By: Roy Aker

A bill that would limit the authority of the U.S. Department of Education passed a key committee of the U.S. House of Representatives July 24.

The bill, Supporting Academic Freedom through Regulatory Relief Act, would repeal the department's “gainful employment” rule and would eliminate consumer protection regulations for students.

A number of major associations representing public colleges have declined to endorse the bill — including the Association of Public and Land-grant Universities, which the University of Minnesota is a member of.

Opponents say the bill protects the interests of for-profit colleges by eliminating financial aid regulations that protect students.

A particularly controversial part of the bill would repeal regulations that require colleges and universities to meet benchmarks regarding graduates’ debt-to-income ratios and repayment of student loans.

Currently, schools must meet these requirements in order to be eligible to participate in federal student aid programs. If a school’s graduates have low loan-repayment rates and high debt-to-income ratios, then its federal student aid can be cut off.

In 2012, for-profit college students made up 13 percent of all U.S. college students but accounted for nearly 50 percent of all student loan defaults.

According to campaign records, Rep. John Kline, R-Minn., who co-sponsored the bill, has received donations from numerous Political Action Committees that represent for-profit colleges.

Of his top five campaign donors in 2011-12, three were PACs that represent for-profit colleges including DeVry Inc., Rasmussen Inc. and the Apollo Group — which the University of Phoenix is a subsidiary of.

Capella University and Herzing College were also listed as contributors.

No date has been set for the House vote.