Hundreds of Colleges Saddling Students With Unaffordable Debt, Feds Say
Even some Harvard grads are leaving school with debt they can't repay.
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About one in four career-training programs at U.S. colleges is at risk of losing federal funding, the lifeblood for most schools, the Department of Education said on Monday. In a news statement, the department disclosed for the first time the number of recent graduates saddled with potentially unmanageable debt.
The figures are part of the package of rules known as the gainful employment regulations, which attempt to measure whether graduates of career-training programs end up earning enough to afford their student debt. The Obama administration defined affordability as annual loan payments of no more than 20 percent of discretionary income, or 8 percent of total earnings.