It was speculated that Republican gains in Congress last November could stall the Senate’s aggressive investigation of the for-profit higher education industry and sweeping new Department of Education that are set to go into effect July 1. While bipartisan action in the House did some of the regulations, particularly the controversial gainful employment rule, they the final 2011 budget deal.
Meanwhile, as federal efforts to better regulate this run-away industry, which enrolls 10 percent of total students, eats up 24 percent of federal aid and accounts for 45 percent of聽 student loan defaults while making billions of dollars of profit annually, continues, several states, including and , have launched their own investigations. Today, it has been reported that Attorneys General from at least 10 states will embark on a of the industry.
Adding to pressure facing the industry is widespread media coverage, including investigative efforts from the , , and , among others. Even has addressed the topic.
While the for profit higher education industry lobbying effort is (likely paid for with the federal student aid dollars that, on average, make up over 90 percent of the annual operating budgets for these institutions), mounting scrutiny has already had effect as some of the industry’s largest actors have begun ‘maturing’ some of their ahead of anticipated regulations.
For past OPBlog posts on this continuing story see:
