On this page you’ll find links to the latest education and financial aid news from some of the most trusted sources in the industry, including The Chronicle of Higher Education, Insider Higher Ed, The New York Times and The Huffington Post.
For analysis, editorials and additional information, be sure to visit Knowledge Bound: The RSC Blog!
For-Profit Colleges Struggle With Gainful Employment StandardsJun 26, 2012
Associated Press – The Department of Education says 93 for-profit colleges could lose access to federal financial aid for poor “gainful employment” rates for their graduates. Standards created last year by mandate that at least 35% of graduates from colleges accepting federal funds are paying back their student loans or that said loans aren’t more than 12% of their total income (or 30% of discretionary income). The Department of Education has found that 193 programs at these colleges, 20% operated by Corinthian Colleges, failed to meet this standard. 5% of all for-profit colleges examined failed to meet federal benchmarks, while 2 ½% met all three. While these numbers exceeded federal expectations, they still pale in comparison to gainful employment rates at traditional non-profit colleges. For more, read Feds: For-Profits Could Lose Federal Student Aid.
The average student loan debt for a graduate with an associate degree from a for-profit is $14,000, much higher than that of a community college graduate. If at all possible, avoid for-profit schools. Get your associate degree from your local community college. It can save you a bundle, lead to a degree employers respect, and greatly improve your chances of landing a job. For more on how you can save money on college, sign up for a Free Financial Aid Web Event today!