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Developments in Higher Ed: Court challenges Department of Education rule aimed at private sector

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With existing threshold for gainful employment ruled “arbitrary,” what’s next?

By Martin Lind

July 12, 2021 - Only one day before the regulations would have taken effect, a U.S. district judge struck down part of the U.S. Department of Education’s “gainful employment” regulations, federal rules designed to protect career-training school students from being left with limited employment options and overburdened by student loan debt. The judge’s move had private sector schools applauding and most of the industry wondering what happens next.  Here are a few good sources on the subject:

Inside Higher Ed: Down But Not Out

Wall Street Journal: For-Profit Colleges Score a Victory

New York Times: Judge Strikes Main Element of For-Profit College Rules

It appears that there is more ambiguity ahead for an industry that has faced so much uncertainty in recent months.  We encourage readers to keep an eye on this significant issue.

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