New York, NY - The Education Department reported that at 193 programs at 93 schools, students were unable to meet any of three measures under the agency's new "gainful employment" rule. The new regulations, announced by the Obama administration last year, are aimed at making sure students in career-training programs at for-profit, nonprofit and public institutions are able to get a job and pay off their student loans when they graduate.
Twelve percent of all students in higher education attend a for-profit institution, yet they represent 46 percent of all student loan dollars in default. While students who attend community colleges usually do not have to borrow money to enroll, the median federal student loan debt for a student earning an associate's degree at a for-profit was $14,000.
Meanwhile, for more than a quarter of for-profit schools, 80 percent of their revenue consists of federal student aid, the Department of Education said in announcing the finalized rule last year.
The data being released Wednesday covers 3,695 programs in 1,335 schools over a two-year period. Of those, 35 percent met all three measurements; 31 percent met two; 29 percent met one and 5 percent did not meet the new benchmark criteria.