It took months of negotiation, but the Department of Education has finally decided on a “gainful employment” rule that would crack down on for-profit colleges, as well as public and non-profit vocational colleges, that have encouraged students to take on excessive student loan debt that they couldn’t pay back.
These colleges and universities were recently under fire for their questionable practices that resulted in the schools increasing their flow of federal money. Now, restrictions will be placed on programs that don’t allow students to earn enough money to pay back their loans. It is expected the for-profit industry, where students are most likely to default on their loans, will see the biggest impact (City Town Info).
