Kline Questions New Rule For For-Profit Schools

MINNEAPOLIS (AP) — Minnesota Rep. John Kline says he’s concerned the U.S. Department of Education is moving forward with its crackdown on the country’s for-profit schools to protect students from taking on too much debt to attend schools that don’t help their job prospects.

The Department of Education has finalized its “gainful employment” rule, which will ban for-profit schools from accessing federal financial aid dollars if too many of their graduates are unable to find jobs that pay enough to allow them to afford their student loan payments.

Under the rule announced Thursday, schools will only be able to receive federal-paid tuition if at least 35 percent of its former students are repaying their loans.

Kline is chairman of the House education committee. He says the rule will limit the ability of millions of people to gain the training necessary to succeed in the workplace.

(© Copyright 2011 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)

Comments

One Comment

  1. The Trend says:

    Kline is on the payroll of these Shysters- they are the new Angelo Mozillos only the tax payers get stuck with the loans and the kids with worthless
    “degrees” and huge debt they can never repay- the behavior of these loan hustlers at these “schools” promising vast riches would make Denny Hecker blush.
    These rules are long overdue.

  2. JB says:

    The Trend, I agree, but it has to be a level playing field, so apply the same rules to public schools too. I smell “education MN” in this bill and the funny part is, private schools graduate higher percentages of kids and have higher placement rates in choosen fields compared to public schools, so yes, lets tighten up the rules, for EVERYONE.

  3. The Trend says:

    Agreed- these trade “schools” charge the same tuition (because they can based on government loan guidelines) but have much lower overhead. The difference goes into the CEO’s pocket and to people like Kline to protect the status quo.

  4. MAJ says:

    Is this targeting on line schools who accept everyone who applies. I am in favor of weeding out schools sthat do not put out a student capable of getting a job and repaying a loan. My children all went to state schools and got a good job and repaid their loans. I fear way too many people do not plan on paying off their loans.

  5. Bart says:

    This needs to be applied to Public Schools as well. The total cost of some of these programs are extreme.
    One of the comments above is that the for profit schools have less overhead and the extra goes into the pockets of the CEO’s. This says a lot about public schools. Where is all the fat going??

    1. The Trend says:

      Go see waiting for superman…you’ll be appalled at all the waste. These for profit schools are little more than remedial high school

      1. dan says:

        Thats like saying inconvient truth was about burning more fossil fuels and supporting warmer global temps

  6. Citizen says:

    @JB. Do you realize that many of these schools have higher placement rates because they have companies in their pocket that make sure the kids get jobs right out of the school–for one school year. Then these students are fired to make room for the next graduating class. Quite the scam! The loan repayment would be a better barometer of what is happening to these students.

    1. Bart says:

      Considering the first job out of College is only 1-3 years, I would take the private school placement anytime.
      I guess the other option is to get a wonderful Liberal Arts degree from a public school, a pat on the back and a $125,000 bill.

  7. Finn says:

    The next time you see Kline stand up for anyone, but Millionaires and Billionaires, will be the first! Kline hasn’t had an original idea since he became one of the YES men for the corrupt. No way he could have thought to oppose this on his own, someone had to tell him!

  8. Dar says:

    My son was not able to get a job that would pay enough to support him let alone repay his college loans. The parents get stuck with paying the loans so this will be skewed to being with.

  9. Elliminate the U of MN says:

    College is a waste of time and money. Period.

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