A federal judge on Wednesday dismissed a lawsuit that challenged the U.S. Department of Education’s rewritten “gainful employment” rule, handing a victory to the Obama administration in its longstanding regulatory battle with for-profit colleges. U.S. District Judge Lewis Kaplan of New York ruled that the Education Department had the legal power to create the controversial rule in the first place and followed proper procedures in in developing its second iteration of the regulations. He also rejected an argument that the regulation -- which cuts off federal aid to career education programs graduating students with high debt loads relative to their earnings -- trampled on for-profit colleges’ constitutional right to due process.

May 28, 2015 ・ From Inside Higher Ed