Career Colleges May Face New Rules As A Result Of Saddling Students With Debt

Career colleges may face new rules as a result of saddling students with debt

A recent look at for-profit colleges has resulted in scrutiny by the Department of Education because of their failure to prepare students for job market success and leaving them facing large amounts of debt. As a result, these colleges may see new rules regarding federal aid.

For-profit colleges are generally aimed at educating their students for a specific job sector, making it more likely that they will gain employment following graduation. But the latest data reveals that more students are graduating from these institutions without a job or the ability to repay their debt, leaving them financially strapped. As a result, the Department of Education is considering a measure that would require schools to either better prepare young adults for the job market, or risk losing federal funding.

"While career colleges play a vital role in training our work force to be globally competitive, some of them are saddling students with debt they cannot afford in exchange for degrees and certificates they cannot use," Education Secretary Arne Duncan said.

Unlike other forms of financing, individuals may not be able to discharge student loans through bankruptcy, leaving them with fewer debt relief options. Young adults who are strapped with student loan debt should consider speaking directly with their lender to explore other repayment options and programs.