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?
5 Responses
RESPONDED ON JUNE 21, 2010 10:44 AM
Do It Carefully and Get It Right
Senior Vice President, U.S. Chamber of Commerce
RESPONDED ON JUNE 21, 2010 11:55 AM
Don't Know Much (But I Sure Paid Much)
President, Teaching That Makes Sense
-- Eliza Krigman, NationalJournal.com
RESPONDED ON JUNE 22, 2010 9:18 AM
Put Away the Cookie Cutters
R-Minn., Senior Republican, Committee on Education and Labor, U.S. House of Representatives