Dive Brief:

• The U.S. Department of Education has decided to release the names of colleges and universities under close scrutiny, which affects their access to student aid.
• Last week, Inside Higher Ed reported that the department refused to identify the schools following a request for that information and, after publication, it announced the department had changed course.
• By Friday, Inside Higher Ed reporters had received a partial, redacted list that showed 30 of 36 schools facing the most severe restrictions of “heightened cash monitoring” were for-profit schools, and they were most often cited for accreditation problems or a lack of financial responsibility.

Dive Insight:

The Department of Education’s decision to make the list of schools under heightened cash monitoring public will certainly damage the reputations and business models of the colleges and universities included. Especially since the information is coming out after an initial refusal from the department, it likely will get significant attention. Several for-profit institutions have closed in recent years after being restricted from federal student aid funds in this way.

Some critics say the Department of Education wields its powers of scrutiny arbitrarily and therefore should not publicly name the institutions being monitored. However, consumer advocates will be happy to see students and parents getting access to more information about the financial health of their preferred institutions before sending their tuition payments.