Federal judge dismisses legal challenge to gainful employment rule
Natalie Schwartz
October 3, 2025
Although the Biden-era rule survived litigation, the Trump administration is considering making changes to the regulations.
Dive Brief:
A federal judge dismissed a case Thursday that challenged the legality of the Biden administration’s gainful employment rule, which aims to ensure that graduates of career education programs earn enough to pay off their student loan debt.
U.S. District Judge Reed O’Conner — a George W. Bush appointee — rejected arguments from cosmetology school groups that the gainful employment rule overstepped the U.S. Department of Education’s authority and violated their constitutional rights.
Although the Biden-era rule survived the legal challenge, the Trump administration is considering potential changes to the gainful employment regulations in the coming months.
