For-profit colleges collected $32 billion from the federal government in the 2010-11 academic year, but three of those schools will now be cut off from that money. Data from the Department of Education shows 15 for-profit colleges are getting too much of their revenue from federal student aid sources and failing to meet the 90/10 rule.
The federal 90/10 rule puts a 90 percent cap on for-profit institutions of how much of their revenue can come from government sources, like Pell Grants and federal student loans. The idea is to prevent these institutions from making a large profit off of tax dollars, and keep them from preying on low income students who would be eligible for Pell Grants.
The University of Phoenix collected the largest amount of federal money, with more than $5 billion coming from government student aid. DeVry University, Ashford University, Kaplan University and ITT Technical Institute each collected around $1 billion through federal aid dollars.
Many of these For-Profit institutions of higher earning (no, that is not a misprint) recruit students who should never have been recruited - they were never college material. It matters not, the colleges get the money, the students drop out, and the colleges keep those tax payer dollars.
Why yes, I can think of billions of reasons not to elect Romney.