Home News For-Profit Suit Against Education Dept. Dismissed – Inside Higher Ed

For-Profit Suit Against Education Dept. Dismissed – Inside Higher Ed

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A federal judge on Monday dismissed a lawsuit brought by a for-profit college chain seeking to assure access to Title IV federal student aid money while it undertakes a financial restructuring.

Education Corporation of America filed the lawsuit against Education Secretary Betsy DeVos and the Education Department last month in the Northern District of Alabama to keep access to federal funds while it pursued a receivership plan. But Judge Abdul Kallon ruled the court did not have jurisdiction in the case.

Besides one phone call in which an Education Department official refused to offer assurance that the plan would be approved, the court found no evidence the receivership plan was ever submitted to the department.

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