For-Profit Schools Say US Budget Deal Fails To Delay New Rules

An Obama administration effort to tighten federal financing for-profit education companies appears to have overcome a lobbying campaign, as congressional negotiators have decided against including language blocking the planned regulations in a budget deal, the group that represents such schools said Monday.

Strayer Education Inc. and ITT Educational Services Inc. are among the companies affected by the decision.

Negotiators are putting the finishing touches on the final budget package, which is expected to be unveiled later Monday or early Tuesday and is to be voted on this week in both chambers of Congress.

"Today, the Senate missed an opportunity to protect two million nontraditional students nationwide and ensure that they can continue to access a full spectrum of higher education that includes private sector colleges and universities," Harris N. Miller, the president of the Association of Private Sector Colleges and Universities, said in a statement. He said that Congress should have supported "pushing the pause button on this rush to misguided regulation."

A Republican spokesman said that the decision to omit language blocking the regulations couldn’t be confirmed.

Education Secretary Arne Duncan has advanced rules designed to prevent students from piling on student loans without finding employment in their fields. His proposal would make for-profit schools provide statistics showing that students are getting jobs that match up with their degrees.

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