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There is good news for high school students and staff members. Finally after a long contemplation and a period of planning the education department has come up with a gainful employment rule. This rule will benefit those for-profit colleges who have students with a lot of debt.

This rule will now ensure that the authorities will track down all those programs that require students to take up large amounts of loan, much more than they can ever pay back and restrict such programs. This rule is to be applied for non-profit as well as public courses which are less than 2 years and in courses where the students may fail to pay back the loans.

This rule will have a huge impact on the for-profit colleges. At least 12 percent of students fail to pay their EMIs on loans each year. 6 percent of students who take federal loans are also unable to pay back on time. 

However, according to authorities, this new rule is very complicated. So much that it is one of its kind in the many years that the department has been in power. This rule will help President Obama’s attempt to regulate the for-profit sector that received a lot of funds from the federal aid.

This is great news indeed for students who seek loans because now there will be a system in place that will help them sort out the education loan issues. Students and parents who think their children should go in for higher studies do not think twice when it comes to taking loans. Seeing their child acquire a university degree from the best available college is good enough for them.

While these monetary decisions should be taken using your head, they are often taken by the heart. Also parents end up mortgaging their homes. Loans as such are so much and the interest paid on them is even more therefore, making it very difficult for students to pay them back on time. In fact many cannot pay the entire loan amount and it extends as a life long liability. Plus many such people with education loans drive away potential partners too.

This has become a major problem for students in the US. The American education system therefore, welcomes such a rule. However some people are against it. They fear that such a move will cripple the for-profit organisations. They believe that whatever is going on is fine.

The rule will be charted out and completed by November. What we need is a stress free education system from which both the education system and the students benefit just the same. But that is not what is happening right now.

Therefore, the government needs to come up with measures that will rectify the problems the students face in terms of education loans. In the times of cash crunch, this could very well be a good move. Therefore, all one can do is to wait and watch and hope that it turns out to be profitable for all.