Keep For-Profit Schools on a Short Leash
For-profit colleges that leave students with crushing debt and useless degrees must be feeling optimistic. They have longed to escape the rules that rein in their predatory practices, and now they have the Trump administration with its aversion to regulation.
But even minor regulatory changes can lead to abuses that hurt not just students but also taxpayers, since these schools get almost all their revenue from federal student aid. That’s why regulators should keep in mind what occurred in 2008, when Congress temporarily modified a rulerequiring that schools get at least 10 percent of their revenue from sources other than the federal program. Schools were allowed to count private loans as part of the 10 percent before they were actually repaid…..
Read the full editorial at the New York Times here.