serenissima: Eastern screech owl (observer)
[personal profile] serenissima
This caught my eye the other day.

For-profit colleges sue Dept of Education over new rule
(Reuters) - An association of for-profit colleges in the United States has sued the Department of Education to block the implementation of a controversial rule, saying the rulemaking process was flawed and the agency was overreaching in its capacity to frame such rules.

The Association of Private Sector Colleges and Universities (APSCU), representing more than 1,650 colleges, filed a lawsuit in the federal District Court in Washington DC seeking to block the department's final 'gainful employment' regulations.

In June, the department finalized the rule which threatens to cut off federal aid -- a key source of revenue -- to colleges if they do not meet certain student debt criteria.
The final version of the rule is a much softer one than the draft published earlier as the industry fought back the strict rules through lobbying.

The rule is part of a larger package of regulations framed by the Obama administration to reduce student debt at for-profit colleges and make them more accountable for the taxpayers money they get to fund student loans.
[snip]
Context:
Frontline television program about how some for-profit colleges use federally funded loans to pay for students' sub-standard curricula
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