Last year the federal Education Department began drafting new regulations to govern for-profit higher education institutions following a report that found the the schools misled students about graduation and job placement rates to get them to enroll–often paying their way with state and federal loans. That effort has stalled in the face of opposition from the industry and Congress.
So far this year, 17 states have introduced bills on for-profit colleges. Among the toughest: A measure in Maryland that would eliminate all state aid to for-profit schools, ban commissions or bonuses for student recruiting, and make all for-profit schools in the state contribute to a fund to protect students. The bill has passed the legislature and is expected to become law.