5 Things to Know About the Proposed Gainful-Employment Rule

By Goldie Blumenstyk. Why is the Department of Education proposing a new gainful-employment rule?
Most of the original proposed rule was thrown out by a federal district court in June 2012, after the Association of Private Sector Colleges and Universities, the main trade group of the for-profit-college industry, challenged it in a lawsuit.
A judge appointed by President Obama agreed that the department had the right to issue the regulation but said the department had been "arbitrary and capricious" in setting the thresholds for one of the three key criteria it would use to determine whether a program would lose eligibility for federal student aid. More...