CCA Sends Letter to Rep. Cole in Support of H.R. 3039

September 10, 2003

The Honorable Tom Cole
United States House of Representatives
501 Cannon House Office Building
Washington, DC 20515-3604

Dear Representative Cole:

On behalf of the Career College Association (CCA) and its 1,100 members who educate more than a million students each year for employment in more than 200 occupational fields, I write in support of the "Expanding Opportunities in Higher Education Act of 2003."

This bill continues the direction that Congress began during the last reauthorization in recognition of changes that were occurring in higher education. CCA has tracked those trends and has found that, in most cases, they have accelerated. For-profit higher education has achieved a level of maturity and credibility that requires additional changes to the Higher Education Act of 1965, as amended (HEA). The three key provisions of the proposed bill that we are especially supportive of are those aimed at treating all institutions fairly, namely creating a single definition of higher education, repealing the 90-10 rule and repealing the 50% telecommunications rule.

Combining the current bifurcated definitions of higher education institutions will ensure that all institutions are treated fairly and equitably under the law, and will allow qualifying for-profit institutions to participate in all titles of the HEA. No student should be denied access to the benefits of these HEA titles based on his or her choice to attend an authorized, accredited, and eligible for-profit institution of higher education.

The bill also repeals the 90-10 rule which requires proprietary (for-profit) institutions to derive at least 10 percent of tuition revenues from non-federal sources. This rule is selectively applied to for-profit institutions and creates a barrier to college access for the neediest of students. Earlier this year, CCA commissioned the American Economics Group to conduct a comprehensive study of the effect of the 90-10 rule on students and institutions. The study revealed that 90-10 did not evidence the quality of the institution, but was simply a reflection of the socioeconomic status of the students the institutions enrolled. Repealing the 90-10 rule would create an incentive for institutions not to leave communities comprised of poor, minorities and women because of the relatively heavy usage of financial aid that would otherwise put a school at risk of violating 90-10.


Finally, CCA supports the principles outlined by the Congressional Web-based Education Commission of expanding educational opportunities to more students. Currently, the 50% telecommunications rule limits the number of students and courses a Title IV eligible institution may offer via distance education. By removing unnecessary barriers to distance education, institutions will have the flexibility to increase the use of technology in delivering education, and provide an increasing number of students with new postsecondary options. Expanding the reach of educational programs through distance education will, in the long term, help to create a more highly trained and educated workforce.

CCA applauds you and your colleagues on the House Education and the Workforce Committee for introducing this bill and is proud to offer its support for this important legislative proposal.

Very respectfully,

/s/
Nicholas J. Glakas

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