WTVM: For-profit schools must prove grads can pay back student loans for federal money

Career College Central Summary:

  • For-profit colleges that aren't quite making the grade will no longer have access to federal financial aid.
  • According to the United States Department of Education, many for-profit schools aren't holding up their end of the bargain and are taking in student loan money, pumping out graduates, and leaving many in massive debt with little to show. 
  • The Department of Education then introduced the Gainful Employment rule to help assure that career colleges turn out graduates who can repay their student loans. If students can't, the schools could lose access to federal student-aid programs.
  • After the Gainful Employment rule was introduced, several for-profit schools filed a lawsuit claiming the rule was unfair. But just this week, a federal judge tossed the suit, saying for-profit schools will have to prove graduates make enough money to pay back student loans.
  • In February, WAFF spoke to leaders at Virginia College, a for-profit school in the Huntsville area. They defended the school, its curriculum, and said most of their programs would not be impacted by the new rule.  
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