WASHINGTON (Reuters) – A group of for-profit schools on Friday filed a lawsuit against the federal government on Friday to stop implementation of three costly new rules.
The rules were part of a larger package of new regulations being imposed on the for-profit sector, which has been accused of churning out poorly educated students with large debts.
The Association of Private Sector Colleges and Universities (APSCU), which represents more than 1,500 for-profit schools, filed the lawsuit in the U.S. District Court for the District of Columbia asking the court to toss out the rules, which are due to go into effect on July 1.
The rules are to stop deceptive advertising by schools, to bar recruiters from being paid based on how many students they enroll and to require states to authorize post-secondary schools for their students to be eligible for federal loans.
The lawsuit did not challenge the yet-to-be-finalized and most controversial of the reforms, known as the "gainful employment" rule.
That rule would require schools to show that students are paying back federal loans or can do so. Students at schools that fall short would be barred from receiving federal loans, which would cripple many schools.Answer Question
Answer by twinsplus2more at 3:29 PM on Jan. 21, 2011
Answer by TARARENEE at 3:30 PM on Jan. 21, 2011
Answer by missanc at 3:39 PM on Jan. 21, 2011
Answer by NotPanicking at 3:44 PM on Jan. 21, 2011
What I don't understand is why people don't research these colleges before they do sign up. I mean if you are going to spend $30,000 just for an Associate degree and $60,000+ for a Bachelor's degree, it looks like you would want to get your money's worth. I mean, you wouldn't buy a car or house for that much without researching it, doing inspections etc.
Answer by JeremysMom at 3:46 PM on Jan. 21, 2011
Answer by twinsplus2more at 7:51 PM on Jan. 21, 2011