US magistrate judge vacates delay of online universities rule

U.S. Secretary of Education Betsy DeVos illegally delayed a rule requiring online universities to notify their students if they fail to meet accreditation standards, a federal magistrate judge ruled.

Magistrate Judge Laurel Beeler of the Northern District vacated the delay set by the Department of Education and ordered the agency to implement the rule within 30 days.

The department failed to show "good cause" for waiving the "negotiated rulemaking" portion of the Higher Education Act of 1965 when it rescinded the notification rule last July and delayed reissuing it until 2020, Beeler wrote in her summary judgment issued Friday.

By doing so, the department violated the education act and the Administrative Procedure Act, according to the ruling.

The Washington, D.C.-based National Student Legal Defense Network filed the class action last August on behalf of the National Education Association, the California Teachers Association and several student plaintiffs. National Education Association v. DeVos, 18-CV05173 (N.D. Cal., filed Aug. 13, 2018).

In the complaint, the education unions alleged DeVos and the department illegally delayed setting a rule requiring online universities to notify current and prospective students about whether their programs meet state licensing standards or have faced adverse actions, either from the state or accreditor.

The rule was issued in December 2016, during the last weeks of the Obama administration, and scheduled to take effect in July 2018, court documents show.

"I'm gratified that the court agreed that the department illegally delayed the rule and that soon protections will be in place for our clients and for online students across the country," said Martha Fulford, senior counsel for the defense fund.

A U.S. Department of Justice spokeswoman declined to comment.

In a statement, the National Education Association praised the court decision for protecting students' rights and providing state regulators the tools they need to ensure that for-profit universities meet accreditation standards.

"The federal court's decision is a victory for students, transparency and common sense." association President Lily Eskelsen García said in the statement. "We are thrilled that these protections will be there for our members and for all students who enroll in online programs."

The California union echoed the response, calling the ruling "a terrific victory" for the union and its student-plaintiffs, according to spokesman Frank Wells. He chided the department, accusing it of blocking efforts in the past requiring online schools to be forthright about their accreditation status and any past actions taken by either state or accreditation agencies.

"Friday's ruling will help protect students from unscrupulous and predatory online schools," Wells said.