Editorial: Obama Chooses Wrong Path To Reform For-Profit Colleges
"The U.S. Department of Education wants to improve the chances that students at for-profit colleges come away with a reasonable likelihood of 'gainful employment in a recognized occupation.' But the department’s proposed regulatory changes that would strip federal student loan aid from millions of students are more likely to invite lawsuits than to prompt serious changes in how people with limited access to mainstream colleges and universities prepare for careers," The Boston Globe says in an editorial.
"Independent economists call into question the rationality of a regulation that doesn’t account for gains in earnings or changes in economic conditions in a student’s life that have nothing to do with the quality of course offerings.
It’s harder to argue with the Department of Education’s plan to strip student aid from for-profit colleges where student loan default rates are above 30 percent. Yet plenty of public colleges wouldn’t look especially impressive on a student loan default index either. And the Obama administration isn’t rattling any swords at those institutions."
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