According to reports, the White House announced efforts to hold for-profit colleges and other career-training programs accountable for producing graduates who can earn enough money to pay back student loans.
New regulations related to “gainful employment†would mean programs could get their eligibility for federal aid revoked if too many of its students defaulted on student loans or had debts too high relative to earnings.
“For too long, some of these programs have measured success by how many students they enroll—and that needs to change,†Secretary of Education Arne Duncan said in a statement. “Success in career education should be measured by how many students graduate prepared for a good job with sufficient earnings.â€
The Dept. of Education indicates that students at for-profit colleges account for about 31% of student loans and almost half of loan defaults.
There has been push back from those in the for-profit education industry, with the main criticisms being unfair targeting and a domino affect of less access for prospective students if programs lose funding.