For-Profit Colleges Brace For The Biden Administration

New PA-12 — As the for-profit college industry seeks to make inroads with Democratic officials, they’ve hired … [+] former Congressman Jason Altmire, D-Pa. as the head of the leading association. (Photo By Tom Williams/CQ Roll Call)

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For-profit colleges are bracing for the policy changes that are likely to come with President-elect Biden’s Department of Education.

The for-profit college industry has benefited from an administration that has been sympathetic to their interests for nearly four years. In her time in office, Education Secretary Betsy DeVos has rescinded and rewritten regulations from the Obama administration in ways that favor for-profit colleges, reducing accountability and oversight of the companies.

But for-profit colleges are about to enter a new era and can see the writing on the wall. President-elect Joe Biden has pledged to stop for-profit colleges from “profiteering off of students” and has promised to enact policies that hold these colleges accountable. Biden has said he would reinstate the gainful employment rule of the Obama Administration and close the 90/10 loophole the colleges use to avoid federal regulation. And Vice President-elect Kamala Harris likely doesn’t make the industry feel any better given her role in taking on the now-defunct Corinthian College.

Now, the industry is preparing for the new landscape it faces in January. One of the ways they are trying to reposition themselves is by hiring a former Democratic Congressman to lead their primary association and lobbying arm, Career Education Colleges and Universities (CECU).

CECU’s new president is Jason Altmire, a former Democratic Congressman from Pennsylvania who served in the House of Representatives. He replaces former Republican Congressman Steve Gunderson who has led the organization since 2012. Gunderson said in a statement, “With a new Democrat Administration and a new Congress, I believe it is time for a new voice and a new face to lead this important work.”

Altmire’s hiring seems to be very strategic so that for-profit colleges can fight off regualtions that will be harmful. He can rely on existing relationships with lawmakers on both sides of the aisle, as well as his understanding of the legislative process, to navigate these issues.

But as the industry seeks to make inroads with Democratic officials by hiring a former colleague, it’s not clear how successful they will be.

For one, the Democratic caucus in the House has changed quite a bit since Altmire left Congress in 2013. More importantly, the caucus has shifted in its views on for-profit colleges. Many of the members who were hesitant to support some accountability policies targeted at these colleges, have now voiced support for them.

But Altmire’s time in Congress likely will not endear him to many Democrats in Congress, or President-elect Biden himself. That’s because Altmire voted against President Obama’s signature legislation, the Affordable Care Act. Given that Democrats overwhelmingly support the policy now, with many of them wanting to go further, it’s possible they will not view Altmire’s position favorably as he advocates for the for-profit college industry.