Immediately after the President was elected, borrower advocates and lawmakers expressed concern about what would happen to the current regulations aimed at holding for-profit colleges accountable. On Tuesday, their concerns were validated. The Education Department announced that it would delay and renegotiate two of the previous administration’s signature regulations: the first aims to penalize programs whose graduates’ loan payments exceed a set percentage of their earnings, while the second simplifies the process for borrowers who say they have been defrauded by their colleges.

Today’s higher education legal landscape in the USA is characterised by a wave of issues, including inflated employment rates for recent graduates, inflated starting salaries, as is the case with law schools and business schools, and the employment formula linked to federal grants and loans recipients, as is the case with for-profits. This wave will bring more lawsuits.

A major Chinese education company has paid thousands of dollars in perks or cash to admissions officers at top U.S. universities to help students apply to American schools. According to eight former employees the company’s services didn’t end there. Employees engaged in practices such as writing application essays for students, altering recommendation letters and modifying grades on high school transcripts. The company’s success in gaining access to leading American colleges underscores how people on both sides of the Pacific are hungry to capitalize on Chinese students’ desire to study in the United States.

In 2013, New York’s attorney general, sued the ‘Trump University’ for-profit company, asserting it had intentionally misled over 5,000 students into paying up to $35,000 for seminars and mentorship programs. The fraud lawsuit resurfaced this week, when a state appeals court unanimously denied a bid by the university’s owner to throw out the litigation. Two former Trump University students have also filed two separate class-action civil lawsuits in California.

The Department of Homeland Security arrested 21 people Tuesday on charges that they had recruited thousands of students through the promise of fraudulently obtained visas. At the center of the arrests was the University of Northern New Jersey, the brainchild of federal agents who masqueraded as representatives of a for-profit university to ensnare the recruiters.

Twenty-one people have been arrested after US authorities set up a fake university to expose immigration fraud. Officials said the accused knew that the University of Northern New Jersey did not exist, but they were unaware it was a ruse run by immigration agents. The defendants acted as brokers for more than 1,000 foreigners who sought to maintain student and work visas, prosecutors said. Most foreign nationals involved in the scheme came from China and India.

The Obama administration is highlighting growing concern over soaring United States student debt by forming a new enforcement unit to crack down on illegal behaviour by higher education institutions. The Department of Education said that it would create the unit, having taken action recently against several colleges for profiting illegally from students with deceptive marketing and inappropriate federal loans.

The US government administration is creating a new office at the U.S. Department of Education dedicated to investigating and punishing illegal activity at colleges and providing debt relief to defrauded federal loan borrowers. Officials on Monday announced a new “enforcement unit” that will be charged with investigating misconduct at colleges, imposing administrative actions against colleges and resolving student loan debt relief claims linked to fraud. The administrative reshuffling will speed up and improve the quality of the department’s investigations of wrongdoing.

A doctoral student in higher education at the University of Michigan at Ann Arbor, conducted a sociological research about corruption in higher education. Based on his examination of the 2009 Illinois admissions scandal, which centered on the university’s use of a separate, hidden admissions process to ease the entry of applicants with ties to politicians, donors, and university officials, his paper concludes that administrative misconduct frequently is "an organizational problem that demands organizational solutions."