Nineteen U.S. attorneys general are suing Education Secretary Betsy DeVos for overturning an Obama-era rule designed to protect students from predatory higher education institutions.
The 2014 gainful employment rule was created by the Obama administration to ensure that schools — many of them for-profit colleges — were denied access to federal aid if their graduates had weak career prospects and heavy debt loads.
In response to the lawsuit, press secretary Angela Morabito stated simply: “The Department will vigorously defend its final regulation rescinding this deeply flawed rule.” Randi Weingarten, president of the teachers’ union American Federation of Teachers, added: “Betsy DeVos has already made history as one of the most unproductive, unpopular and frankly embarrassing cabinet appointments — and today, states across the country are holding her to account.”
The gainful employment rule addressed this imbalance by requiring schools’ graduates to have loan payments that were less than 8% of their total income or 20% of their discretionary income, as The New York Times explained in 2014. Some attorneys general sued DeVos in 2017, alleging that she illegally delayed the implementation of the 2014 rule. In January 2020, the country’s second-largest teachers’ union sued DeVos for reversing the gainful employment rule. And California Attorney General Becerra, who is not part of the new lawsuit, also brought a lawsuit against DeVos for overturning the rule.
“Before the GE Rule, scores of students took on loans to enroll in programs that offered a worthless education, a key contributor to a national student debt crisis. In egregious cases, students’ harmful enrollment decisions were the consequence of unscrupulous recruiting practices by predatory for-profit institutions,” they stated in the lawsuit.
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