Surviving court challenge, US “gainful employment” rule goes into effect

July 6, 2015

Last week, the US Department of Education’s “gainful employment” rule survived a legal challenge by the Association of Private Sector Colleges and Universities. Although the rule was first created in 2011, earlier court challenges forced revisions to the final rule, which went into effect on Wednesday. The rule stipulates that if graduates of career-training programs are unable to pay their loans, then the school risks losing access to federal financial aid. “There are too many [institutions that] have been morally unconscionable with what they’ve done ... Too many of these guys took advantage,” Education Secretary Arne Duncan told CNN. Winnipeg Free Press (AP) | EdCentral | CNN | Chronicle of Higher Education | Inside Higher Ed