EDUCATION DIVE: Federal judge sides with Obama on gainful employment rule

Career College Central Summary:

  • A federal judge in New York decided against a group of for-profit colleges arguing the Obama administration’s proposed rule about gainful employment was unconstitutional and arbitrary.
  • Inside Higher Ed reports the colleges argued their due process rights would be trampled if the administration could cut off student loan funding based on the new metrics but the judge said the schools had no "vested right" in that funding.
  • The colleges further argued the administration was arbitrary in changing its rule from a previously litigated metric about repayment rates to the current version, which measures student debt loads relative to their earnings, but the judge found the change to be carefully considered, according to the article.

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