For-Profit Group Files Motion in Gainful Employment Suit

February 9, 2015

The Association of Private Sector Colleges and Universities on Friday filed a motion calling for a judge to issue a ruling without a trial on the for-profit trade group's legal challenge to the U.S. Department of Education's gainful employment rules.

The regulations would impose penalties on vocational programs at for-profits and community colleges that do not meet standards the department has set for graduates' debt-to-earnings ratios. (The rules would only apply to non-degree programs at community colleges, however, while applying to degree and non-degree programs at for-profits.)

The for-profit association quickly sued after the rules were released, calling them arbitrary. A department official, however, said at the time that he was confident the regulations would withstand legal scrutiny.

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