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General Assembly Approves Bill To Regulate For-Profit Colleges

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ANNAPOLIS, Md. (AP) — The Maryland General Assembly has passed a bill that would regulate for-profit colleges.

Sen. Paul Pinsky, D-Prince George’s, said Wednesday he introduced the measure to protect students from aggressive recruitment practices.

The measure, which now goes to Gov. Martin O’Malley, gives the Maryland Higher Education Commission regulatory authority. It prohibits commissions, bonuses or incentive payments for student recruitment. It also creates a Guaranty Fund to reimburse students if the college breaches a contract with a student.

The U.S. General Accounting Office released a report last year that examined 15 for-profit colleges. The report found that four of the colleges encouraged fraudulent practices and all 15 made deceptive or questionable statements to the GAO’s undercover applicants.

(Copyright 2011 by The Associated Press. All Rights Reserved.)

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