CNN: For-profit colleges face tougher funding standards

positivelypersistentteach:

In order to receive federal funding for education programs, for-profit colleges now need to prove that their graduates are actually getting jobs.

A new regulation issued by the Department of Education blocks federal aid to students enrolled in programs resulting in high debt for graduates who are left without secure jobs allowing them to pay that debt.

“While many career college programs are helping to prepare America’s workforce for the jobs of the future, far too many students at these schools are taking on unsustainable debt in exchange for degrees and certificates that fail to help them get the jobs they need or were promised,” the department said in a statement.

The regulation requires for-profit programs and certificate programs at nonprofit and public institutions to meet employment benchmarks in order to quality for federal aid. A program has to meet three requirements: at least 35% of graduates are paying their student loans, and the annual loan payment does not exceed 30% of a graduate’s discretionary income or 12% of total earnings.

Interesting.