For-Profit Colleges
Over the past six years, the U.S. Department of Education has established tougher regulations targeting forprofit, or career colleges — institutions that operate as a business, often have shareholders, and derive most of their revenue from taxpayer-funded student financial aid. Among other actions, the Department has issued “gainful employment” regulations (also applied to community colleges and public universities), intended to help ensure that students at career colleges don’t end up with debt they cannot repay. The rule requires colleges to track their graduates’ performance in the workforce and eventually will cut off Federal funding for career training programs that fall…
