Reining in the multibillion-dollar industry has been the administration’s goal for most of President Barack Obama’s term in office, fueled by complaints that for-profit colleges lure students with misleading promises, then saddle them with debts they can’t pay back despite their newly granted degrees. Its latest tool is the Education Department’s long-debated “gainful employment” rule, which requires colleges to track their graduates’ performance in the workforce and eventually will cut off funding for career training programs that fall short.
The Department will:
DIGGING INTO DIPLOMAS: The U.S. is on track for a 90 percent high school graduation rate by 2020 after hitting a record high 81 percent this year. That’s according to the GradNation campaign’s sixth annual report released by America’s Promise Alliance, the Alliance for Excellent Education and others. The 10 largest states, including California, Florida, Georgia and North Carolina, are driving progress, the report says. A quarter of the nation’s largest school districts also made significant improvements, largely signifying gains for low-income students and students of color.
The Consumer Financial Protection Bureau (CFPB) and the U.S. Department of Education have taken action against for-profit colleges, most notably Corinthian Colleges. In the past year, the CFPB and the Department of Education cut off Corinthian Colleges’ access to federal loans and it agreed to sell most of its campuses in July 2014.