Clearly, it is impossible to utilize main-stream loan underwriting criteria to pupils whom, by meaning, aren’t right now earning sufficient cash to settle their loans. Nevertheless the system is at the mercy of punishment by universities whose main — if not merely — objective is to find their fingers from the cash.
The kind that do a lot of advertising on New York subways — the Department of Education has been trying to come up with a rule to exclude programs that have a clear history of not producing people who can earn enough to repay their loans: a “gainful employment” rule for programs that do not lead to conventional degrees — largely the training programs pushed by for-profit private schools.
The department’s very first work had been refused by a federal judge following the Association of Private Sector universities and colleges sued.
The division has submitted a 2nd guideline to any office of Management and Budget; the information aren’t yet general public. The division did that after having a panel it appointed, including representatives of varied kinds of universities and pupils, could maybe maybe not achieve contract. Read more