WASHINGTON — At least 1,500 students from for-profit colleges chanted in front of the Capitol in Washington on Wednesday to protest a proposed regulation that would limit their access to government grants and loans.
The rally preceded a Senate hearing today that will examine whether the schools misled students about their employment prospects after graduation. Education Secretary Arne Duncan on Sept. 24 delayed issuing the "gainful employment" rule to early 2011 after receiving 91,000 comments, the most ever on an education issue, according to department officials.
Duncan's decision to postpone the regulation until after the Nov. 2 election shows that the industry's pressure is having an impact, said Charles Gabriel, an analyst with Washington-based Capital Alpha Partners, which advises institutional investors on government trends and regulation. The regulation would require for-profit colleges to show that their students get well-paying jobs or lose access to federal funds.