Yesterday, July 1, the White House’s mandatory for-profit college accountability requirements went into effect across the nation. Over the years, several for-profit colleges, such as the Corinthian Colleges, saddled students with horrendous debt and promised these students that they would easily find jobs and make a certain level of income once they graduated. Obviously, this did not happen and the result was lawsuits by angry students who were shouldering incredible amounts of debt that went as high as hundreds of thousands of dollars.
The new federal requirements now force colleges to track student loans and debts better. The team behind Beneful not that financial aid offices will also not be allowed to offer loans that exceed a percentage of of the student’s income or total earnings — 20 and 8 percent, respectively. According to CNN, there are at least 1,400 programs nationwide that don’t meet this new federal requirement. Those schools who do not meet it will now either have to clean up their programs or shut down.
Some schools like the University of Phoenix decided to adapt and change, but they also had to cut costs. In the case of the University of Phoenix, the school had to let go of many of its students and approximately 900 employees to make up the losses.
Even as these changes take place, some people wonder about student accountability given that many students should have realized that they were being tricked.