Senator: For-profit colleges use subprime mortgage-type loans

Harkin says new Education Department rules are "better than nothing."

Students attending for-profit colleges are subject to subprime mortgage-like loans that saddle them with thousands of dollars in debt and waste millions in taxpayer dollars, Democratic lawmakers and education experts said at a June 7 Senate hearing.

The hearing of the Senate Health, Education, Labor and Pensions Committee came just days after the Education Department issued new rules to deal with the student debt problem at career colleges, rules that those at the hearing said did not go far enough.

Read more about for-profit regulations in higher education……Read More