“A U.S. judge on Wednesday threw out a lawsuit filed by a group of for-profit colleges challenging the Obama administration’s new regulations aimed at limiting student debt,”Reuters reports.
“U.S. District Judge Lewis Kaplan in New York upheld the Department of Education’s rules, which require the colleges to demonstrate their graduates earn enough money to repay their loans in order to maintain access to federal financial aid.
‘DOE has a strong interest in ensuring that students – who are, after all, the direct (and Congress’s intended) beneficiaries of Title IV federal aid programs – attend schools that prepare them adequately for careers sufficient for them to repay their taxpayer-financed student loans,’ Kaplan wrote in a 57-page decision.
The lawsuit was one of two filed in November by the for-profit college sector. …
Kaplan said in his decision that for-profit colleges had shown high student loan default rates and low graduation rates while often spending disproportionate amounts of money on recruiting and marketing. The Obama administration has pressed for years to create stricter industry regulation.”