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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.

According to an opposition leader, the businessman Agarwal's pledge last week of $1-billion to set up Vedanta University, in the South Indian state of Orissa, is a gimmick to divert attention from his corrupt mining deal with the state's government. The $1-billion pledge, which if realized would be the largest gift ever made to a higher-education institution, is intended to create a multidisciplinary elite university for 100,000 students that would open in 2008.