Inside Higher Ed: For-Profit Colleges Open Another Front

The January 24, 2011 edition of Inside Higher Ed reported that after months of fighting the Obama administration’s efforts to regulate the for-profit sector, on Friday, “The Association of Private Sector Colleges and Universities (formally the Career College Association) filed a lawsuit in federal court, asking a judge to invalidate three of the dozen-plus new rules that the Education Department issued in October to ensure the integrity of federal financial aid programs. The three disputed rules relate to state authorization of colleges, incentive compensation for recruiters, and misrepresentation of colleges’ programs and results.”

According the article, “The three rules challenged by the career college group have also generated their share of concern among some nonprofit college officials, since they apply broadly to all institutions whose students receive federal financial aid.”

The lawsuit asks the courts to block the federal agency from enforcing three regulations that it claims “go far beyond lawful regulatory efforts.”

Federal plans to require vocationally oriented colleges to prove that they prepare students for “gainful employment” will likely be opposed in future lawsuits when those rules are released.

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