AG Grewal: NJ Sues U.S. Department of Education to Block Repeal of “Gainful Employment” Rule’s Protections for Student Borrowers

TRENTON – Acting to protect New Jersey students from ending up with unmanageable student loan debt and little earning potential, Attorney Gurbir S. Grewal today announced that New Jersey is joining a coalition of States suing the U.S. Department of Education (DOE) over its repeal of its Gainful Employment Rule.

Adopted during the Obama Administration, the Gainful Employment Rule sought to promote accountability and transparency among for-profit colleges and other career-focused, non-degree programs. The rule denied federal funding to programs that leave students with poor earnings prospects and high amounts of debt, while requiring schools to provide consumers with key information about programs’ costs and their graduates’ earnings and debt.

Filed today in U.S. District Court in Washington, D.C., the lawsuit challenges DOE’s July 2019 decision to repeal the Gainful Employment Rule. The repeal will take effect on July 1, 2020.

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