Posted on 11/07/2014 8:07:22 AM PST by Citizen Zed
A trade group representing more than 1,400 for-profit colleges has filed a lawsuit against the federal government over regulations aimed at curbing industry abuses.
The group seeks to stop a federal regulation, known as the "gainful employment rule," that was formally put into place last week by the U.S. Department of Education. The rule restricts access to federal student-aid dollars for institutions deemed to have too many students who struggle to pay back their student loans.
The rule is aimed at cracking down on institutions that charge excessive tuition, especially for programs that have little value on the job market. The Department of Education says the regulation could potentially affect up to 840,000 students, and, the trade group says, 3.5 million in the next 10 years. Two million students are currently enrolled in for-profits.
The for-profit colleges depend heavily on federal aid money, and the lawsuit filed Thursday is the latest salvo in a battle that has now stretched over five years and at least one other lawsuit.
(Excerpt) Read more at wvtf.org ...
Are not-for-profit institutions, which also rely heavily on federal student loans, similarly subject to the “gainful employment rule?”
The rule is aimed at cracking down on institutions that charge excessive tuition, especially for programs that have little value on the job market.
Like, say, public universities that offer majors in grievance studies?
The highest paid public university presidents
These guys make almost as much money as a back up guard in the NBA.
They will lose this suit.
No, just for profit schools are subject to the law when many “non profit” schools are just as bad or worse.
If the government applied the employment wage to school loan amount to state and private law schools they would find the same issue. My son has six figure school loans for his law school, but was fortunate to get hired at a salary that allows him to pay his loans. Many of his classmates were not so fortunate and are working in 50k jobs with the same six figure loans.
I know someone who runs a beauty/barber/massage school, and I was shocked to learn that annual tuition is more than a year at a public university.
“that charge excessive tuition, especially for programs that have little value on the job market. “
Women’s studies anyone?
I’ve long maintained that the Student Loan interest rate should be tied to a student’s major and GPA.
Low grades ? Unemployable area of studies ? 20% interest.
4.0 GPA ? Engineering ? 2% interest. . .
But that, of course, would be decried as “unfair”. . .
The school seemed to be a student loan and VA loan mill that pretended to teach career skills. I had to quit, couldn't in good conscience be part of that. Some of my students were Iraq combat vets who I thought were wasting their benefits there.
>> deemed to have too many students who struggle to pay back their student loans.<<
When you’re a for-profit school that advertises heavily during daytime TV, in between Jerry Springer and Disability Insurance commercials, you get exactly what you subsidize.
Bubba Ray won’t be pulling down $60k a year with a certificate in ‘Criminal Justice’ or ‘Sports Management’.
They are going to court to argue they are entitled to handouts from the taxpayer?
Who do they think they are? Al Sharpton?
The tuition at the public university is subsidized heavily by the state. For instance land, buildings and specialized spaces are rent-free to the public university, and they pay no property taxes. The beauty/barber/massage school has to pay all these things, and fill out massive amounts of paperwork. Plus, many states subsidize the university operating expenses.
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