Court Victory for For-Profit Colleges

On October 2nd, for-profit schools won another round in the back-and-forth lawsuit over limiting the commissions for-profit colleges can pay recruiters. Federal Judge Rosemary M. Collyer (U.S. District Court for the District of Columbia) sided with the Association of Private Sector Colleges and Universities against the Department of Education. This is the second time the U. S. District Court heard the case, after a session in appeals court.

Three years ago, the Department of Education tightened rules on a federal ban on commissions for college recruiters and financial-aid administrators in an effort to eliminate hard pressure tactics from schools. Counsel for the Association of Private Sector Colleges and Universities argued that overturning 12 regulation safe harbors (that permitted certain types of compensation) was arbitrary and unwarranted. The Association is defending the rights of schools to recruit students who often don’t qualify for traditional colleges and universities. The decision in the case will require the Department of Education to further justify its actions to shut down several types of commissions on compensation for recruiting.