08/07/2010 05:12 am ET | Updated May 25, 2011

For-Profit Colleges At A Crossroads In Face Of Federal Aid Cuts

Any day now, the federal Department of Education will formally propose new regulations that would cut off federal aid to for-profit colleges whose graduates cannot earn enough to repay their student loans.

The regulations, known as the "gainful employment" rules, are an effort to rein in the high debt loads students take on when they enroll in for-profit colleges that offer certificates or degrees in fields like nursing or culinary arts. Students at for-profit colleges are much more likely than others to default on their loans.


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