For-profit schools sue to stop new U.S. rules

WASHINGTON Fri Jan 21, 2011 1:12pm EST

WASHINGTON Jan 21 (Reuters) - A group of for-profit schools -- some accused of failing to properly educate students while loading them with debt -- filed a lawsuit against the federal government on Friday to stop implementation of three reforms.

The Association of Private Sector Colleges and Universities, which represents more than 1,500 for-profit schools, filed a lawsuit in the U.S. District Court for the District of Columbia asking for the Education Department to voluntarily withdraw three rules that are due to go into effect on July 1.

APSCU spokesman Bob Cohen said the suit was filed on Friday.

If the department refuses, the group asked for a preliminary injunction stopping them.

The rules are to stop deceptive advertising by schools, to bar recruiters from being paid based on how many students they enroll and to require states to authorize post-secondary schools in order for their students to be eligible for federal loans. (Reporting by Diane Bartz; editing by Andre Grenon)

Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.