For-profit colleges partly win appeal against education dept

June 5 Tue Jun 5, 2012 12:54pm EDT

June 5 (Reuters) - An association of for-profit colleges partly won an appeal against the U.S. department of education on rules relating to deceptive advertising and distance education.

The Association of Private Sector Colleges and Universities (APSCU), which represents more than 1,500 schools, had sued the department after rules to rein in fraudulent practices at for-profit colleges were finalized.

For-profit colleges include Apollo Group, Strayer Education and ITT Educational Services.

The U.S. District Court for the District of Columbia in July upheld rules on recruiter compensation and deceptive advertising but tossed out a rule requiring online schools get authorization in every state they have students.

In a ruling on Tuesday, the appeals court said the department's regulation on deceptive advertising exceeded the Higher Education Act's limits by allowing it to take actions against colleges without procedural protections, among others.

It also upheld APSCU's challenge of the distance education rule, saying the rule is not a logical outgrowth of the department's proposed rules.

It upheld the state authorization rule.

APSCU and the education department were not immediately available for comment.

The case is In re: Association Of Private Sector Colleges And Universities vs. United States Department Of Education, Et al, U.S. Court of Appeals, District of Columbia Circuit, No: 11-5174.

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