Compensation in the Spotlight

The Education Department takes another look at how colleges pay recruiters

Compensation in the Spotlight 1

Julie Albertson is one of the plaintiffs in a false-claims lawsuit that accuses the U. of Phoenix of illegally compensating its recruiters for enrolling students.

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Julie Albertson is one of the plaintiffs in a false-claims lawsuit that accuses the U. of Phoenix of illegally compensating its recruiters for enrolling students.

Investment analysts have been on edge since President Obama took office, worried that the new administration would ramp up government oversight of the for-profit higher-education sector. Their fears deepened this spring, when the Education Department announced that it would take a "fresh look" at several rules affecting proprietary colleges.

While the rule-making process is still in the early stages, with formal negotiations set to begin in September, analysts expect the department to