For-Profit Colleges Sue U.S. to Block ‘Gainful Employment’ Regulations

Rules designed to cut off federal aid to institutions whose students struggle the most to repay government loans were challenged by an organization representing for-profit colleges.
A lawsuit attacking so-called gainful employment measures was filed today in federal court in Washington by the Association of Private Sector Colleges and Universities, or APSCU. The rules set benchmarks that educational programs must meet to remain eligible for government grants and loans, which can constitute as much as 90 percent of their revenue.