As reported in the Milwaukee Journal-Sentinel, the move to non-profit status "comes in the wake of new federal regulations on for-profit schools that drew widespread opposition from the industry." The switch also takes Herzing out of oversight by a Wisconsin state agency.
Herzing has a student enrollment of approximately 6,000 students in campuses across eight states.
New federal regulations implemented by the U.S. Department of Education will require for-profit schools to satisfy measures for "gainful employment" aimed at establishing that career-oriented programs actually are resulting in graduates obtaining well-paying jobs in those fields. The regulations will require schools to demonstrate that their students' annual loan payments back to the school are not more than 20% of their discretionary income or 8% of their total earnings. Failing to meet these "gainful employment" standards can result in schools' losing eligibility for federally funded student loan programs.