The provision to block ED from implementing the rules passed in the Republican-controlled house this month, but didn’t receive the needed support in the Democrat-controlled Senate.
Although the anti-regulation provision was pushed primarily by Congressional Republicans, a bipartisan letter was submitted April 4 that would have barred ED from implementing the new regulations on for-profit programs.
The letter supporting the end of gainful employment rules – signed by 12 House members — charged that regulating for-profit colleges would “harm job creation” and prevent 400,000 people annually from entering the workforce with “new skills.”
“These regulations are a clear example of federal overreach into the affairs of American institutions of higher education,” the letter said.
A report released this month by the National Center for Education Statistics showed the massive growth in for-profit education over the past decade. The ratio of students who attend private nonprofit institutions to for-profit schools like the University of Phoenix has fallen from 3-to-1 to 2-to-1 in the 2000s.
For-profit college enrollment skyrocketed from about 550,000 in 1998 to more than 1.8 million in 2008, according to research published by Campus Progress, a left-leaning organization that advocates for for-profit regulations.
APSCU helped lead the charge against regulations aimed at for-profit schools, many of them with national online programs that have attracted millions of new students during the economic downturn that began in 2008.
Larry Penley, former president of Colorado State University (CSU) and a critic of gainful employment rules, said the government’s crackdown on for-profit colleges would hinder the schools’ use of educational technology that has attracted nontraditional students.
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