Day: 2010/09/27

Department of Education to the Rescue? Proposed CFR Changes to account for “Program Integrity” and “Gainful Employment”


The lesson I took from this exercise is that Uncle Sam has no neck.


Jerry Kowalski alerted me to a proposed change to the Code of Federal Regulations, (34 CFR Part 668) that just might kill the law school tuition bubble if adopted.  I’d read about the rule change elsewhere, and thought it applied exclusively to for-profit higher education institutions, including a handful of law schools that are at least provisionally ABA-accredited: (Florida Coastal School of Law, Phoenix School of Law, Charlotte School of Law, and John Marshall Law School (the Atlanta, GA one)).[i] From reading the document, it’s unclear as to whether the rule change applies to only for-profit schools or could be interpreted to apply to all law schools.

The DoE’s suspicion of for-profit education is justified, for if you think law schools are scams, wait til you see the outrageous multi-million dollar salaries CEOs of these schools make.  Whether the ones at for-profit law schools make that kind of money, I know not.  Unfortunately, according to the New York Times, resistance to the rule is strong, and I doubt conventional law schools would go along with it.

Aside from for-profit institutions, the proposed rule also refers to “recognized occupations,” specifically:

The proposed regulations are intended to address growing concerns about unaffordable levels of loan debt for students attending postsecondary programs that presumptively provide training that leads to gainful employment in a recognized occupation. (43619, left column)

It confuses me from here: