This is the first time I have really had legitimate concerns over this form of policy movement of the Department of Education:
Officials of For-Profit Colleges See Department’s Proposed Rule Changes as ‘Aggressive’
By Jennifer Gonzalez
Washington
Any thoughts that the U.S. Department of Education planned only to tweak existing regulations that affect for-profit colleges and other higher-education sectors were dashed on Monday when the agency released a draft of proposed revisions to a panel of negotiators. Many people in higher education, especially those in the for-profit sector, were taken aback at the substantial changes proposed, with some calling the move “aggressive” and “surprisingly strong.” The panel, whose members include federal officials and representatives of institutions and associations affected by the regulations, has been charged with re-examining 14 rules in a process known as negotiated rule-making.
Among the department’s proposed changes are eliminating the 12 “safe harbors” adopted in 2002 to clarify a ban on incentive compensation for student recruiters. The safe harbors specify types of compensation plans that do not violate the ban. Other proposed changes deal with assuring the integrity of “ability to benefit” testing procedures, defining a high-school diploma, and determining how institutions ensure gainful employment for their students.
Ripples in the Markets
By far, the most significant change to come from the department is the proposal to eliminate the safe harbors.
Consumer advocates and admissions officers from traditional colleges have urged the department to do away with the safe harbors, arguing that the exemptions, which allow colleges to pay enrollment-based commissions under certain circumstances, encourage recruiters to sign up unqualified students. Officials of for-profit colleges and lobbyists favor keeping the safe harbors, saying they provide much-needed clarity on whether specific types of payments are in compliance with the law. Read the rest of this entry »

