My even-newester newest on Slate is about the recent demise of the Corinthian Colleges group, and the for-profits’ federal 90/10 rule. The 90/10 rule isn’t new, and neither is gaming it, but that doesn’t mean I’m not pissed! Here’s an excerpt:
Corinthian was discovered gaming the gainful-employment requirement by, say,hiring its students out to temp agencies for two days or counting Taco Bell as relevant employ in the field. Thus I can see why the industry fought the regulations with such vehemence. Now the Obama administration wants to add to for-profits’ tribulations by closing loopholes in the current “90/10” rule, a federal law mandating they receive no more than 90 percent of their funding from federal student aid programs.
Wait, what? More than what percent of what now?
It seems that some for-profits have used loopholes that allow them to get more than90 percent—because just 90 percent is insufficient—of their funding from the federal teat. Funding that is usually loans. And these loans, lest I remind you, often go unpaid. “To be very clear,” says Duncan, “this is taxpayer dollars. This is your money.”
As always, thanks for reading — especially considering how fat I am.