If they can’t get jobs, they will likely default on their student loans.

ABC News reports.

Why Failure of for-Profit College Risks Federal Money

When for-profit Corinthian Colleges Inc. nearly failed in the summer of 2014, government dollars were on the line along with tens of thousands of students’ educations.

Here’s how the Education Department was exposed by Corinthian’s woes — and what remains at stake now that many of the schools have been transferred to a new nonprofit owner:

As a for-profit career college, Corinthian’s revenue depended on its ability to enroll students and then tap federal grants and student loans to cover tuition. In response to longstanding allegations that the school had fabricated its job placement data and lied to students, the Education Department put a three-week delay on the flow of federal loan dollars to the school in the summer of 2014.