Department of Education delays enforcement of rule on for-profit colleges

The Department of Education announced on  Monday that it will delay implementing new rules designed to punish career-training schools that leave students with high levels of debt but weak job prospects. The Wall Street Journal (subscription required) explains:

The move delays new rules known as “gainful employment” that formed a key piece of former President Barack Obama’s higher-education agenda. It could ultimately help for-profit colleges avoid sanctions if they prove the government data underpinning the rules is flawed.

The Education Department said Monday it will give schools until July 1 to file appeals, pushing back an original deadline of Friday. “This action is taken to allow the Department to further review the GE regulations and their implementation,” the agency said.

The rules are designed to cut off access to federal money for career-training programs if multiple classes of their graduates spend at least 20% of their discretionary income, as defined by a formula, or 8% of their total earnings each year, paying off student debt.
The Department's announcement is here.

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