Coalition for Educational Success Asks U.S. Department of Education to Halt Rulemaking Until Inspector General Completes Investigation

WASHINGTON--()--Following a news report that the Inspector General of the U.S. Department of Education is investigating the role Wall Street short-sellers played in development of the Department’s gainful employment regulations, Coalition for Educational Success Managing Director Penny Lee released the following statement:

“The U.S. Department of Education needs to pay close attention to the bright red stoplight now facing its proposed gainful employment regulation. The Inspector General must complete her investigation into the role of short-sellers in the regulatory process before any more action is taken.

“Materials made public, through FOIA requests, show a disturbing pattern of Senior Department officials regularly communicating with Wall Street short-sellers who had ‘bet short’ on career college stocks and brought little to the table in the way of higher education expertise, but stood to gain billions of dollars financially from greater regulation of career colleges.

“There are simply too many troubling and unanswered questions about the process through which this proposed regulation was developed and the possible release of material nonpublic information to short-sellers.

“This latest news report follows on the heels of a letter from 118 members of Congress to President Obama requesting that the Department withdraw its proposed gainful employment regulation and instead, work with Congress to enact meaningful reforms to higher education.

“We strongly support this recommendation from Congress and hope that the Department realizes that it is irresponsible for them to proceed with so many storm clouds hanging over this regulatory process.”

For more information on the involvement of short sellers in the regulatory process visit: www.ed-success.org/FOIA

To view a map of the relationships and contacts between U.S. Department of Education officials and short-sellers visit: www.ed-success.org/map

The Coalition for Educational Success

The Coalition for Educational Success includes many of the nation's leading career colleges, serving more than 350,000 students at 478 campuses in 41 states. Career colleges provide training for students in 17 of the 20 fastest growing fields. The Coalition advocates for policies that support wider access to higher education, particularly for non-traditional students including full-time workers, workforce returners, working parents, minorities and veterans.

Contacts

The Coalition for Educational Success
Noah Black, 202-295-8797
Noah.black@harbourgrp.com

Contacts

The Coalition for Educational Success
Noah Black, 202-295-8797
Noah.black@harbourgrp.com