Look Out, For-Profit Colleges, Here Comes the Biden Administration
The new team will likely reinstate restrictions that Education Secretary Betsy DeVos dismantled.
For-profit colleges, which perform poorly for their students on average, have had a good run lately. Under Education Secretary Betsy DeVos, the Trump administration eliminated the gainful employment rule, which blocked schools from federal financial aid if their graduates had too much debt in relation to their earnings. It also did away with borrower defense, which used to absolve students of loan obligations if a school defrauded a student. Meanwhile, the coronavirus pandemic seems to have left for-profit schools unscathed. This fall, undergraduate enrollment in for-profit, four-year colleges has fallen just 0.1% from a year ago, while enrollment in community colleges has fallen 9.5%, according to the National Student Clearinghouse.
Look out, though, the Biden administration is coming. Consider this: