July 3, 2012

Heather Greenaway, 571-215-6151

APSCU Sends Letter To Education Department On Gainful Employment Ruling

Washington, D.C. - Former Congressman Steve Gunderson, the president and chief executive officer of the Association of Private Sector Colleges and Universities (APSCU) today released the following letter which was sent to the Department of Education. This letter is in response to the U.S. District Court for the District of Columbia vacating significant portions of the so-called "gainful employment" ruling. The letter is accompanied by APSCU's statement in response to the arbitrary and capricious regulation imposed by the Department of Education against career schools:

"The district court's ruling concerning APSCU's challenge to the Department of Education's faulty 'gainful employment' regulation, showed that nearly all the overreaching elements of the regulation were vacated. The court's opinion holds that the loan repayment test violated the Administrative Procedure Act concluding it was not the product of reasoned decision making. Next, the court vacated the reporting provisions as well as the program approval regulations because they too were centered on the 'gainful employment' rule.

"Since 2010, there has been a significant debate between the Education Department and career colleges and universities concerning the proposed rulemaking on 'gainful employment.' It has only served to distract from our joint, core responsibility and mission, which is to provide students - particularly non-traditional ones such as veterans, adults and parents - with the education and skills they need to achieve their very own version of the American Dream. It is my personal hope, and that of our members, that the era of litigation is over, and the era of public-private partnerships in putting people to work in high-quality, good-paying jobs is ahead. We look forward to working with the federal government to prepare more Americans to compete successfully for 21st Century jobs and to move our nation's economy forward."

APSCU Letter to Department of Education


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PSCUs open doors to many of the 9 million unemployed and 90 million undereducated Americans by providing a skills-based education. To remain competitive over the next decade, we must identify between 8 and 23 million new workers with postsecondary skills. PSCUs are a necessary part of that solution, having produced over 800,000 degrees last year alone.