For-Profit Schools Say US Budget Deal Fails To Delay New Rules
April 11 2011 - 5:41PM
Dow Jones News
An Obama administration effort to tighten federal financing
for-profit education companies appears to have overcome a lobbying
campaign, as congressional negotiators have decided against
including language blocking the planned regulations in a budget
deal, the group that represents such schools said Monday.
Strayer Education Inc. (STRA) and ITT Educational Services Inc.
(ESI) are among the companies affected by the decision.
Negotiators are putting the finishing touches on the final
budget package, which is expected to be unveiled later Monday or
early Tuesday and is to be voted on this week in both chambers of
Congress.
"Today, the Senate missed an opportunity to protect two million
nontraditional students nationwide and ensure that they can
continue to access a full spectrum of higher education that
includes private sector colleges and universities," Harris N.
Miller, the president of the Association of Private Sector Colleges
and Universities, said in a statement. He said that Congress should
have supported "pushing the pause button on this rush to misguided
regulation."
A Republican spokesman said that the decision to omit language
blocking the regulations couldn't be confirmed.
Education Secretary Arne Duncan has advanced rules designed to
prevent students from piling on student loans without finding
employment in their fields. His proposal would make for-profit
schools provide statistics showing that students are getting jobs
that match up with their degrees.
-By Siobhan Hughes; Dow Jones Newswires; (202) 862-6654;
siobhan.hughes@dowjones.com
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