Trade schools have to find grads jobs, or lose financial aid

WASHINGTON (AP) — New rules from the Education Department are going into effect for any college offering a career-training program: They have to prove their graduates earn enough money to repay their student loans.

Supporters say the rules are needed to rein in the for-profit college sector, which they say has preyed on low-income minorities because of their eligibility for federal student aid.

Backers of the industry say they are being unfairly targeted and that many public universities wouldn’t be able to defend their degrees either under the new metrics.

Twenty years ago, trade schools started popping up on U.S. stock exchanges to maximize profits. Since then, allegations of misconduct have been rampant.

For-profit schools consistently take in more federal loan money than nonprofit schools, despite enrolling a smaller number of students.

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