While new federal rules for for-profit colleges are stalled, for-profit colleges face more state-level regulation, reports Stateline.
Maryland’s Legislature has passed legislation eliminating all state aid to for-profit schools, banning commissions or bonuses for student recruiting, and requiring for-profit schools to contribute to a fund to protect students if any college in their group breaches a contract. Gov. Martin O’Malley says he’ll sign the bills.
California will restrict for-profit colleges’ eligibility for Cal Grants, state-funded college scholarships.
Nebraska legislators are expected to approve a bill streamlining the regulatory process for all colleges, for-profit or not, and increasing accountability once colleges are approved.
However, tighter controls on the accreditation of for-profit colleges failed this year in North Dakota.
Bills regulating for-profit colleges have been proposed in Arizona, Iowa, Idaho, Massachusetts, Minnesota, Missouri, Mississippi, North Carolina, New York, Texas and Utah. In addition, attorneys general in Florida, Illinois, Iowa and Kentucky have launched investigations of for-profit schools.
“It is my job to ensure that businesses — and these schools are businesses — are following Kentucky’s consumer protection laws,” Kentucky Attorney General Jack Conway wrote in an op-ed for the Lexington Herald-Leader.