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For-profit colleges admit failing grade

Gainful Employment rule shutters more programs.

A sign marks the location of the University of Phoenix Chicago Campus on July 30, 2015 in Schaumburg, Illinois. 
A sign marks the location of the University of Phoenix Chicago Campus on July 30, 2015 in Schaumburg, Illinois. 
Scott Olson/Getty Images

For-profit colleges are beginning to disclose how the so-called “gainful employment” rule is affecting their business. The two-year-old federal rule is aimed at career training programs whose graduates don’t earn enough to pay off their student loans. One of the largest for-profit colleges, the University of Phoenix, says programs that account for 16 percent of its students failed the new standards.

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