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US Dept. Of Education Releases “Gainful Employment” Ruling

With enough money, the backing of investors and the ability to hire a handful of educators, virtually anyone could run a for-profit college and apply for federal funding. In a lengthy and complicated internal discussion, the US Department Of Education has been forced to ask whether or not this recent rash of for-profit learning institutions popping up is having a negative impact on America's youth.

On the other side of the debate stands student loan companies. US students have been all but bullied into furthering their educations by taking out thousand of dollars in student loans. Federal student loans are serviced by companies like Sallie Mae, whom has been sued, fined and recently knocked out of the federal student lending market altogether.

In a recent ruling, the Department Of Education has decided to stop offering financial aid to schools and program that do no meet its Gainful Employment test. What this means is that institutions of higher learning will need to demonstrate that their programs provide students with marketable skills. In other words, students will no longer be able to get a ride from schools that offer courses of study that do no usually translate into jobs after graduation.

03.06.2011. 17:26