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For-Profit Colleges May Lose Federal Student Aid

Posted on Wednesday June 27, 2012 by

The Associated Press’s Christine Armario reports that for-profit colleges may lose federal student financial aid if their students don’t improve their payback rate.

• Daniel Luzer of Washington Monthly speculates on what the new federal regulations may mean for the for-profit schools.

• The Education Management Corporation has found errors in the Department of Education report that may determine whether or not federal student aid is lost.

• Michael Stafford of Inside Higher Ed reported that 193 vocational programs at 93 have failed to meet the gainful employment standards a school must meet in order to receive federal student aid.

CNBC’s Herb Greenburg describes the for-profit colleges as “dazed by the data” supplied by the federal government on gainful employment of graduates.

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