Department of Education's Decision on Cassidy-Chevron Partnership Explained

If you're considering online university, you may be interested in this update. The United States Department of Education, which oversees colleges and universities, made an important decision recently. It involves where schools can accept students from and how much money from specific sponsors they can accept.

They replied to a complaint made by Cassidy Law Firm. Cassidy's query brought attention to a law that applies to the '90/10 rule'. This rule limits schools from taking too much money from certain sources. Specifically, they shouldn't get more than 90% of their money from U.S. federal student loan programs.

Some schools were getting around this rule. They are accepting lots of students who are veterans or active members of the military. These students get money from the Department of Veterans Affairs and the Department of Defence. This money isn't included in the 90% limit.

Chevron alleged that Capella University, a popular online university, used this as a loophole. They claim Capella was intentionally enrolling military and veteran students just to get around the 90/10 rule. Doing this would increase their funding by taking advantage of these students' unique financial sources.

The Department of Education decided that schools cannot do this. They are not allowed to intentionally admit students because of their source of funds. They can be penalized if they break this rule.

What Does This Mean For Students?

This decision favors students, as it prevents schools from taking advantage of them based on their financial sources. It makes sure that universities focus on the students' qualifications for admission rather than their source of finance.

Veterans and current military students should feel more secure. The ruling means that schools cannot use them just to get more money. The school must prioritize providing quality education to all of its students.

As a potential student, remember that it's important to understand the rules and regulations of the university you want to attend. That way, you can make informed decisions for your education and future.