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Very soon, brand new regulations will be announced by the Obama administration for colleges that are a part of the Federal student aid programs. This move will now reshape the definition of course credits, payment pattern for admissions recruiters and launching of career training programs.

There are a total of 13 regulations developed over a span of a year, recently circulated among law makers. According to the rules that will be in place from the month of July, there will be a significant higher education Federal oversight expansion. 

Colleges offering non-degree vocational programs and for profit colleges will now have to meet stringent standards in order to qualify for aid according to this 14th proposal. This proposal is facing opposition from the for-profit colleges, understandably.

According to Arne Duncan, the Education Secretary, students will now get value for what they pay and will be able to be well prepared for jobs. As the government pays a huge amount towards loans and grants to students, it is necessary for certain rules to be set in place, according to education officials.

Some of the provisions in the new set of rules include –

The ban on incentive compensation for admission recruiters based purely on securing enrollment will not enjoy any exceptions. This is aimed at reducing or completely eliminating misleading and aggressive recruitment practices. 

Before launching career training programs, colleges that offer non-degree programs and for-profit schools must necessarily inform the government. Certain schools must also take formal government approval for this. This is aimed at preventing abuses resulting from the “gainful employment” rule.

Credit hour is defined as two hours of weekly homework and one hour class time per course unit. According to officials, schools have the flexibility to establish measurements in an equal manner and this definition is purely for financial aid eligibility purposes.

According to the Association of Private Sector Colleges and Universities President Harris N. Miller, the provision detailed for career training programs seems to be in response to industry concerns. This organization represents the for-profit sector. Miller went on to say that the Federal stance seems to be easing out with a more pragmatic approach.

He expressed concern over the rule that specifies the incentive compensation. This he said may potentially lead to many litigations and uncertainty. Representing university presidents and college presidents, the American Council on Education expressed deep concerns over the credit-hour issue.

According to Terry W. Hartle, the council’s senior vice president, the credit hour definition has been federalized. Stronger incentive compensation rule was praised by Committee on Health, Education, Labor and Pensions chairman, Sen. Tom Harkin. He lauded the rules saying that tax payer dollars invested in for-profit colleges now enjoy adequate protection.

Increased scrutiny of vocational programs by Federal government was criticized by the House Education and Labor Committee top Republican, Rep. John Kline. He expressed concerns that schools may be inhibited by the regulations to a great extent.  Reactions to the rules are thus varied but it remains to be seen what the overall effect would be in the long run.