Home News California Challenges Feds’ Laxer Oversight of For-Profit Schools – Courthouse News Service

California Challenges Feds’ Laxer Oversight of For-Profit Schools – Courthouse News Service

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California’s lawsuit claims a new Trump administration rule will make it easier for “predatory” for-profit colleges to receive federal funds while offering low-quality educational programs.

SAN FRANCISCO (CN) — In one of its final lawsuits against the Trump administration, California on Friday challenged two provisions of a new U.S. Education Department rule that relaxes oversight of “predatory” for-profit colleges.

The “Distance Learning and Innovation” rule makes for-profit schools automatically eligible to receive federal funds if the Education Department fails to act on a recertification application within 12 months.

It also eliminates a cap that previously forbade for-profit institutions from outsourcing more than 50% of their courses to other schools. California says the removal of this cap means students can be forced to take all of their classes at a school they never enrolled in. It also enables “predatory institutions” to operate as “portals,” funneling students into low-quality, online programs, the state complains.

“One of the many shameful legacies of the Trump Administration is the extreme lengths taken by its Department of Education to expedite public money to predatory for-profit colleges,” California Attorney General Xavier Becerra said in a statement Friday.

The rule was finalized on Sept. 2, 2020, long before former Education Secretary Betsy DeVos resigned from her post earlier this month.

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