Proposal would strengthen regulation of for-profit colleges

June 2, 2011
Institutions that don't meet benchmarks could lose ability to dispense federal aid to students

From The New York Times: The U.S. Department of Education has tightened its regulation of for-profit colleges and other vocational programs that get billions of dollars in federal aid but leave many students with large debts and credentials worth little on the job market. Under the new rules, programs would lose their eligibility to dispense federal student aid — and as a practical matter, be shut down — if, over the next four years, their graduates fail to meet new benchmarks for loan repayment and ratio of debt to income.

SEPTEMBER 2010...from The Washington Post: The Obama administration says it is postponing action on a proposal to regulate for-profit colleges and trade schools. In granting the industry a reprieve of a few months, the administration warns that it intends to proceed with regulations meant to ensure that students are not overburdened by debt.

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