Clearly, it is impossible to put on old-fashioned loan underwriting criteria to pupils whom, by meaning, aren’t at this time earning sufficient cash to settle their loans. However the system is at the mercy of punishment by colleges whose— that is primary not merely — objective is to find their fingers in the cash.
The kind that do a lot of advertising on New York subways — the Department of Education has been trying to come up with a rule to exclude programs that have a clear history of not producing people who can earn enough to repay their loans: a “gainful employment” rule for programs that do not lead to conventional degrees — largely the training programs pushed by for-profit private schools.
The department’s first work ended up being rejected with a federal judge following the Association of Private Sector universities and colleges sued.
The division has submitted a 2nd guideline to any office of Management and Budget; the important points aren’t yet public.