U.S. Seeks Dismissal of For-Profit College Lawsuit Challenging Regulations

March 24, 2011

The U.S. Department of Justice has asked a federal judge to dismiss a lawsuit in which for-profit colleges challenged the legality of three rules the Education Department has promulgated to tighten regulation of federal student aid. The lawsuit, filed in January by the Association for Private Sector Colleges and Universities, asks the courts to invalidate three of the dozen-plus new rules that the Education Department issued in October; the disputed regulations relate to state authorization of colleges, incentive compensation for recruiters, and misrepresentation of colleges' programs and results. In their brief asking for dismissal of the lawsuit, government lawyers argued that the Education Department was well within its legal authority under the Higher Education Act in promulgating all three rules. The New America Foundation's Higher Ed Watch blog first reported the government's response.

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