Higher Education and “gainful employment” rules for-profit and vocational programs.
The rules were unveiled in August 2013 by the Obama staff. The premise of the rules are to protect the students from for-profit’s schools. Just keep in mind that non-profit schools do not have the same requirments as for-profit schools:
Debt levels of their graduates
Default rates of their borrowers
Blah, blah, blah what? Okay so basically for-profit schools have to make sure that you are only paying 12% of your income towards your school loan (different than Federally Funded Financial Aid). Most people will have a small payment per month while in school, because all of the Financial Aid will not cover the cost. The second part of the requirement is how many of the students stopped paying on their Financial Aid loans after graduating and have gone into default (6 months after graduation you will start paying on your FA loan). Default is not a good thing as this is where your credit rating could be negatively effected. Be aware once you take a financial aid student loan out, it is like any other loan you will have to pay it back but you have options. Remember, that if you are experiencing financial problems (communicate with the lenders).
The benefits of the for-profit schools: it does not take as long to graduate, the classes have more flexible hours, you will have blended courses online/class room instruction but it will cost a lot more up front. Make sure when you are checking out schools that you ask for the specific institution placement rates, and default rates, those are the two most important questions you will need to have answered before you sign. Keep in mind that all schools are now about making money including non-profits, schools are a business like any organization. Also non-profit schools do not have to show you placement rates or default rates (that doesn’t seem fair). Remember education today is very costly regardless if you are going to a for-profit or non-profit, just remember anything that is worth doing will cost you in someway. If you have any questions feel free to send me an email, Bearla will point you in the right direction….
Bearla International Studies
Elizabeth Koukladas Director
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