The Chronicle of Higher Education
June 24th, 2015
The U.S. Education Department’s gainful-employment rule is one step closer to taking effect.
A federal judge on Tuesday rejected a serious legal challenge,
brought by the Association of Private Sector Colleges and Universities,
to the controversial rule. The lobbying group’s lawsuit
was the highest hurdle remaining for the proposed rule, which will
judge career-oriented programs on their graduates’ ability to repay
their student loans. The rule is slated to take effect on July 1.
The department originally introduced the rule in 2011. The effort was
dealt a major setback a year later, when a section of the rule was
thrown out as a result of an earlier court challenge by the association,
the main lobbying group for for-profit colleges. The group’s second
challenge, to a revised rule,
used many of the same arguments, asserting that the department had
exceeded its authority in issuing the rule and that the rule was
capricious and arbitrary.