For Third Time, APSCU Fails to Get Courts to Strike Down Incentive Compensation Rule

Career College Central Summary:

  • The Association for Private Sector Colleges and Universities (APSCU) has now failed three times to convince federal judges to strike down a U.S. Department of Education regulation that has forced for-profit colleges to overhaul their recruiting policies.
  • But that is not stopping the for-profit college lobbying group from continuing to call on the Education Department to stop enforcing the rule.
  • At issue is a regulation that eliminated the “safe harbors” that Bush administration officials put in place in 2002 to help for-profit schools skirt a long-standing federal law that prohibits colleges from compensating recruiters based on their success in enrolling students.
  • The Obama administration published the final rule in October 2010.
  • Ever since, APSCU has been on a crusade to gut the incentive compensation regulation.
  • In its original challenge to the rule in 2011, APSCU portrayed its members as innocent victims of an administration on a crusade against their institutions for no apparent reason.
  • “The final regulations are not the product of a reason decision-making process,” the career college group wrote in its initial complaint.
  • “Their adoption dramatically affects private sector schools and their students, yet they are unsupported by factual evidence or logical reasoning.”

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