• New HEA Regulations Signal Major Changes in the Regulatory Landscape for Admission and Financial Aid Officers
  • June 15, 2011
  • Law Firm: Jones Day - Cleveland Office
  • The past year brought substantial change to the regulation of for-profit institutions of higher education. In late 2010, the Department of Education (“DOE”) issued new regulations intended to ensure the “integrity” of programs administered under Title IV of the Higher Education Act of 1965, as amended (“HEA”). These regulatory changes came after significant investigation by the Senate Health, Education, Labor and Pensions Committee and an influential, though heavily criticized, study of for-profit colleges by the United States Government Accountability Office. Among the most controversial subjects addressed by the new regulations are 1) incentive compensation for admission and financial aid officers, and 2) misrepresentation of information to students, prospective students, and others. In fact, these aspects of the new regulations are the subject of a pending lawsuit against the DOE brought by the Association of Private Sector Colleges and Universities (“APSCU”). What follows is a brief overview of the new regulations regarding incentive compensation and misrepresentation, which become effective in July 2011, as well as the APSCU suit.