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As our Education Department released its regulations this month, it was received with a plethora of commentaries. These regulations were designed to prepare students for gainful employment through vocational programs.

Singling out of for-profit schools for scrutiny was strongly criticized by leaders and supporters of these schools. Republicans in Congress were mostly vociferous about this criticism even as the gentle new rules were appreciated and welcomed by Wall Street analysts carefully watching this sector.

Congressional Democrats on the other hand, did not publicly criticize the department. However, they were evidently not satisfied with the regulations having expected a harder stand. Now let’s look at the gainful employment rules. If you carefully look at them, these rules represent a game changing, powerful shift in the way higher education is looked at by the Federal government.

The outcome measure or average income of the graduate is measured with the student loan debt burden or student expenditure in this direct academic program measurement attempt by the federal policy written by the agency.

For the moment, these rules and approach applies only to private nonprofit colleges, vocational non-degree programs and non-liberal-arts programs offered by for-profit colleges. For-profit sector called this an effort by the government to kill the sector and they unleashed a string of lobbying campaign.

The attitude and behavior of the department did not help either. A strong anti-for-profit bias was evident with the way the administration was allied with consumer advocacy groups and also in its anti-for-profit tone in the Senate campaign. Education Department officials continue to maintain their stand that the aim of these regulations was specifically to bring about reform in all college sectors. 

The base of Republican support in Congress was expanded by for-profit colleges as they were helped by the wooing of lawmakers and minority organizations by colleges and also by the above mentioned perception.

In support of the bill, 58 the united Republican majority was joined by 58 Democrats when a measure to block usage of Federal funds by the Education Department to implement gainful employment rules was voted for in February by the House of Representatives.

Many legal observers viewed lawsuit threats and this political reality to block these rules as credible. They pushed the Obama administration to show that draft regulation critic’s objections had been seriously considered.

Arne Duncan, our Education Secretary repeatedly stressed on the fact that the officials had taken a reasonable and thoughtful approach after listening to everyone’s views before unveiling these rules.

Ultimately, the gainful employment rules were unveiled and published formally in the Federal Register on 1st June which is seen to be hugely watered down and softened. The department accepts and admits this.

Many skeptics and critics who had earlier strongly criticized the department gave them credit for these concessions even as many for-profit college officials continued to criticize the department saying the rules are unfair and not called for. So, as usual, there are two sides to the coin and it remains to be seen how this rule will bring about a change.