For-profit schools hit back as ED finalizes regulations

Duncan has received a series of letters from members of Congress opposing a for-profit crackdown.
Duncan has received a series of letters from members of Congress who oppose a for-profit crackdown.

The U.S. Education Department (ED) will take longer than expected to formulate new regulations for for-profit colleges, and private-sector school officials expect about 1,000 students to speak out against the government’s measures at a rally planned for Sept. 29 in Washington, D.C.

For-profit colleges have campaigned hard against the “gainful employment” rule, which would cut off federal aid to college vocational programs with high student debt levels and poor loan repayment rates. They’ve lobbied Congress, purchased newspaper ads, and helped students and others register complaints with ED.

The government was to publish its final rules by Nov. 1, but ED officials announced a new timeline on Sept. 24, saying sections of the plan would be ready by Nov. 1 and the remaining portions will be published in early 2011.…Read More

Proposed federal rules crack down on for-profit schools

For-profit colleges are bringing in record amounts of federal aid money, according to government officials.
For-profit colleges are bringing in record amounts of federal aid money, according to government officials.

The Education Department proposed much-anticipated regulations July 23 that would cut off federal aid to for-profit college programs—including many of the nation’s largest online schools— if too many of their students default on loans or don’t earn enough after graduation to repay them.

“Some proprietary schools have profited and prospered but their students haven’t, and this is a disservice to students and to taxpayers,” Education Secretary Arne Duncan said in a briefing with reporters. “And it undermines the valuable work, the extraordinarily important work, being done by the for-profit industry as a whole.”

To qualify for federal student aid programs, career college programs must prepare students for “gainful employment.”…Read More

ED looks to crack down on misleading college recruiting

Duncan said ED's proposed rules would increase colleges' accountability to students.
Duncan said ED's proposed rules would increase colleges' accountability to students.

Some of the nation’s largest online colleges could be barred from tying recruiters’ pay to the number of students they enroll if the Obama administration’s new list of rules for for-profit institutions becomes federal policy.

The administration’s set of 14 proposed guidelines for for-profit colleges—announced June 16—was created in response to widespread student complaints of deceitful recruiting practices at some of the most profitable institutions.

Many of the proposals aim to ensure that federal aid is distributed only to students who are qualified to take college classes.…Read More

Oops! We could not locate your form.