For-Profits And New Regulations
New regulations formally proposed by the Education Department last week intend to crack down on higher education institutions. The two most controversial provisions, known as "incentive pay" and "gainful employment," predominantly affect for-profit schools. The proposed regulations will reinforce a ban on compensating admissions recruiters based solely on success in securing student enrollment, i.e. incentive pay. An earlier draft of the gainful employment rule would cut federal aid to some for-profits whose graduates paid more than 8 percent of their salary to service their student-loan debt. Details on the final metric for gainful employment are forthcoming: The Education Department decided to work on it further to "get it right," after receiving a lot of industry pushback.
"This is about accountability and protecting students," Secretary of Education Arne Duncan said in a statement.
Are the proposed rules in the best interests of students? Should the Education Department stick with an income-to-debt-service ratio for the gainful employment provision?
"This is about accountability and protecting students," Secretary of Education Arne Duncan said in a statement.
Are the proposed rules in the best interests of students? Should the Education Department stick with an income-to-debt-service ratio for the gainful employment provision?
RESPONDED ON JUNE 21, 2010 7:35 AM
Rules Necessary -- But Just A First Step
President and CEO, UNCF
The proposed rules couldn’t be more timely and they couldn’t be more necessary.
It is sad that there are those for whom national needs are nothing more than opportunities to exploit and victimize the people whose need and vulnerability are the greatest. Unfortunately, that is the case with the bundle of predatory practices targeted by the proposed regulations the Department of Education issued last Friday and the Senate HELP Committee’s hearings that Sen. Tom Harkin has called for later this week.
UNCF feels a special responsibility toward the students and families who are being victimized by the fast-buck proprietary schools at which the
