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Judge Upholds U.S. ‘Gainful Employment’ Rules For For-Profit Colleges

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.

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. 

The Association of Proprietary Colleges, which represents 20 schools in New York, brought the New York lawsuit. A similar lawsuit was filed in the District of Columbia by the 1,400-member Association of Private Section Colleges and Universities and remains pending.