For-Profit Higher Ed Sector Relieved About Government Rule
Education Secretary Duncan: "We need this sector to succeed."
The $23 billion for-profit higher education business got a boost yesterday when the U.S. Department of Education finally released the most controversial of its new rules aimed at regulating the sector. The rule, known as “gainful employment,” would cut off federal financial aid for programs whose students don’t wind up earning enough to pay back their loans. Jeffrey Silber, a senior analyst at BMO Capital Markets, says for-profit educators are “relieved” at the rule’s final version.
