Tuesday, August 11, 2015
Has the gravy train stopped running
After years of milking students (and the government) for massive sums of money and providing questionable education in return, for profit colleges are looking at new regulations which may put an end to the gravy train. Needless to say they don't like it one bit.
After trying for years to tighten the rules on for-profit colleges, the Department of Education finally enacted regulations on the industry this summer. But the fight’s not over.And is anyone surprised that the for profit schools have Republican allies in Congress? Just another part of the Republican efforts to divert tax dollars for education into private pockets.
A month after new rules went into effect, the department faces continuing push-back from the colleges, and Republican lawmakers as well.
The regulations require for-profit colleges, such as prominent names like the University of Phoenix and ITT Tech, to prove that students can find “gainful employment” after finishing school.
The intent is to separate credible programs from those that weigh students down with significant debt for degrees that end up being worth little. Colleges are now asked to show that the average student’s annual loan payment is not more than 20 percent of the student’s discretionary income after graduation.
If the schools don’t meet the standard, they risk losing their federal financial aid. Public and private nonprofit colleges are not required to prove that their students meet such a standard.
For the Education Department and others that have spent years fighting to implement the regulations, it’s an important step toward cracking down on an industry that has been criticized for taking advantage of students.
“It’s a big issue,” said Rep. Rosa DeLauro, D-Conn. “They wind up in serious economic difficulty. With high debt, they default. They don’t come out with a meaningful education or degree or certificate that allows them to be gainfully employed.”
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