Read

Search form

Administration Tries Again With Regulations Targeted at For-Profit Colleges

Administration Tries Again With Regulations Targeted at For-Profit Colleges
Mon, 3/17/2014 - by Julianne Hing
This article originally appeared on Colorlines

After courts blocked the Obama administration’s prior attempts to rein in the for-profit college system, the Education Department is back again this week. Late Thursday the Education Department released a revised “gainful employment rule,” which judges schools based on the debt load they leave students with and seeks to crack down on schools that send students and graduates away with tens of thousands of dollars of debt they’re ill-equipped to repay.

“We want to protect students from enrolling in poorly performing programs that leave them with debt they cannot pay and a degree they cannot use,” Secretary of Education Arne Duncan said, Politico reported.

Under the new proposed rules, the Education Department would cut off colleges’ federal student aid eligibility—which often serves as the backbone of revenue for for-profit schools that target low-income students and students of color—if schools fail to meet a certain threshold. Programs would fail if students leave schools with debt loads higher than 12 percent of their incomes and 30 percent of their discretionary incomes. If students have debt-to-income ratios between 8 and 12 percent, schools would be labeled as in “the zone,” and would be required to inform students that they could lose their aid at that particular school. If programs fail these tests two times in a three-year period or stay in “the zone” without moving out of it for four consecutive years their students would become ineligible for federal student aid, the Chronicle of Higher Education reported. The proposed rule will be open to public comment for 60 days.

As it is, for-profit colleges enroll just 13 percent of the nation’s higher education students, but are responsible for a whopping 46 percent of the nation’s student loan defaults, according to The Institute on College Access and Success (TICAS). They enroll a disproportionately high number of students of color. As it is, in the 2010 to 2011 school year, the for-profit college University of Phoenix was the nation’s top producer of black baccalaureates.

The well-intended regulations don’t do enough to protect students who are easy prey for for-profit universities. “Rather than requiring failing programs to limit enrollment until they improve, the draft rule gives bad programs every opportunity to put more students at risk,” TICAS Vice President Pauline Abernathy said in a statement. “And it does not require schools to provide any relief to students who took on debt to enroll in programs that lose eligibility for federal funds.”

Add new comment

Sign Up

Article Tabs

Dakota Access Pipeline, Standing Rock, Alex Garland, North Dakota, Standing Rock Sioux tribe, Standing Rock protests

Here are some of the faces from Standing Rock, in their own words.

Somali-Americans, Somali businesses, Abdul Razak Artan, Ohio State attacks, Somali activism

The Somali-American community was bashed last week after Abdul Razak Artan, a member of Ohio's large and growing Somali community, took part in a car-ramming attack and massive stabbing at the school that left 13 injured.

Dakota Access Pipeline, Standing Rock Sioux tribe, Standing Rock protests, DAPL

"We thank the tribal youth who initiated this movement. We thank the millions of people around the globe who expressed support for our cause. We thank the thousands of people who came to the camps to support us."

Matteo Renzi, 5 Star Movement, Italian populists, anti-EU vote

Matteo Renzi resigned Sunday night after suffering a crushing defeat in a referendum on constitutional reform – signaling a fresh populist blow for the E.U.

Jill Stein, presidential recall, recount votes, voting machines, hacked votes

Hours after dropping its case at the state level, the campaign said late Saturday it will pursue efforts in federal courts to contest the Nov. 8 election in Pennsylvania.

standing rock, oceti sakowin, lakota, cheyenne, sioux, north dakota, NoDAPL, oil pipeline, Army Corps of Engineers, wiyaka eagleman, eviction notice, veterans for standing rock, lake oahe, oahe dam, governor jack dalrymple, blockades, sophia wilansky, rio

This week, in a special episode, we dig into the latest news from Standing Rock.

Posted 6 days 6 hours ago
Dakota Access Pipeline, #NoDAPL, Standing Rock Sioux tribe, Standing Rock protests, Fort Laramie Treaty, Barack Obama, U.S. Army Corps of Engineers, Missouri River

Snow is slowing covering the encampment at Standing Rock, and despite an "emergency evacuation order" issued this week by North Dakota Gov. Jack Dalrymple, the Dakota Access Pipeline protesters aren't leaving.

Posted 5 days 6 hours ago
Austrian elections, populist movemens, rightwing populism, anti-Europe sentiment, Brexit, Donald Trump, Freedom Party, xenophobia

Norbert Hofer of the Freedom Party has a shot to win the presidency and become Austria's first right-wing head of state since the end of World War II.

Posted 4 days 6 hours ago
Dakota Access Pipeline, Standing Rock, Alex Garland, Bakken pipeline, North Dakota

Here are some of the faces from Standing Rock, in their own words.

Posted 3 days 5 hours ago
Fight for $15, living wage, minimum wage hikes, Service Employees International Union, protest arrests, Bernie Sanders, Donald Trump, overtime pay

Scores of demonstrators were arrested on Tuesday as U.S. fast-food and airport workers led nationwide protests for higher pay and union rights in their first major action since Donald Trump was elected president.

Posted 5 days 6 hours ago
standing rock, oceti sakowin, lakota, cheyenne, sioux, north dakota, NoDAPL, oil pipeline, Army Corps of Engineers, wiyaka eagleman, eviction notice, veterans for standing rock, lake oahe, oahe dam, governor jack dalrymple, blockades, sophia wilansky, rio

This week, in a special episode, we dig into the latest news from Standing Rock.

Austrian elections, populist movemens, rightwing populism, anti-Europe sentiment, Brexit, Donald Trump, Freedom Party, xenophobia

Norbert Hofer of the Freedom Party has a shot to win the presidency and become Austria's first right-wing head of state since the end of World War II.

Dakota Access Pipeline, Standing Rock, Alex Garland, Bakken pipeline, North Dakota

Here are some of the faces from Standing Rock, in their own words.

democracies in decline, liberal democracy, Freedom House, Yascha Mounk, Roberto Stefan Foa, deconsolidation, anti-establishment politics, Journal of Democracy

Yascha Mounk, a lecturer in government at Harvard and author of Stranger in My Own Country, says liberal democracies around the world may be at serious risk of decline.

Jill Stein, presidential recall, recount votes, voting machines, hacked votes

Hours after dropping its case at the state level, the campaign said late Saturday it will pursue efforts in federal courts to contest the Nov. 8 election in Pennsylvania.