For-Profit Schools Sue the U.S. Secretary of Education

For-profit colleges have been taking a lot of criticism lately for their questionable marketing practices and deceptive methods to get students to qualify for financial aid. Now these schools are fighting back and have launched a lawsuit against the U.S. Department of Education.

The Association of Private-Sector Colleges and Universities has filed this lawsuit to undo the new regulations that are set to take place on July 1 citing them as unconstitutional. The rules have been put in place to stop recruiters from being paid based on the number of students they enroll, and to eliminate deceptive advertising by schools. The new regulations are part of a large package designed to stop schools from producing students that are poorly educated and in a large amount of student debt.

One element of the new regulation that was not challenged by the lawsuit was the gainful employment rule. This rule will require schools to show that students either are current on paying back their loans, or that they will be able to when the time comes. These upcoming reforms have already taken effect on share prices at for-profit college parent companies like the Apollo Group which runs the University of Phoenix. Despite the lawsuit, the Department of Education stands by the rules. They believe that the new regulations are the best possible way to protect students and taxpayers in the long run.

Via Chicago Breaking Business








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