Elsewhere online
January 06, 2015

For-Profit Herzing U. Switches to Nonprofit Status

Herzing University, a for-profit career college with some 6,000 students and campuses in eight states, has converted into a 501(c)(3) nonprofit institution, the Milwaukee Journal Sentinel writes. The Milwaukee-based university's move, announced in a brief statement Friday, comes in the wake of new federal rules for commercial colleges that were fought by the industry.

The U.S. Department of Education now requires for-profit colleges to demonstrate that they are preparing students for "gainful employment" and sets caps on students' annual loan payments to the institutions. David Dies, executive secretary of the Wisconsin's Educational Approval Board, which oversees commercial universities, said the new federal regulations, and the opportunity for students to tap state financial aid available only at nonprofit and state colleges, likely played a role in the university's shift.