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

GMO profiteers have an unusual marketing strategy – while most companies brag about their product, the GMO industry spends hundreds of millions to hide their product.

The foreclosure crisis of this century, fueled by racially discriminatory predatory lending, forced hundreds of thousands of residents out of the city.

New figures reveal that public banks are safer for depositors, allow public infrastructure costs to be cut in half – and provide a non-criminal alternative to a Wall Street cartel caught in a laundry list of frauds.

Tens of thousands will be demonstrating at more than 2,200 Walmart locations across the country, calling for a minimum wage of $15 an hour for Walmart workers and access to consistent, full-time work.

A new Financial Times survey shows the majority of UK voters believe that instead of using harsh public cuts to peel back the deficit, other forms of extravagant government spending should be abolished.

They meet behind closed doors, at five-star hotels, away from the prying eyes of the public.

Posted 6 days 11 hours ago

This was the biggest scandal to ever hit the land recordation system in this country, and those who were responsible should be held accountable.

Posted 4 days 11 hours ago

Over 300,000 Internet users contributed to our crowdsourced vision for free expression online in the 21st century. What matters most to the Internet community? Watch this animated video to find out.

Posted 4 days 11 hours ago

The worldwide protest sentiment is not going away anytime soon.

Posted 4 days 11 hours ago

The Nordic nation of 5.6 million has been at the forefront of wind power innovation since the 1890s, when one of its leading scientists, Poul la Cour, began testing turbines.

Posted 5 days 6 hours ago

According to new research, the richest one-hundredth of one percent of Americans now hold over 11 percent of the nation’s total wealth – a higher share than the top .01 percent held in 1929 before the Great Crash.

While celebrating the historic anniversary in Prague on Monday, thousands of Czechs called for President Zeman to step down.

Raleigh resident Bibi Bowman says the fact that a police officer called her and told her to take down a Facebook post is an invasion of her privacy and a thinly-veiled attempt to intimidate her into silence.

Proposed legislation would eliminate erratic scheduling and extend protections to part-time employees.

The plan submitted by the city's emergency manager protects banks, gives away public resources, and has no method to revitalize the city.

Sign Up