Business

US Court Upholds Tough Rules on For-Profit College Loans

Published

11 years ago

June 24, 2015

The entrance to the DeVry University in Miramar, Fla. is seen in this Tuesday, Nov. 24, 2009. Many Pell grant recipients are using their money to attend for-profit schools. (AP Photo/J Pat Carter)

ANNE FLAHERTY, Associated Press

WASHINGTON (AP) — A federal court has ruled in favor of tough new regulations aimed at career training programs, dealing a major blow to the for-profit college industry.

In an opinion released Tuesday, the U.S. District Court for the District of Columbia ruled the Education Department has the right to demand that schools show their graduates make enough money to repay their student loans. The Education Department announced its plan last fall as a way of weeding out fraudulent colleges that were targeting low-income students because of their ability to receive federal student loans, grants and military benefits.

Under the new rules, which go into effect July 1, a program has to show that the estimated annual loan payment of a typical graduate does not exceed 20 percent of his or her discretionary income or 8 percent of total earnings. The administration said about 99 percent of the training programs that will be affected come from the for-profit sector, although affected career training programs can come from certificate programs elsewhere in higher education.

Programs that don’t pass the new “gainful employment” standards risk losing access to federal money.

The Association of Private Sector Colleges and Universities, a trade group representing 1,400 for-profit colleges, sued to stop the rules from taking effect on July 1. APSCU argued that the regulations were at odds with existing law, and that the administration had arbitrarily and unfairly devised them as a way to rein in for-profit colleges.

In his opinion, U.S. District Judge John Bates dismissed the industry group’s argument entirely, ruling that each piece of the regulation should remain intact.

“Of course, the association might not agree with the department’s explanations,” he wrote at one point in the 37-page ruling. “But that alone does not make them irrational, arbitrary, or capricious.”

APSCU General Counsel Sally Stroup said in a statement the trade group is disappointed in the court decision and considering its options.

“Indeed, as numerous commentators have observed, the primary impact of the regulation will be to deprive hundreds of thousands of students of access to higher education,” Stroup wrote. “That is inconsistent with the congressional plan under the Higher Education Act, unlawful and bad policy.”

Education Secretary Arne Duncan called the ruling a “win” for students and taxpayers, and urged lawmakers to stop fighting against the regulations.

“Every student who enrolls in college of any kind deserves a fair shot at a degree or credential that equips them for success,” he said in a statement. “We’ll continue to fight until that’s a reality.”

The for-profit industry has among the highest student loan default rates and lowest graduation rates in higher education, and now the government is looking at footing the bill in what has become a major consumer bailout. Earlier this month, Duncan said the government would make it easier for students who attended the now-defunct Corinthian Colleges to erase their debt.

About $3.6 billion in federal loans has been given to these students since 2010. That potentially puts the taxpayer on the hook for that amount, although officials say it’s unlikely that every loan will qualify for relief.

The latest rule was the administration’s second attempt at ensuring student loans go to programs that help people find jobs. The first rule was blocked by a judge in 2012 that said the regulations were too arbitrary.

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OP-ED: AB 1349 Puts Corporate Power Over Community

Since Ticketmaster and Live Nation merged in 2010, ticket prices have jumped more than 150 percent. Activities that once fit a family’s budget now take significant disposable income that most working families simply don’t have. The problem is compounded by a system that has tilted access toward the wealthy and white-collar workers. If you have a fancy credit card, you get “presale access,” and if you work in an office instead of a warehouse, you might be able to wait in an online queue to buy a ticket. Access now means privilege.

Published

1 week ago

January 9, 2026

Oakland Post

Bishop Joseph Simmons, Senior Pastor, Greater St. Paul Baptist Church, Oakland

By Bishop Joseph Simmons, Senior Pastor, Greater St. Paul Baptist Church, Oakland

As a pastor, I believe in the power that a sense of community can have on improving people’s lives. Live events are one of the few places where people from different backgrounds and ages can share the same space and experience – where construction workers sit next to lawyers at a concert, and teenagers enjoy a basketball game with their grandparents. Yet, over the past decade, I’ve witnessed these experiences – the concerts, games, and cultural events where we gather – become increasingly unaffordable, and it is a shame.

These moments of connection matter as they form part of the fabric that holds communities together. But that fabric is fraying because of Ticketmaster/Live Nation’s unchecked control over access to live events. Unfortunately, AB 1349 would only further entrench their corporate power over our spaces.

Power over live events is concentrated in a single corporate entity, and this regime operates without transparency or accountability – much like a dictator. Ticketmaster controls 80 percent of first-sale tickets and nearly a third of resale tickets, but they still want more. More power, more control for Ticketmaster means higher prices and less access for consumers. It’s the agenda they are pushing nationally, with the help of former Trump political operatives, who are quietly trying to undo the antitrust lawsuit launched against Ticketmaster/Live Nation under President Biden’s DOJ.

That’s why I’m deeply concerned about AB 1349 in its current form. Rather than reining in Ticketmaster’s power, the bill risks strengthening it, aligning with Trump. AB 1349 gives Ticketmaster the ability to control a consumer’s ticket forever by granting Ticketmaster’s regime new powers in state law to prevent consumers from reselling or giving away their tickets. It also creates new pathways for Ticketmaster to discriminate and retaliate against consumers who choose to shop around for the best service and fees on resale platforms that aren’t yet controlled by Ticketmaster. These provisions are anti-consumer and anti-democratic.

California has an opportunity to stand with consumers, to demand transparency, and to restore genuine competition in this industry. But that requires legislation developed with input from the community and faith leaders, not proposals backed by the very company causing the harm.

Will our laws reflect fairness, inclusion, and accountability? Or will we let corporate interests tighten their grip on spaces that should belong to everyone? I, for one, support the former and encourage the California Legislature to reject AB 1349 outright or amend it to remove any provisions that expand Ticketmaster’s control. I also urge community members to contact their representatives and advocate for accessible, inclusive live events for all Californians. Let’s work together to ensure these gathering spaces remain open and welcoming to everyone, regardless of income or background.

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Oakland Post: Week of December 31, 2025 – January 6, 2026

The printed Weekly Edition of the Oakland Post: Week of – December 31, 2025 – January 6, 2026

Published

2 weeks ago

January 2, 2026

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Big God Ministry Gives Away Toys in Marin City

Pastor Hall also gave a message of encouragement to the crowd, thanking Jesus for the “best year of their lives.” He asked each of the children what they wanted to be when they grow up.

Published

3 weeks ago

December 29, 2025

Oakland Post

From top left: Pastor David Hall asking the children what they want to be when they grow up. Worship team Jake Monaghan, Ruby Friedman, and Keri Carpenter. Children lining up to receive their presents. Photos by Godfrey Lee.

By Godfrey Lee

Big God Ministries, pastored by David Hall, gave toys to the children in Marin City on Monday, Dec. 15, on the lawn near the corner of Drake Avenue and Donahue Street.

Pastor Hall also gave a message of encouragement to the crowd, thanking Jesus for the “best year of their lives.” He asked each of the children what they wanted to be when they grew up.

Around 75 parents and children were there to receive the presents, which consisted mainly of Gideon Bibles, Cat in the Hat pillows, Barbie dolls, Tonka trucks, and Lego building sets.

A half dozen volunteers from the Big God Ministry, including Donnie Roary, helped to set up the tables for the toy giveaway. The worship music was sung by Ruby Friedman, Keri Carpenter, and Jake Monaghan, who also played the accordion.

Big God Ministries meets on Sundays at 10 a.m. at the Mill Valley Community Center, 180 Camino Alto, Mill Valley, CA Their phone number is (415) 797-2567.