The Association of Private Sector Colleges and Universities is "considering our options" after a U.S. district court ruled against the group in a lawsuit concerning federal student loan eligibility.

In an opinion issued Tuesday, U.S. District Court for D.C. ruled the U.S. Department of Education had the authority to tie loan eligibility to the ability of college students to pay off their debt once they graduate, the Associated Press reported. The move was part of an effort by the government to crack down on private-sector colleges that were allegedly charging exorbitant rates for the education they provided. http://bit.ly/1e3tkAB

APSCU was one of two associations that challenged the rules, the other being the Association of Proprietary Colleges. A federal judge dismissed the latter's lawsuit in May. Now a court has ruled against APSCU, the new rules will take effect July 1.

"(A)s numerous commentators have observed, the primary impact of the regulation will be to deprive hundreds of thousands of students of access to higher education," APSCU said in a statement. "That is inconsistent with the congressional plan under the Higher Education Act, unlawful, and bad policy."

The association added it was closely reviewing the opinion. http://bit.ly/1QPUgWo

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