Readers of this Blog won't be surprised to learn that last the US Department of Education quietly shelved the revised "gainful employment" regulations initiated by the Obama Administration.
This, I think, is just the first step in reversing the course of the DOE with regard to the for-profit sector of higher education.
You will recall that the Obama Administration eviscerated several key players in the for-profit arena. Most notable was the demise of Corinthian Colleges, which left thousands of its students stranded with big student loans and no school to attend. ITT was also put out of business with top execs under indictment. And a petition by Apollo Group, parent of the University of Phoenix, to be privatized by a group of investment capitalists sat idle on the outgoing secretary's desk.
Requiring the for-profit schools to demonstrate that their students graduate and get good jobs is the price they are asked to pay in return for all the student-loan money that keeps these enterprises afloat. Absent these regulations, these businesses can go right back to churning students through their programs and pocketing the federal loan dollars as tuition (aka profits).
While billionaire Betsy DeVos ascended to the DOE throne with virtually no track record regarding higher education, her vocal advocacy and financial support for charter schools in the K-12 arena led me (and of course others) to speculate that she will be a good friend to the for-profit sector in higher ed as well.
This shelving of the "gainful employment" regs appears to be the first indication that she will be meeting that expectation.
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