Home News NJ Sues Dept. Of Education To Stop ‘Unmanageable Loan Debt’ – Patch

NJ Sues Dept. Of Education To Stop ‘Unmanageable Loan Debt’ – Patch

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The Gainful Employment’ Rule is set to be repealed Wednesday. Attorney General Gurbir Grewal is trying to stop it.

NEW JERSEY – An Obama-era rule designed to keep students from ending up with unmanageable student loan debt and little earning potential is set to be repealed by the U.S. Department of Education Wednesday and Attorney Gurbir S. Grewal has filed suit to block it.

The Gainful Employment Rule sought to promote accountability and transparency among for-profit colleges and other career-focused, non-degree programs, officials said. The rule denied federal funding to programs that leave students with poor earnings prospects and high amounts of debt, while requiring schools to provide consumers with key information about programs’ costs and their graduates’ earnings and debt.

Filed in U.S. District Court in Washington, D.C., the lawsuit challenges DOE’s July 2019 decision to repeal the Gainful Employment Rule.

“With the economic downturn causing many of our residents to reevaluate their careers and consider returning to school, it’s hard to imagine a worse time to eliminate protections for students who are seeking to improve their job prospects,” Grewal said. “Yet the U.S. Department of Education is doing just that, so that it can send more taxpayer money to for-profit schools that push high-cost, low-value educational programs and saddle students with unaffordable debt.”

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