Ed Department fails to reach agreement on most new regulatory proposals
Natalie Schwartz
March 18, 2022
Dive Brief:
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The U.S. Department of Education failed to reach agreement this week with key higher education representatives on the Biden administration’s proposals for several new regulations, including those that would heavily affect the for-profit sector and monitoring of colleges’ financial health.
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The Ed Department capped off three months of negotiated rulemaking on this set of regulations with a wide contingent of higher ed, including representatives for nonprofit institutions, for-profit colleges, student veterans and consumer advocates. The agency discussed seven regulatory proposals with the groups but only reached consensus on new 90/10 and ability to benefit rules, which both govern federal financial aid.
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Because the Ed Department reached consensus on a 90/10 rule, it is bound — with few exceptions — to use the agreed-upon language for that regulatory proposal. For those that didn’t obtain consensus, the agency has broad power to keep or alter the language it put forth during negotiated rulemaking when it formally proposes new regulations.
Dive Insight:
The Ed Department’s positions during the negotiated rulemaking sessions reflect the Biden administration’s desire to crack down on for-profit colleges. Several of the agency’s proposals would tighten regulations governing proprietary colleges and further limit how much of their revenue can come from federal financial aid.
