Ass'n of Private Sector Colleges & Universities v. Duncan

640 F. App'x 5
CourtCourt of Appeals for the D.C. Circuit
DecidedMarch 8, 2016
DocketNo. 15-5190
StatusPublished
Cited by5 cases

This text of 640 F. App'x 5 (Ass'n of Private Sector Colleges & Universities v. Duncan) is published on Counsel Stack Legal Research, covering Court of Appeals for the D.C. Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ass'n of Private Sector Colleges & Universities v. Duncan, 640 F. App'x 5 (D.C. Cir. 2016).

Opinion

JUDGMENT

PER CURIAM.

This appeal was considered on the record of the United States District Court for the District of Columbia and on the briefs and oral arguments of the parties. The court has afforded the issues full consideration and has determined that they do not warrant a published opinion. See D.C.Cir. R. 36(d). For the reasons stated below, it is

ORDERED and ADJUDGED that the judgment of the district court be affirmed.

The Association of Private Sector Col-legés and Universities (“the Association”) challenges 2014 regulations promulgated by the Department of Education that define what it means for certain educational programs to provide a “program of training to prepare [their] students for gainful employment in a recognized” occupation or profession. Program Integrity: Gainful Employment (“2014 Rule”), 79 Fed.Reg. 64,889, 64,890 (Oct. 31, 2014) (interpreting text in 20 U.S.C. §§ 1002(b)(1)(A)(i), 1002(c)(1)(A), 1088(b)(1)(A)(i)). To determine whether a particular educational program so prepares its students, the Department established a set of metrics intended to measure whether a program’s graduates are earning enough money to pay back their student loan debt (hereinafter, the “debt metrics”). Id.; see also 34 C.F.R. §§ 668.403-668.406, 668.409-668.410. A program’s performance under the debt metrics determines whether its students are eligible for federal student loans under Title IV of the Higher Education Act, Pub.L. No. 89-329, 79 Stat. 1219, 1232-54 (1965) (codified as amended in scattered sections of 20 U.S.C. §§ 1070-1099c-2 and 42 U.S.C. §§ 2751-2756b). 34 C.F.R. § 668.403(c)(4). The debt metrics require certain data about students that schools operating covered educational programs must report to the Department. Id. § 668.411.

On cross motions for summary judgment, the district court granted summary judgment to the Department, concluding the Association’s statutory challenges failed under Chevron, U.S.A., Inc. v. NRDC, 467 U.S. 837, 104 S.Ct. 2778, 81 L.Ed.2d 694 (1984), and that it failed to meet its burden to show that the Department’s 2014 Rule was arbitrary or capricious. Ass’n of Private Sector Colls. & Univs. v. Duncan (“APSCU III”), 110 F.Supp.3d 176, 184-98 (D.D.C.2015). The district court also granted summary judgment to the Department on the legality of the rule’s reporting requirement, as well as its disclosure and certification requirements. Id. at 198-204.

On appeal, the Association raises three issues: (1) The Department’s interpretation of the Higher Education Act is foreclosed by the text of the statute or, in any event, is an unreasonable interpretation. (2) The debt metrics established by the regulations are arbitrary and capricious. (3)' The reporting requirement exceeds the Department’s statutory authority and is nonseverable, mandating vacatur of the 2014 Rule. The Association no longer challenges the certification or disclosure provisions. Three district courts have written [7]*7persuasively in response to some or all of the Association’s contentions, with respect to both the 2014 Rule and the Department’s first “gainful employment” rule-making, in 2011. See APSCU III, 110 F.Supp.3d 176; Ass’n of Proprietary Colls. v. Duncan, 107 F.Supp.3d 332 (S.D.N.Y 2015) (2014 Rule); Ass’n of Private Sector Colls. & Univs. v. Duncan (“APSCU II”), 930 F.Supp.2d 210 (D.D.C.2013) (vacating 2011 rule reporting requirement); Ass’n of Private Sector Colls. & Univs. v. Duncan (“APSCU I”), 870 F.Supp.2d 133 (D.D.C. 2012) (vacating 2011 rule debt metrics). This court addressed Department regulations promulgated pursuant to different Title IV requirements in Association of Private Sector Colleges and Universities v. Duncan (“APSCU”), 681 F.3d 427 (D.C.Cir.2012). We take due guidance from these sources, as did the district court in APSCU III, 110 F.Supp.3d at 185, 190-94, 198. Upon de novo review, see APSCU, 681 F.3d at 440-41, we affirm as follows.

At the center of the Association’s challenge is the Department’s interpretation of Title IV's s requirement that, for their students to be eligible for federal financial aid under that title, certain types of educational programs must provide a “program of training to prepare students for gainful employment in a recognized” occupation or profession. 20 U.S.C. §§ 1002(b)(1)(A)(i), 1002(c)(1)(A), 1088(b)(1)(A)(i). The Department has interpreted this undefined, ambiguous clause to require that “programs provide quality education and training to their students that lead to earnings that will allow students to pay back their student loan debts.” 2014 Rule, 79 Fed. Reg. at 64,890. The Association contends the issue is resolved at step one of the analysis in Chevron, 467 U.S. at 842-43, 104 S.Ct. 2778, because the “gainful employment” provisions require only that students be trained for paying jobs.

The district court’s analysis rejected as erroneous the Association’s contention and held that the Department’s interpretation of the “gainful employment” provisions warrants Chevron deference, APSCU III, 110 F.Supp.3d at 184-90, emphasizing that “the Department’s interpretation is rooted in the text ...,” id. at 186. We agree, and we briefly elaborate on the district court’s application of the first step of the Chevron analysis, 467 U.S. at 842-43, 104 S.Ct. 2778, to offer an additional observation in support of its conclusion. The district court focused principally on the meaning of the words “gainful” and “employment” separately. APSCU III, 110 F.Supp.3d at 185. The phrase “gainful employment” appears, however, in many federal statutes and means different things in different contexts. See, e.g., 16 U.S.C. § 1701 (referring to employment of children 15-18 years of age for up to 90 days per year in Youth Conservation Corps); 20 U.S.C. § 1134c(a) (prohibiting certain federal fellowship recipients from engaging in “gainful employment” during fellowship); 26 U.S.C. § 21 (establishing tax credit to offset household and dependent care expenses necessary for “gainful employment”); Helms v. Monsanto Co., 728 F.2d 1416, 1421-22 (11th Cir.1984) (characterizing “gainful employment” in employee disability benefits case as a job where the employee “could earn a reasonably substantial income rising to the dignity of an income or livelihood”).

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640 F. App'x 5, Counsel Stack Legal Research, https://law.counselstack.com/opinion/assn-of-private-sector-colleges-universities-v-duncan-cadc-2016.