Utah private college owner sues feds over for-profit status

A Utah-based chain of private colleges is suing the federal Department of Education after being denied nonprofit status.

The Salt Lake Tribune reports the lawsuit filed this week accuses the department of subjecting for-profit schools to “burdensome compliance requirements” when they switch to nonprofit structures.

The complaint was filed by Center for Excellence in Higher Education, which acquired Ogden’s Stevens-Henager College and its sister schools in 2012.

It comes after Education Secretary John King dismissed the center’s request for nonprofit status in an Aug. 11 announcement that suggested it was trying to avoid oversight by changing statuses.

The complaint asks the education department for new participation agreements, acknowledging the schools’ nonprofit operations.

Stevens-Henager President Eric Juhlin says he doesn’t want to jeopardize students’ ability to receive federal tuition assistance.