In a recent court filing, Trump administration lawyers supported the Biden administration's gainful-employment rule, which mandates career education programs demonstrate that graduates can afford their loans and earn more than high school graduates. If programs fail these tests, they risk losing federal financial aid. The cosmetology school's trade association has sued against these regulations, claiming they threaten the viability of such schools and misuse flawed metrics. The Department of Justice stresses the importance of responsible management of taxpayer dollars based on the ongoing student debt crisis.
Programs that fail those tests under the so-called gainful-employment rule could lose access to federal financial aid.
The Trump administration decided to fight to keep the gainful-employment regulations.
It is the Federal Government's responsibility to be a good steward of taxpayer dollars, particularly in light of the billions disbursed in Title IV aid.
The trade association representing cosmetology schools argues the regulations jeopardized their existence and used flawed measures.
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