NAICU Washington Update

Call for Summary Judgment on Gainful Employment Suit

February 12, 2015

The Association of Private Sector Colleges and Universities (APSCU), which represents for-profit institutions, filed a motion for summary judgment in its November 2014 suit challenging the Department of Education’s gainful employment regulations.

The Chamber of Commerce of the United States of America has submitted an amicus curiae brief in support of APSCU’s motion.

The summary judgment process moves consideration of the suit along more expeditiously because both sides have agreed to the facts in the case and are only arguing about the law involved.

The Department has until March 6 to reply to the motion for summary judgment. A hearing on the case is set for May 20. If the judge decides in favor of APSCU, the gainful employment regulation would be vacated. If the judge decides against APSCU, it will likely appeal that decision. The regulations, published October 2014, are scheduled to go into effect on July 1, 2015.

APSCU won an earlier gainful employment case against the department in 2013. The decision invalidated much of the earlier, 2011 regulation on gainful employment. In this recent suit, APSCU is arguing that the most recent gainful employment regulations are even “more irrational and arbitrary,” exceed the Department’s statutory authority, are harmful to student access, and violate the Administrative Procedure Act. The Association of Proprietary Colleges in New York has also filed for summary judgment in its similar case in New York District Court.

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