This requirement would force for-profit universities to show that their courses had a meaningful impact on a student's employment prospects. According to the Economist, the gainful employment "requirement would make a course eligible for government loans only if enough current or past students are repaying their loans."

For-profit colleges claim that they have a higher percentage of drop outs because they have a poorer class of students.

The affect of government regulations would lower revenue and profits for the sector. Costs would increase if schools have to follow stricter reporting standards. …