New rules pending for US for-profit education

June 17, 2010

The US Department of Education is scheduled to release stricter rules for for-profit academic institutions, aimed at protecting students and safeguarding taxpayers’ investment in federal student aid. The rules would hold for-profits accountable for ensuring graduates are prepared for gainful employment, that students are well informed and well served, and that the more than $20 billion received by these institutions in student financial aid is being well spent. The strongest sanction would see federal student financial assistance eliminated for programs whose graduates are expected to carry a high student-loan debt relative to their expected earnings. The majority of regulations, including one regarding a stricter ban on incentive compensation for college recruiters, will be announced on Friday, but the "gainful employment" issue has been postponed.  The Chronicle of Higher Ed