The Department of Education put into place new regulations that cut off federal aid if too many students default on loans or fail to earn enough money after graduation to repay them.
The Department of Education has proposed regulations that would cut off federal financing to for-profit education companies whose graduates have high debt-to-income ratios and low repayment rates.
These questions come as the for-profit education industry is under increased scrutiny, with the Department of Education proposing regulations that would cut off federal aid to colleges whose graduates have extremely low loan repayment rates.
Any day now, the federal Department of Education will formally propose new regulations that would cut off federal aid to for-profit colleges whose graduates cannot earn enough to repay their student loans.
In October 2009, 19 members of Congress signed a letter sent to Treasury Secretary Timothy F. Geithner and Ben S. Bernanke, chairman of the Federal Reserve, urging them to impose a one-year delay on enforcing regulations intended to cut off payments to the Internet poker companies.
Reports of students who leave such schools with heavy debt, only to work in low-paying jobs, have prompted the Department of Education to propose regulations that would cut off federal financing to programs whose graduates have high debt-to-income ratios and low repayment rates.
The Department of Education has regulations that can cut off its funding to schools that engage in misrepresentations, directly or through third-party marketers.
The memo also states that APSCU would back a "House leadership supported legislative vehicle" to repeal the Administration's "gainful employment" rule, the hotly-contested regulation that would cut off federal aid to schools that repeatedly leave most of their students with overwhelming debt.
The one that remains is the "gainful employment" regulation that would cut off federal student aid to programs whose graduates borrow too much and earn too little to repay their debts.
