Group says rules discriminate against industry

A federal judge has tossed out a lawsuit brought by a for-profit college association against federal rules meant to limit the amount of student debt.

U.S. District Judge Lewis Kaplan in New York ruled against the Association of Proprietary Colleges Wednesday, finding the U.S. Department of Education did not exceed its authority by adopting tying federal loan eligibility to the ability of private college students to pay off their debt once they graduate, according to Reuters.

APC, which represents 20 private colleges in New York State, said in a statement it was disappointed with the ruling.

"While we agreed with the Department's goals for this rule from the outset, we remain steadfast in our conviction that this regulation does not achieve those goals," the group said. "Namely it does not distinguish between successful programs and those that are not."

The lawsuit was one of two filed against the department by associations. The other lawsuit by the Association of Private Sector Colleges and Universities is currently before U.S. District Court of D.C. http://reut.rs/1KAXPvK

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