The for-profit education sector, once a private equity darling because of its steady income streams, is in danger of receiving failing grades as regulators push the schools to demonstrate that they are providing their students with real skills for real jobs. One way regulators are doing that is with “gainful employment” rules aimed at lowering the number of defaults for student loans, which are much higher than their non-profit brethren. Big debt loads and investigations are already taking their toll on a number of the schools, but they also have plans to go online or abroad.
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