ACICS-Accredited Colleges Meet Federal Deadline

January 10, 2017

The U.S. Department of Education last month finalized its decision to terminate the Accrediting Council for Independent Colleges and Schools, a controversial national accrediting agency that oversaw Corinthian Colleges, ITT and other failed for-profits.

Before the end of December, all remaining ACICS institutions filed paperwork with the department to retain their federal aid eligibility for 18 months while seeking a new accreditor, the department said this week. The roughly 245 colleges collectively received $4.76 billion in federal aid during 2015.

Ted Mitchell, the U.S. under secretary of education, said in an interview that he was encouraged by the transition process so far for ACICS-accredited colleges.

“The institutions are taking their responsibilities seriously,” he said. “We’re working to make this transition as successful as possible.”

Most of the colleges have begun seeking approval from the Accrediting Commission of Career Schools and Colleges, a national accrediting agency. Michale McComis, the commission’s executive director, said last week that 180 ACICS-accredited institutions have formally initiated the process. He expects that number to grow to 210 colleges by the end of January.

Some experts on for-profit higher education have predicted that substantial numbers of ACICS-accredited institutions will fail to find a new agency home within 18 months. One higher education lawyer said that challenge remains, and that the department had overplayed its celebration of ACICS institutions successfully completing their federal aid extension paperwork.

Mitchell, however, said the process of getting roughly 245 institutions to sign provisional Program Participation Agreements was complex and required collaboration between the feds and ACICS-approved colleges. The agreements include monitoring and reporting requirements the department said are intended to protect taxpayers and students.

In addition, Mitchell said he was confident that well-run institutions among the group “will have the time to secure accreditation.”

ACICS has sued to block the department’s decision to de-recognize the accreditor. A judge last month denied a request from ACICS for a temporary injunction.

It’s unclear if the incoming Trump administration would be able to overturn the department’s move to eliminate ACICS, or if it would seek to try.