Government moves to protect students from overwhelming debt

|By:, SA News Editor

The White House has proposed rules that could cut federal funding to higher-education training programs if the cohort default rate among graduates for their student loans exceeds 30% for three years in a row.

Programs could also lose out if annual related debt payments surpass 20% of their discretionary income or 8% of their total income.

The proposed regulations are tougher than similar rules that were struck down in court in 2011.

The for-profit sector is unsurprisingly not happy with the rules.

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