The US Department of Education has launched a review of the prohibition on incentive compensation for college recruiters, which was put in place to prevent predatory practices in the recruitment of students. The review will examine whether the prohibition is still necessary and effective in achieving its intended goals, or if changes should be made to the rule.
The prohibition on incentive compensation for college recruiters was established in 1992 and was designed to prevent colleges and universities from using financial incentives to lure students into enrolling in their institutions. The rule applies to all postsecondary institutions that participate in federal student aid programs.
The Department of Education’s review will consider whether changes to the rule are necessary in light of changes in the higher education landscape over the past few decades, such as the rise of online education and the increased use of technology in the recruitment process. The review will also examine the potential impact of any changes to the rule on students, colleges and universities, and taxpayers.
The Department of Education is seeking input from stakeholders, including students, educators, institutions, and consumer advocacy groups, to inform its review of the prohibition on incentive compensation for college recruiters. The review is part of the Department’s broader efforts to improve access to higher education and ensure that students are able to make informed choices about their educational options.
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