Biden administration gutting online education with new 'harmful' guidance, warn experts, lawmakers

The Biden administration will now be able to crack down on private companies that contract with colleges and universities to help the schools run their online education programs, raising alarm bells among experts and lawmakers who warned the federal government could stifle remote learning for students.

The Education Department issued guidance last month saying online program managers (OPMs), which are outside contractors that recruit students for and operate schools' online academic programs, are officially considered third-party servicers, or entities involved with the administration of "any aspect" of an institution's federal student financial aid.

As a result, these companies can be subjected to stricter federal oversight in a manner that, critics argue, will hurt not only the schools and contractors, but also ultimately the students they serve.