Domestic, For-Profit, Legislation, Recruitment, Required - Written by on Friday, July 15, 2011 11:15 - 0 Comments

Federal District Court Upholds Two of Three For-Profit Regulations.


Not Judge Collyer

For-Profit Schools: 1, Department of Education: 2. Federal District Court upholds two of three Obama Administration For-Profit regulations.

For-Profit Schools win one

On state authorization, Judge Rosemary M. Collyer ruled in favor of the Association of Private Sector Colleges and Universities who sued the DOE. Collyer said the DOE did not provide enough comment period and notice to the industry before enacting the regulation which would require schools to have at least one physical presence in a state to be accredited there.

Department of Education wins two

On compensation, Judge Collyer upheld the new regulations aimed at muzzling questionable recruiting practices:

“While APSCU is understandably frustrated at its inability to provide merit-based pay increases to recruiters based on the easiest to measure and, arguably, most logical merit metric — numbers recruited — that does not mean the regulations are themselves impermissible interpretations of the [Higher Education Act] or otherwise unreasonable, especially in light of congressional concerns with recruitment practices,” the judge wrote regarding the incentive compensation rule.

In regards to misrepresentation, the judge upheld the leash placed on schools by the new regulation which would curb false advertising:

And while the judge conceded that the regulation defining the ways in which colleges can be found to misrepresent their institutions may be far from perfect, citing several flaws in wording and logic, she concluded that the department was well within its authority to enact it. “Just because it may be possible for the department to run amuck in unreasonable and punitive enforcement does not mean that the regulations, as drafted, will ineluctably lead to such a loss of balance and reason,” Collyer wrote.

APSCU plans to pursue further appeal against the compensation and misrepresentation regulations.


Read a legal perspective: Legal Times, full Collyer opinion.

More coverage at Inside Higher Ed.

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