Increasing college costs and the corresponding influx of new schools that are virtually 100% funded by government loans is an ongoing and growing concern. Some schools use deceptive practices to bring in new students by making unrealistic income promises to convince them to max out their student loans. This pattern leads to defaults on tax payer funded loans and excessive personal debt for affected students.
The current standard only measures defaults for 2 years after graduation and requires a school to have a 25% default rate for 3 years before any action is taken. 25% over 3 years is too high to be a meaningful deterrent and the two year limit is being gamed by many offending schools.
http://www.huffingtonpost.com/2012/12/27/for-profit-colleges-student-loa...