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

There’s no way policymakers can adequately address inequality in the United States overall without recognizing the effects of the racial wealth gap.

There seems to be a method to the madness of winner-take-all capitalism.

Last year, the top 25 hedge fund managers took home, on average, almost $1 billion each – and even run-of-the-mill portfolio managers at large hedge funds averaged $2.2 million each.

New Scottish media platforms are thriving as the region's eclectic, creative, evolving, non-corporate and critical news landscape looks to grow even further into a media challenging the status qu

Jeff Clements, money in politics, Powell Memo, Corporations Are Not People, Citizens United, Free Speech for People

After Citizens United, says Jeff Clements, “I felt that I couldn't just leave it at that, that democracy is really on the line, that the country is on the line – I don't think it's an exaggeration to say that humanity is on the line.”

There’s never been a better time to organize a general strike in the U.S. than right now, with both corporate owners and political leaders pillaging public resources for their own private gain.

Posted 4 days 18 hours ago

Now rolling into to its fourth month, the video game consumer movement known as #GamerGate continues to evolve in scope and focus as it seeks to advocate for greater ethical standards in gaming journalism.

Posted 5 days 15 hours ago

New Scottish media platforms are thriving as the region's eclectic, creative, evolving, non-corporate and critical news landscape looks to grow even further into a media challenging the status qu

Posted 2 days 18 hours ago

The provision was literally written by Citigroup executives.

Posted 4 days 18 hours ago
Jeff Clements, money in politics, Powell Memo, Corporations Are Not People, Citizens United, Free Speech for People

After Citizens United, says Jeff Clements, “I felt that I couldn't just leave it at that, that democracy is really on the line, that the country is on the line – I don't think it's an exaggeration to say that humanity is on the line.”

Posted 2 days 18 hours ago

Due to welfare cutbacks, rising food prices and unlivable wages, a growing number of people in Britain are having to resort to food banks as a means of staving off hunger.

Warren's rousing speech, condemning both Congress and one of the prime banks that has corrupted it, came late Friday night as legislators struggled to pass legislation to prevent a government shutdown.

A report released last month explores the often overlooked digital risk environment for NGOs and other groups.

Dozens of land conservation bills, which were added to a defense spending bill approved on Friday, protect more than 1 million acres of national parks, wilderness areas, and wild and scenic rivers.

Red Cross responders say there was a ban on working with the widely praised Occupy Sandy relief group because it was seen as politically unpalatable.

Sign Up