- The Department of Education has filed a motion asking a federal court to reinstate provisions of its "gainful employment" regulations requiring institutions to report information about their students' loan repayment rates and debt-to-income ratios.
- The provisions were thrown out by the court in a June 30 decision, in which the court ruled that the department had the authority to require that vocational programs disclose their debt repayment rates and debt-to-income ratios, but that the Education Department's threshold for declaring a program as failing was "arbitrary and capricious."
The "gainful employment" rule--which was issued last year and would have taken effect a day after the court's ruling--was designed to ensure that non-degree-granting vocational programs at for-profit and non-profit institutions are good investments and preparing students for well-paying jobs.
From the article:
The Department of Education has asked a federal court to modify part of a decision issued on June 30 that vacated key provisions of the department's "gainful employment" regulations. In a motion filed Monday, the department argued that the court should reinstate the requirement that institutions report information about their students' loan-repayment rates and debt-to-income ratios. The court incorrectly threw out the reporting aspect of the rule, the department argues, based on a "misunderstanding" of the complexities of the regulations and how the debt measures are calculated. ...