A federal judge on Tuesday declined to put on hold the Obama administration’s decision last year to terminate the nation’s largest accreditor of for-profit colleges. U.S. District Court Judge Reggie Walton denied a motion for a preliminary injunction filed by the Accrediting Council for Independent Colleges and Schools after hearing about three hours of testimony. Michael Stratford has more.
– Judge Walton, a George W. Bush appointee, said ACICS had not demonstrated there was “a substantial likelihood” it would prevail on the merits of its lawsuit nor did it prove it would suffer “irreparable harm” without the injunction.
– Roger Williams, interim president of ACICS, testified that the Education Department’s termination of ACICS had “severely damaged” the organization’s reputation. “We expect to lose a lot of money,” Williams said, citing the loss of revenue from colleges seeking accreditation.
– Ron Bennett, an Education Department official in the Office of Federal Student Aid, testified that eight of 237 ACICS-accredited colleges have already successfully obtained accreditation elsewhere. One ACICS school, Sage College, based in California, has shut down, Bennett said. The remaining colleges face a Mar. 12 deadline to begin the process of obtaining alternative accreditation.
– Walton did not rule on a separate motion by a group of state attorneys general who are seeking to join in the defense of the ACICS termination decision. Involvement in the case by state AGs could prove significant if the Trump administration seeks to stop defending the lawsuit or tries to settle with ACICS.
– But it’s not clear whether the Trump administration will change course. Stephen Buckingham, the government attorney representing the Education Department, did not indicate that the Trump administration planned to change its position in court. Buckingham said the department intended to file a motion for summary judgment in the case.