BRONX, NY (11/10/2014)(readMedia)-- The Association of Proprietary Colleges (APC), an organization representing New York's degree-granting, proprietary colleges, announced that it filed suit in the Southern District of New York earlier today challenging the validity of the Department of Education's recently issued Gainful Employment (GE) Rule. A copy of the complaint can be found here.
Through the GE Rule, the Department of Education seeks to identify poorly performing higher education programs that don't prepare students for gainful employment. APC contends that the Rule, which was published last week, is unconstitutional, violates the plain language of the statute, and is arbitrary and capricious.
"APC has long-endorsed the Department of Education's efforts to protect students from bad or weak programs that leave them with big student loan debt and little education of value, but this GE Rule is not the impartial, equitable regulatory framework required," said Donna Stelling-Gurnett, Executive Director of the Association of Proprietary Colleges. "Regretfully, after five years of discussion and negotiation with the Department, we still have a regulation that is long on political bias and short on factual basis. Filing this lawsuit is a matter of principle. New York's students and proprietary colleges deserve better."
Among the complaints:
A third-party study conducted by The Parthenon Group, a global strategy consultancy, concluded that the GE Rule was based on flawed analysis, and that the Department ignored student demographic data that its own previous studies had clearly established were important factors in measuring students' success.
A separate study conducted by Mark Schneider, the former Commissioner at the National Center for Education Statistics and a leading authority on education policy, also found that the metrics do not adequately assess program value. That study looked at programs in Texas, and found that more than one-quarter of bachelor's programs and as many as 54 percent of the degree programs at the highly respected University of Texas would fail the GE Rule if they had to comply (as a public institution, its degree programs are not subject to the GE rule).
"We have consistently advocated that no effective rule measuring gainful employment can exist if it does not include a graduation rate requirement and are astonished and disheartened that a program with zero graduates would automatically pass the Rule's litmus tests," said Ms. Stelling-Gurnett. "The GE Rule clearly does not accomplish what it was designed to do -- measure poorly performing programs -- which is why we expect that it will ultimately be struck down in court."
The Department's first attempt in 2010 to create a GE Rule was successfully challenged in court by APSCU, the Association of Private Sector Colleges and Universities. A Federal district court found that key provisions of the proposed regulation were not based on relevant facts, and subsequently voided it.
Additional information about Gainful Employment and APC's position on the issues can be found on the organization's website and related blog.
ABOUT APC, THE ASSOCIATION OF PROPRIETARY COLLEGES
The Association of Proprietary Colleges (APC), the only state organization that exclusively represents degree-granting proprietary colleges, promotes educational best practices and advocates for a regulatory environment that helps students achieve their goals. APC represents 23 degree-granting colleges on 34 campuses across the state, serving more than 40,000 students. Additionally, APC colleges employ approximately 6,500 people in the State of New York. Follow us on Twitter @APCColleges.