Gainful Employment Rule Back on Trial

Late last week, the U.S. Court of Appeals' DC Circuit heard oral arguments in a lawsuit over the Obama administration's gainful employment rule, reports Politico.

The Association of Private Sector Colleges and Universities (APSCU), challenging the regulation for a second time, appealed the June 2015 federal court ruling upholding the rule that judges career-oriented programs on their graduates' ability to repay their student loans. The decision denied the for-profit college trade group's argument that the rule's debt-to-earnings metric is arbitrary and capricious and outside the scope of the Higher Education Act.

APSCU's latest appeal argues that gainful employment "needlessly complicates the efforts of new traditional students to achieve a career-focused education that helps them get jobs."

A ruling in the current case is not expected for months.


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