On Nov. 30, the U.S. Department of Education proposed revisions to the regulations on for-profit colleges. Revisions are being evaluated by a panel of officials and representatives from institutions.

It is engaging in a process called “negotiated rule-making,” and will reexamine the 14 rules that dictate higher education regulations.

The revisions surprised representatives from the schools, some of which called them “aggressive.”

Some of the proposals include changing the way institutions can compensate student recruiters. Currently, student recruiters are exempt from rules restricting compensation.  These “safe harbors” have come under fire from admissions officers from traditional colleges who argue that the exemptions encourage recruiters to sign up unqualified students. However, admissions officers at for-profit colleges favor the safe harbors, saying they provide clarity on whether such compensation is legal.

Other changes proposed by the agency deal with the definition of a high-school diploma, and determining how institutions enable their students to become gainfully employed after graduation.

The negotiating panel met last month for the first of three sessions and will begin its next weeklong session on Nov. 7. A final decision on any revisions in the rules is not expected until 2010.


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