The federal government has released data on more than 8,000 colleges showing that many students at for-profit colleges aren’t repaying their student loans. The numbers could imperil the ability of future students at those schools to receive federal financial aid.
Only four for-profit chains— Universal Technical Institute, Grand Canyon Education Inc., American Public Education Inc., and Bridgepoint Education Inc.—met or passed the government’s threshold of a 45 percent repayment rate, which would allow them continued unfettered access to government-backed student loans.
The U.S. Department of Education has promised greater oversight of the schools and tougher rules.
A version of this article appeared in the August 25, 2010 edition of Education Week as Loan-Repayment Rates Low at Most For-Profit Colleges