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Saturday, October 15, 2005
Boon for online colleges tucked in Katrina relief - Samuel G. Freedman, CNET News
For most of its 45 pages, U.S. Senate Bill 1715 proposes practical and compassionate assistance for the many pupils and educators affected by Hurricane Katrina. If enacted, it would provide more time for displaced students to repay federal loans, flexibility for teachers to be hired outside the home states where they are licensed, and financial assistance for schools that enroll homeless and disabled children, among the most vulnerable of survivors. Inconspicuously tucked on Page 26, however, lies a potential bonanza for the profit-making online colleges that have been a persistent source of fraud for several decades. With a few words unintelligible to all but the most alert insiders--"Notwithstanding Section 102(a)(3) of the Higher Education Act"--the legislation would lift one of the key federal safeguards governing such "proprietary colleges." That provision bars federal student loans and grants from colleges that enroll more than half their students in online divisions or offer more than half their courses through distance education.
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