For-Profit Schools: Large Schools and Schools that Specialize in Healthcare Are More Li... - 0 views
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Roger Mancastroppa on 11 Feb 11In 2008-2009, nearly $24 billion in loans and grants went to about 2k for-profit schools under federal student aid programs. About 20 years ago there was some concern by the Fed that the schools were recruiting students not ready or capable for higher education. A lot of the students were not prepared for the jobs they were supposedly trained for and so they never got jobs in those areas. In turn many of them defaulted on their student loans. Congress put the 85/15 rule in place - meaning that the for profit schools would have to raise 15% of their student aid from other sources. That was reduced to 10% in the late 90s under Clinton.