Regulatory Enforcement as Policy: Exploring Factors Related to State Lawsuits Against For-Profit Colleges

Abstract

Regulatory enforcement is a policy decision in itself. Given the current federal commitment to deregulate the for-profit college market, state regulations will likely become increasingly important. This study examines the factors contributing to the enforcement of state-level proprietary college regulations. Using event history analysis, the authors test diffusion and innovation theories as potential explanations for patterns of enforcement. The findings suggest that geographic diffusion plays an important role in state lawsuits against for-profit colleges, although the specific mechanisms of diffusion may differ across regions. Moreover, loan repayment rates of for-profit students appear to contribute to the likelihood of a lawsuit being filed as states may seek to intervene when objective metrics suggest that students and state economic interests seem to be harmed. The article also suggests that market factors may play an influential role in state governments enforcing regulations on for-profit colleges.

Keywords

for-profit colleges policy diffusion regulation

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