July 1 student loan rules put more investor risk on nonprofit degrees, new data show
July 1 student loan changes are shaking up where the risks land. New Department of Education data show fewer for-profit college programs now face losing federal aid under the final earnings rule. Nonprofit schools, on the other hand, now have almost five times more exposure tied to programs flagged as likely to fail. Investors now need to look past tax status and focus on what programs each school runs. Investors looking at Grand Canyon Education, Strategic Education, Perdoceo Education, or private lenders like SLM Corp and SoFi Technologies usually start with federal-aid exposure. The next thing they watch is private credit demand from families once federal limits are reached.