A coalition of 51 consumer groups have urged President Obama not to weaken a new rule aimed at measuring the gainful employment success of graduates of colleges, universities and trade schools that receive federal student loan funding. According to the Consumerist website
, the group is urging the Obama Administration to not weaken the proposed rule in the face of intense lobbying by the for-profit school industry to weaken it. The letter, a copy of which is here
, quotes the President's own earlier statements about the importance of protecting students from predatory practices by schools that mislead students into pursuing expensive programs with slim prospects for careers that would justify the heavy debt burden taken on by the students. In August 2013, President Obama said in part, " [T]here have been some schools that are notorious for getting students in, getting a bunch
of grant money, having those students take out a lot of loans, making big profits, but having really low graduation rates. Students aren’t getting what they need to be prepared for a particular field. They get out of these for-profit schools loaded down with enormous debt. They can’t find a job. They default. The taxpayer ends up holding the bag. Their credit is ruined, and the for-profit institution is making out like a bandit. That’s a problem."