Dive Brief:
- Strict regulations on for-profit colleges, put in place by Massachusetts Attorney General Maura Healey, were largely upheld by a federal judge this week, but two were scaled back on first amendment grounds.
- Inside Higher Ed reports the judge upheld seven out of nine state regulations that were challenged by the Massachusetts Association of Private Colleges and Schools, but said restrictions on the way for-profits could discuss credit transferability and degree completion times were unconstitutional.
- On the first issue, the judge struck down a rule that requires for-profits to say they are not aware of other schools that accept their credits on transfer beyond those with which they have formal transfer agreements, and on the second issue, the judge gave these colleges free reign to advertise completion times that are shorter than the median because they are possible.
Dive Insight:
The Obama administration has been particularly aggressive in holding for-profit higher education institutions accountable for their student outcomes, passing new regulations and raising awareness about bad actors that has caused a drop in enrollment and profits across the sector. States attorneys general have followed up with investigations and lawsuits of their own, along with the Federal Trade Commission and the Consumer Financial Protection Bureau.
The Massachusetts ruling, in striking down two small portions of much broader regulation, may embolden other states to take similar steps to restrict the latitude of for-profit colleges. But the reauthorization of the Higher Education Act by a Republican-controlled Congress may offer some relief for the sector.
