The for-profit college industry just got dealt a blow
That ruling was a blow to the for-profit college system and will force programs to show that the loan payments of the average graduate won't be more than 20% of their discretionary income or 8% of total earnings.
The ED sees the ruling as a major win for upholding its regulatory enforcement powers. "Today's decision is a win for America's students and taxpayers," Secretary of Education Arne Duncan wrote in a statement released to the press. "Far too often, so-called career colleges leave students burdened with debt they'll never be able to repay and stick taxpayers with the bill."
But advocates who work to diminish the reach for-profit colleges are more cautious about claiming victory. "I think it is a turning point," attorney David Halperin told Business Insider.
"But I think there is a still a long way to go and there's still the possibility that by acting aggressively, the for-profit colleges can end up going back to their bad behavior," Halperin, the author of "Stealing America's Future: How For-Profit Colleges Scam Taxpayers and Ruin Students' Lives," added.
Halperin explained that lobbyists are fighting hard in Congress to overturn rulings that put restrictions on for-profit schools. Still, he believes that the recent awareness about the practices of some for-profit schools has been crippling to the industry and is beneficial for students who consider attending.