Statement On Repeal of Gainful Employment Rule | Press Release

July 1, 2019

“Let’s be clear. The Gainful Employment rule was working.”


BOSTON – Late on Friday afternoon, Education Secretary Betsy DeVos announced that the U.S. Department of Education would repeal the “gainful employment” rule, which holds for-profit colleges accountable for the false job placement rates that they use to mislead students.

The following is a statement from Eileen Connor, Legal Director at the Project on Predatory Student Lending.

“Let’s be clear, the gainful employment rule was working. It had begun to close the spigot of federal dollars flowing to for-profit colleges that had been lying to students and then leaving them with mountains of debt and no education to show for it.

With this decision, Betsy DeVos is once again siding with for-profit colleges over students. She’s choosing to give away millions of our tax dollars to this predatory industry, all while taking away the protections and debt relief that students are owed. It is beyond disappointing, but unfortunately not the least bit surprising.”


The for-profit college industry is among the most heavily tax subsidized of any private sector, taking more than $30 billion in taxpayer money each year in the form of federal student aid. The Department of Education alone has the power and authority to stop the flow of federal money to these predatory schools, but it refuses.


About the Project on Predatory Student Lending

Established in 2012, the Project on Predatory Student Lending represents former students of predatory for-profit colleges. Its mission is to litigate to make it legally and financially impossible for federally-funded predatory schools to cheat students.

The Project has brought a wide variety of cases on behalf of former students of for-profit colleges. It has sued the federal Department of Education for its failures to meet its legal obligation to police this industry and stop the perpetration and collection of fraudulent student loan debt.