US Chamber Urges Education Dept To Withdraw Proposed Debt Rule
By Darrell A. Hughes, Of DOW JONES NEWSWIRES
WASHINGTON -(Dow Jones)- The U.S. Chamber of Commerce is urging the Education Department to withdraw a proposed policy that could strip some for-profit colleges of federal funds.
The issue stems from Education Department findings that suggest students are paying back loans at surprisingly low rates. In an attempt to reduce the number of students who are found to have heavy debt burdens, the department proposed a rule that would measure how well for-profit schools train students for gainful employment in a recognized occupation.
Schools could "pass" based on student loan repayment rates, or by maintaining a debt-to-income ratio below a certain percent.
The comment period for the proposed rule expired on Thursday, which has prompted the chamber to reiterate its concerns as the Education Department gears to review submitted comments.
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