Thursday, June 2, 2011

For-Profit College Regulations: Obama Administration Issues Rules

For-Profit College Regulations: Obama Administration Issues Rules

For-Profit College Regulations: Obama Administration Issues Rules

Duncan

First Posted: 06/ 2/11 12:01 AM ET Updated: 06/ 2/11 08:00 AM ET

The Obama administration on Thursday issued a series of highly anticipated regulations aimed at cracking down on for-profit colleges and other career training programs that leave students saddled with unmanageable debts and contribute to an unequal share of federal student loan defaults.

The final rules issued by the Department of Education, however, are significantly less stringent than a draft version released last year, giving college programs an additional three years to come in line before possibly losing access to lucrative federal student aid dollars. The changes come after an unprecedented lobbying and campaign financeoffensive over the past year by the for-profit college industry, which derives a vast majority of revenues from federal student loan and grant programs a