Maryland-based 2U, one of the largest providers of online higher education, is suing the Education Department over heightened regulation of its contracts with colleges and universities.
The department initially gave institutions until May to comply but has since pushed the date back to September. Failure to comply puts colleges at risk of losing access to federal loans and grants. The department invited comments on the guidance to flesh out areas that are unclear or could be improved and received more than 1,000 letters.
The Education Department declined to comment on the pending litigation. But a spokesperson for the agency said the guidance is “intended to provide clarity on existing requirements regarding companies that work with colleges around the administration of federal student aid.
in exchange for a share of the tuition revenue from those who enroll violates the federal ban on incentive compensation.Congressional Democrats wrote Education Secretary Miguel Cardona in December urging him to conduct a formal legal review of whether tuition revenue-sharing arrangements are permissible.
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