Traditional Higher Education Lobbyists Siding with For-Profit Colleges in Blocking New Federal Regulations!

Dear Commons Community,

ProPublica, the non-profit investigative news service, is reporting that most of the traditional higher education lobbying groups signed onto a recent letter to Congress stating their support for Republican legislation that would block new restrictions on for-profit colleges, as well as undo or weaken other accountability rules for colleges. And a new report on higher education regulation commissioned by the Senate and overseen by the American Council on Education, the leading lobby group for traditional schools, slammed the rules on for-profit colleges as part of a broader critique of the administration’s approach. As reported by ProPublica:

“The Obama administration is set to achieve one of its top domestic policy goals after years of wrangling. For-profit colleges, which absorb tens of billions of dollars in U.S. grants and loans yet often leave their students with little beyond crushing debt, will need to meet new standards or risk losing taxpayer dollars.

But as the July 1 deadline approaches, the troubled [for-profit] industry has been mounting a last-ditch effort to avert or roll back the new rules. And suddenly it’s getting a lift from a set of unlikely allies: traditional colleges and universities.

For years, the higher education establishment has viewed the for-profit education business as both a rival and an unsavory relation — the cousin with the rap sheet who seeks a cut of the family inheritance. Yet in a striking but little-noticed shift, nearly all of the college establishment’s representatives in Washington are siding with for-profit colleges in opposing the government’s crackdown…

This bid for GOP favor may seem counter-intuitive, given that many conservatives view academia as a bastion of pampered liberalism. In reality, the higher education lobby represents an industry as self-interested as any other—the two largest of the its many trade groups reported spending $500,000 on federal lobbying last year—and it spies an opportunity in the deregulatory instincts of the Republican majority.

The gambit underscores one of the under-appreciated truths about lobbying in Washington in an era of divided government: Special interests are often as interested in preserving a favorable status quo as they are in getting government to take an action to their benefit. To that end, gridlock can be a feature to be encouraged, not a bug.

At stake in this case is the roughly $150 billion that the federal government shovels annually into colleges and universities in the form of Pell grants and subsidized loans for students. Current and former higher education regulators say the federal government is obliged to assure that taxpayers are getting results for that spending.

“The higher ed lobby doesn’t want any accountability—they want money, and they want money without limitations, without restrictions, without accountability to anybody outside the academy,” said David Bergeron, who served as Obama’s acting assistant secretary for postsecondary education before joining the Center for American Progress, a Democratic think tank that’s close to the administration…

At least one university president is chiming in against the higher education lobby’s new turn. Louisiana State University Chancellor F. King Alexander said the lobby’s complaints of over-regulation ring hollow. “Naturally, [the lobby groups] love the idea of telling the federal government to get your hands off the money and don’t tell us what to do with it—just put it on the stump and leave,” he said.

But in the case of the for-profit regulations, this approach is short-sighted, he said. The more that fly-by-night for-profit programs soak up federal aid dollars, the less that is left for students at traditional colleges, and the more calls there will be to reduce funding for student aid, he said.

“We’re pouring money into places no one’s ever heard of before,” Alexander said. “We’re not going to have any more federal aid unless we have a better handle on who’s getting it.”

Tony

 

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