The US Department of Education has released a list of potential regulations aimed at student debt at for-profit universities. According to Politico:
The regulation would cut off federal aid to programs at for-profit colleges and vocational programs at all colleges whose graduates’ debt is more than 30 percent of their discretionary income and 12 percent of their annual income for two out of three years.
And the regulation would create a new warning zone for programs whose graduates’ debt exceeds 8 percent of discretionary income or 20 percent of annual income. Those programs would have to warn prospective students and limit their enrollment. After four years in the warning zone, the programs would lose federal financial aid.
Negotiations between the Department of Education and affected higher education programs began on September 9. Another Politico article claims that the debates will be contentious and take place against a politicized backdrop pitting President Obama against Congressional Republicans who oppose the regulations.