Balance between learning and profit

I currently work at a franchise school.  By franchise, I mean there is more than two campuses and we all follow the same curriculum and lesson plans at the same time.  My problem is as director I am charged by the owners to keep students enrolled and not allow them to drop, at least not in the first 10 weeks.  The sooner a student drops out, the more money has to be paid back to the loan agency from the school.  The problem is anyone and everyone who thinks "Oh, massage is easy.  It's just rubbing on people!" is allowed into the program.  There are no standards set.  Last week, I had three students drop or change programs (we are part of a beauty school) and I am in hot water because I encouraged these students to change programs.  I have at least 2 more who have failed every test but been allowed to retake these test.  Some have failed the retakes.  I am told this is 'alright.'  (Massage is the most expensive program, thus we lost money when they changed to something else.)
How many of you teach in a school with no entry requirements?  Even when I ran a theatre department, we had auditions and GPA requirements.  To me, it seems ridiculous to have a program--something in the medical field- that does not have a standard.  I've been told not to ever mention this to the owners again because the couple has fired people for suggesting this.  I'm morally torn.  I think its great to give everyone a shot at a dream, but I also think its cruel to allow folks to incur massive debt for a program they cannot complete.  If a person has trouble filling out the financial aid 'test', then I can tell they usually aren't going to be able to pass anatomy 101.  Am  I naive and this is how all vocational schools operate?  And to be really naive:  why isn't there a law against preditory recruitment?