News Summary: Federal aid at risk at for-profits

News Summary: Low loan repayment rates put for-profit colleges at risk of losing federal aid

Associated Press

AT RISK: Former students in career-training programs at dozens of for-profit institutions have so much trouble repaying loans that authorities may cut off dozens of schools' access to federal student aid.

NEW RULES: The U.S. Department of Education says too few students from 193 programs at 93 schools met requirements of the new federal "gainful employment" rule. Federal rules adopted in 2011 aim to ensure graduates can get a job and don't just accumulate debt.

DISPROPORTIONATE DEFAULTS: For-profit institutions enroll 12 percent of U.S. higher-education students but account for 46 percent of student loan dollars in default.

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