To meet new "gainful employment" standards that have been in the works in Washington, D.C. for several years, career-oriented colleges and universities will have to demonstrate that the typical graduates' loan debt from the program constitutes less than 20 percent of their discretionary income, or about 8 percent of their total earnings.
In announcing the changes after protracted rule making process, the United States Department of Education that it anticipated that about 1,400 programs educating more than 800,000 adults would fail the new "gainful employment" test.
The danger to schools that fail the "gainful employment" test is great: Failing colleges and universities will become ineligible for federal student aid, the lifeblood of many for-profit school programs.
Critics of for-profit schools say these institutions have harmed students for years by selling them expensive career-oriented programs with high-pressure sales tactics and with little or no job prospects after graduation.
If you have a concern relating to your legal options at a for-profit school that you have attended or worked at, you may share your concern by clicking here.