Education Dept. Delays Rule on Third-Party Vendors Amid Lawsuit

After pushback from colleges and businesses, the Education Department is delaying a regulation that increased scrutiny of third-party vendors. The decision announced Tuesday comes a week after 2U, one of the largest providers of online education, filed a lawsuit challenging the guidance. The Maryland-based company alleged that the federal agency had overstepped its authority and violated procedural laws by issuing the guidance, which expands the definition of third-party servicers to include online program managers like 2U. Online-program managers, which help colleges develop and market online courses, have become a mainstay of higher education as more schools try to extend their reach and bolster revenue.