White House to Withhold Funding for For-Profit Colleges

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    The Facts

    • The US Dept. of Education announced a new rule Wednesday that will withhold federal funding from for-profit colleges and all non-degree programs that consistently leave graduates with low-pay or unaffordable loans. The measure, called a "Gainful Employment" rule, will be officially published on Oct. 10.

    • The policy, which will take effect on July 1, 2024, will require schools to prove that certain programs will be able to help graduates afford their student debt payments and make more money than an adult in their state who didn't go to college. If a school cannot do so, it must give a warning to prospective students.


    The Spin

    Narrative A

    Though it's taken far too long to materialize, this policy is a huge win for both students and taxpayers. Through false claims suggesting that the new rule would harm marginalized groups, the higher education lobby has for decades blocked federal attempts to guide vulnerable students through the expensive world of university studies. This lie will be exposed after students begin switching from dead-end industries to profitable ones.

    Narrative B

    The debt-to-earnings formula cited by the government to push its gainful employment rule is flawed, including failing to include factors other than a school's quality that affect someone's earnings. Schools — even for-profit ones — want their students to succeed as much as anyone, and this rule will only hinder student success.


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