The Obama administration is increasing regulation of for-profit career colleges.
Major for-profit colleges including ITT Technical Institute, the University of Phoenix and Everest College, owned by Corinthian Colleges Inc., are criticized for low graduation rates, targeting low-income consumers and leaving students with massive debts.
These corporations at risk of losing eligibility for federal student loans and grants, which provide up to 90% of the revenue for some for-profit schools. To avoid losing the funding, programs within the schools will have to meet debt-to-income requirements for two out of three consecutive years.
The Corinthian corporation has been accused, over the past year, of falsifying student job placement rates and steering students into high-interest loans. It announced in July that it would sell the majority of its campuses.
Read the full article at LA Times.
