NAICU - New restrictions on for-profit colleges don't seem strict enough

Even though the 2012 NAICU Annual Meeting is history, you can continue to benefit and learn from the many presentations and speeches that were offered, and are now available on line.

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New restrictions on for-profit colleges don't seem strict enough

Los Angeles Times - Editorial

August 9, 2010

The U.S. Department of Education, which loaned $20 billion to students at for-profit schools in 2009, has now stepped in with new rules intended to reduce the number of defaults. Using data on loan repayment rates and on debt-to-income ratios, the agency will refuse to lend money to students in the programs with the worst numbers, and will impose new requirements on schools with dubious numbers. It remains to be seen whether the rules are stringent enough. Only 5% of programs are currently expected to be disqualified from participating in the federal loan fund, and 7% would face restrictions.

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