October 30, 2014
WASHINGTON (AP) - The Obama administration is proposing new rules designed to protect students at for-profit colleges from amassing huge debt they can't pay off.
Previous rules wound up being thrown out by a federal judge
The latest version would penalize programs that produce graduates without the training needed to find a job with a salary that will allow them to pay off their debt. All schools, for-profit or not, that don't comply would lose access to the federal student aid programs.
Education Secretary Arne Duncan says too many of the programs failed to provide proper training and do it at taxpayer's expense.
The regulations, which would take effect in 2016, will face a vigorous fight from the for-profit college lobby.