Court Stays Gainful Employment Lawsuit for 90 Days

The Department of Education requested and was granted a 90-day stay on their court case over the new Financial Value Transparency and Gainful Employment rules. The Department now has until May 16 to file its final brief.

The Department requested the stay for three reasons: allow the new administration time to review the regulations and their “ongoing implementation or potential reevaluation”, consider the higher education community’s request for a further deadline extension until July 2025, and to address “technical and operational” issues that persist.

The motion also explained that the Department does not plan to issue any debt-to-earnings or earnings premium metrics before the fall, as was planned by the previous administration, nor will it have the website for these results completed before July 2026.

Finally, the process that institutions who fail to comply with the reporting requirements must follow to submit explanations about their non-compliance will not be put into place during the stay.

For more information, please contact:
Justin Monk