For-profit colleges that saddle their students with huge debts and offer few marketable skills would have to overhaul their programs or lose access to federal funds under new rules announced yesterday by the Obama administration. The for-profit industry includes giants such as the University of Phoenix, DeVry University, Brown Mackie, Corinthian Colleges and Education Management Corporation. As proposed, the new rules would penalize career oriented programs that graduate students without the training needed to find a job with a salary that will allow them to pay off their debt. Schools that fail to meet that threshold would lose access to the federal student aid programs. The for profit college industry successfully blocked a previous proposal and said it would again challenge the new rules released yesterday.
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