Siding With For-Profit Colleges, Judge Says Rule on Recruiter Pay Is Flawed

October 7, 2014
  • Industry News

A federal judge has sided with for-profit colleges in a lawsuit over an Education Department rule limiting the commissions colleges can pay to student recruiters, agreeing that the agency failed to justify parts of the rule.

The ruling, by Judge Rosemary M. Collyer of the U.S. District Court for the District of Columbia, is the latest wrinkle in a long-running fight between the Association of Private Sector Colleges and Universities and the department over the "incentive compensation" rule.

Thursday’s decision sends the rule back to the department for a second time, two years after an appeals court asked the agency to substantiate its ban on paying bonuses to recruiters based on graduation rates and to respond to concerns about the rule’s impact on student diversity.

Read more at The Chronicle of Higher Education: http://chronicle.com/article/Siding-With-For-Profit/149195