This report is in a series examining the troubled history of for-profit higher education, from the problems that plagued the post-World War II GI Bill to the reform efforts undertaken by the George H. W. Bush administration to the regulatory relapse under George W. Bush. From President Dwight Eisenhower to President George H. W. Bush, Republican administrations witnessed and recognized the hazards of an unrestrained profit motive in education and took action to establish regulatory and legislative guardrails to prevent abuses. However industry-friendly President George W. Bush appointees soon started to deregulate the for-profit sector, undermining and undoing some of the previous consumer protection provisions that had been signed into law by prior presidents. Deregulation by the Bush administration and the GOP-controlled Congress, including the introduction of safe harbors that allowed for-profit recruiters to skirt the incentive compensation ban, led to widespread recruitment of marginal students who were unprepared for college programs. So too did the dramatic growth of giant, publicly traded for-profit chains, which faced market pressures to show constant growth in enrollment, fueling a return of the misleading advertisements and job placement claims that plagued the for-profit sector. How is it that, in little more than a decade--from the presidency of George H. W. Bush to George W. Bush--the GOP leadership would go from being for-profit higher education's most vigilant watchdog to enabling its worst predatory excesses? [For the fourth report in the series, "When President George H. W. Bush "Cracked Down" on Abuses at For-Profit Colleges," see ED614466.]