Although students at for-profit institutions represent just 12 percent of all higher education students, they account for more than a quarter of all student loans and nearly half of all student loan dollars in default, according to the U.S. Department of Education.
For-profit vocational and technical colleges have been widely criticized for allegedly targeting students who can’t afford to pay the costs of traditional post-secondary education and not providing adequate training to give students job skills they will need for careers.
"While for-profit schools have profited and prospered thanks to Federal dollars, some of their students have not. This is a disservice to students and taxpayers, and undermines the valuable work being done by the for-profit education industry as a whole," U.S. Education Secretary Arne Duncan said.
So on June 1, the Obama Administration unveiled regulations requiring career college programs to better prepare students for "gainful employment" or risk losing access to Federal student aid.