Clearly, it is impossible to put on main-stream loan underwriting requirements to pupils whom, by meaning, aren’t right now making sufficient cash to settle their loans. However the system is at the mercy of punishment by universities whoever main — if not merely — objective is to find their arms 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 effort that is first rejected with a federal judge following the Association of Private Sector universites and colleges sued.
The division has submitted a 2nd guideline to any office of Management and Budget; the details aren’t yet general general public. (more…)