AP101104144171Three House members are planning to introduce an amendment to prevent the Department of Education from de-funding for-profit college programs that leave students saddled with debt they can't repay.
Republican Rep. John Kline, the chair of the House education committee, has joined forces with co-sponsors GOP Rep. Virginia Foxx of North Carolina and Democratic Rep. Caroline McCarthy of New York to block what's known as the "gainful employment" rule--a provision that sets a ceiling for loan default rates on institutions qualifying for federal education funds. The department's ability to implement the rule would be defunded in an amendment to the 2012 budget, according to McCarthy's spokesman Shams Tarek.
The education department is facing a firestorm of political pressure from both the for-profit higher ed industry and civil rights groups--pursuing opposing agendas--over efforts to regulate the kinds of career programs that for-profit institutions specialize in.
In addition to tracking federal money to student default rates, the gainful employment rule would withhold funds from institutions whose graduates have forbiddingly high debt-to-income ratios. The rule has languished as the department sifts through more than 90,000 letters from the public weighing in on its enforcement.Read More »from House reps introduce amendment to block for-profit crackdown