For years, regulators and the Obama administration have been trying to reign in all of the abuses of for-profit colleges. In a nutshell, these colleges make big promises to students and then encourage them to take out big student loans. The colleges get paid, but then when students can’t get the type of jobs they were promised (or just drop out), they’re stuck with the student debt and there’s zero risk for the colleges. These for-profit colleges have lower graduation rates and much higher student-debt default rates than traditional colleges.



