Court Strikes Down U.S. Requirement on State Approval for Online Programs

July 12, 2011

WASHINGTON -- A federal court today invalidated a recently implemented U.S. Education Department regulation that requires colleges and universities that operate online programs to seek approval from every state in which they enroll students in those programs. The U.S. District Court for the District of Columbia, ruling in a lawsuit brought by the Association of Private Sector Colleges and Universities on behalf of its for-profit-college members, found that the Education Department had not given sufficient notice that it planned to include online programs in the requirement, which represented a major shift in its approach. The court upheld the other two regulations that the career college group challenged in its lawsuit: those that changed the rules governing incentive compensation for recruiters and misrepresentation of colleges' programs and results.

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