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Saturday 11 auguSt 2018

DeVos proposes another rollback on for-profit college rules

By COLLIN BINKLEY cess, said the gainful em-
The Trump administration ployment rules prevent-
plans to roll back another ed students from getting
major Obama-era rule that swamped with loans and
was created to police the had already spurred pro-
for-profit college industry, grams to improve.
according to a proposal is- "The administration put its
sued by the Education De- cards on the table today,
partment on Friday. and it's clear that it has
Education Secretary Betsy little interest in protecting
DeVos said the gainful em- students or taxpayers from
ployment regulation should excessive, unaffordable
be scrapped entirely, argu- student debts," Kvaal said.
ing that it wasn't backed But the news was wel-
up by research and creat- comed by some in the
ed burdensome reporting for-profit college industry,
requirements for schools. which fiercely opposed the
The rule sought to punish rule under Obama.
for-profit college programs Steve Gunderson, presi-
that left graduates with dent of Career Education
heavy debt compared to Colleges and Universities,
their incomes the industry's biggest lob-
DeVos' proposal represents bying group, said the pro-
the Education Depart- posal widens transparency
ment's second planned roll- and "could be the most sig-
back of a major Obama- nificant consumer protec-
era rule in a matter of tion for all college students
weeks. in all colleges and all pro-
On July 25, DeVos pro- grams."
posed changes to the so- "Now is the time to move
called borrower defense beyond ideological at-
rule to toughen the process tacks on any one sector
by which defrauded stu- of higher education and
dents can get their loans establish a uniform com-
erased, saying it had be- mitment to transparency of
come too easy for students outcomes that can stand
to skip out on their debt. the test of time," he said.
The rules were part of the The for-profit industry has
Obama administration's In this June 5, 2018, file photo, Education Secretary Betsy DeVos testifies during a Senate Subcom- suffered steep enrollment
mittee on Labor, Health and Human Services, Education, and Related Agencies Appropriations
crackdown on for-profit hearin on Capitol Hill in Washington. losses for years, forcing
colleges, which was fueled Associated Press some chains to close doz-
by widespread complaints ens of campuses or shutter
of fraud against chains and relevant data when before it can be finalized. high-stakes test of purport- all together. Many blamed
including Corinthian Col- making important deci- Arguing against the regula- ed program performance." their woes on the Obama
leges and ITT Technical sions about their educa- tion, DeVos' proposal says Opponents were quick to administration and the
Institute. Both chains col- tion post-high school," she it was "more burdensome attack the rollback on Fri- tightened regulations it im-
lapsed under pressure from said. "That's why instead of than previously anticipat- day, including some from posed. But since Donald
Obama officials. targeting schools simply by ed" and that officials found the Obama administration, Trump brought his business-
Under the 2014 gainful their tax status, this adminis- "troubling inconsistencies" saying it loosens account- friendly approach to the
employment rule, college tration is working to ensure in the way job placement ability and allows shoddy White House, the industry
programs could be cut off students have transparent, rates were calculated and programs to keep their has seen a shift in its favor.
from federal funding if the meaningful information reported. doors open. Several former industry ex-
average debt ratio of their about all colleges and all DeVos also questioned John B. King Jr., who was ecutives have gained pow-
graduates stayed above a programs." the debt ratio that schools Obama's education sec- erful roles within the Educa-
certain limit for two out of In early 2017, the Education were required to meet. The retary in 2016, called the tion Department, including
three straight years. Department found that rule gave programs a pass proposal "outrageous and Julian Schmoke Jr., a for-
The rule also required more than 800 programs as long as a typical gradu- irresponsible." mer dean for DeVry Univer-
schools to publicize debt bound by the gainful em- ate's debt didn't exceed 8 "By withdrawing the gainful sity who now leads a unit
and earnings data for their ployment rules, or about percent of his or her total employment regulations, that investigates fraud, and
programs, which aimed to 10 percent, were failing earnings, a debt threshold the Trump administration is Robert Eitel, a former law-
help students avoid pro- to meet its debt threshold. borrowed from the mort- once again choosing the yer for Bridgepoint Educa-
grams with poor outcomes. But before any programs gage industry. interests of executives and tion who serves as a senior
But DeVos said that, in- lost funding, DeVos de- But in the same study that shareholders of predatory counselor to DeVos.
stead of punishing schools, layed the rule last year and the Obama administration for-profit higher education Critics have said the hirings
her department plans to moved to rewrite it. cited in support of that fig- institutions over protecting suggest favoritism toward
give more information The Education Department ure, the authors warn that students and taxpayers," for-profit colleges, but in-
to students by publishing estimates that revoking the it "has no particular merit said King, who is now presi- dustry officials insist they
earnings data for programs rule will add $5.3 billion in or justification" as a stu- dent and CEO of the non- aren't getting special treat-
at all colleges and universi- federal costs over the next dent debt ceiling. DeVos profit Education Trust. ment and say the admin-
ties, not just those in the for- decade. Department offi- cited that warning, saying James Kvaal, president of istration has barred them
profit industry. cials will gather public input it raises questions about us- the nonprofit Institute For from direct meetings with
"Students deserve useful on the proposal for 30 days ing the figure as a "critical, College Access and Suc- the former executives.q