Student Loan - Loans and Debt Consolidation

FOR PROFIT COLLEGES ATTACK OBAMA STUDENT LOAN RULES MYBANKTRACKER COM

For-profit colleges and the federal government aren t exactly getting along. New rules from the Obama administration would punish for-profit academic institutions that tend to drive up students college loan debts. This has generated substantial dissent from some of these colleges, triggering backlash in the form of letters and visits from lobbyists.

Representatives of the for-profit education industry, along with lobbyists, are frantically pushing Washington to rethink its new law, which could endanger funding for some for-profit schools, according to Bloomberg.

Battling Skyrocketing Student Debt

Student loan debt is stacking up across the U.S. at an astounding rate. In fact, the total amount of American student loan debt is greater than the nation s total credit card debt.

For-profit colleges have a lot to do with that. The colleges, like Westwood College mentioned here often offer industry-specific training over two-year periods. The problem with those schools are that their credits sometimes do not translate well to standard four-year colleges and that degrees from the schools often do not yield salaries large enough to pay down accumulated student debt.

The new rule, put into place in late July, is meant to protect students from taking out loans they might not be able to pay back. The government will only offer government aid to the colleges that can prove that a certain number of students are able to repay their debts. That means some sch...[more]