Beauty Schools Sue Department of Education Over Obama-era Laws


Beauty Schools Sue Department of Education Over Obama-era Laws

Feb, 13th 2017

The lawsuit, filed Friday in federal court in Washington, seeks an order barring the rule that threatens career schools’ access to federal student aid if they saddle their graduates with too much debt relative to their earnings. The trade group said the rule is harmful when applied to beauty schools, whose graduates typically underreport income from cash tips.

The U.S. Department of Education has tightened standards on for-profit education institutions, forcing the schools to demonstrate that graduates have found gainful employment that will allow them to pay off their student debt. If they don’t meet certain requirements,...

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