Judge Advances Pared-Down Lawsuits Over DeVos’ Repeal of Obama-Era Rule – Courthouse News Service
SAN JOSE, Calif. (CN) — Education Secretary Betsy DeVos cannot dodge two lawsuits challenging the repeal of an Obama-era rule designed to protect students from taking on debt for worthless education programs, but the secretary defeated most claims asserted in them.
In July 2019, DeVos repealed the “Gainful Employment Rule,” which required schools to certify their programs adequately prepared students for decent-paying jobs after graduation. Proposed in 2014 and enacted one year later, the rule was intended to safeguard students from deceptive marketing by predatory, for-profit schools and inform them if a particular program offered a reasonable return on investment.
The rule also limited which schools can accept federal student loans by requiring the Education Department to determine eligibility based on the average debt-to-earnings ratio for graduates of each program.
DeVos nixed the rule, arguing the repeal would eliminate onerous reporting requirements for colleges and allow students to retain “the right to enroll in the program of their choice, rather than allowing government to decide which programs are worth a student’s time and financial investment.”