Administration Tries Again With Regulations Targeted at For-Profit Colleges

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.”

Article Tabs

Spain’s 15-M Movement made the move from city squares to the halls of power on Sunday in municipal and regional elections that saw the ruling People’s party battered at the ballot box.

The movement against rigged corporate trade is going to have to escalate its campaign if we are to hold the majority and stop Fast Track for the Trans-Pacific Partnership.

March Against Monsanto, Monsanto, GMOs, genetically modified organisms, genetic seeds

Saturday marked the third annual March Against Monsanto, as thousands of people in at least 48 countries protested the American biotech giant.

Plains All American, Surfrider Foundation, oil spill, Santa Barbara,

New details have emerged about Plains All American's long history of generating similar disasters.

The U.S. ranks among the most unequal countries, surpassed only by Turkey, Mexico and Chile.

worker-owned cooperatives, worker-owned businesses

New York City is home to the country’s largest worker-owned co-op, Co-operative Home Care Associates, which employs some 2,300 workers, mainly immigrant and minority women in the South Bronx.

Posted 5 days 9 hours ago

This week Eleanor Goldfield visits activist artists in New York City

Posted 6 days 14 hours ago
surveillance programs, surveillance art, Bearing Witness: Surveillance in the Drone Age, NSA, Edward Snowden

A new exhibition opening Thursday in San Francisco depicts the depth and breadth of spying, listening, recording and gathering data.

Posted 6 days 14 hours ago
Plains All American, Surfrider Foundation, oil spill, Santa Barbara,

New details have emerged about Plains All American's long history of generating similar disasters.

Posted 4 days 12 hours ago
Joseph Stiglitz, Bernie Sanders, new populism, democratic populism, wealth inequality, income inequality, Next System Project

It's time to begin the careful work of knitting together broad, pluralistic conceptions of what a transformed system might look like.

Posted 5 days 9 hours ago
Trans-Pacific Partnership, TPP, corporate trade deals, whistleblowers, fast track, Trade Promotion Authority

Letter signed by more than 250 firms demands greater transparency and says "dangerously vague" language would criminalize whistleblowers.

surveillance programs, surveillance art, Bearing Witness: Surveillance in the Drone Age, NSA, Edward Snowden

A new exhibition opening Thursday in San Francisco depicts the depth and breadth of spying, listening, recording and gathering data.

This week Eleanor Goldfield visits activist artists in New York City

rate rigging, banking fines

Five giant banks, including JPMorgan Chase and Citigroup, were fined roughly $5.7 billion, and four of them pleaded guilty to U.S. criminal charges over manipulation of foreign exchange rates.

Joseph Stiglitz, Bernie Sanders, new populism, democratic populism, wealth inequality, income inequality, Next System Project

It's time to begin the careful work of knitting together broad, pluralistic conceptions of what a transformed system might look like.

Sign Up