The Trump administration will announce on Wednesday a rollback of Obama-era rules devised to close for-profit colleges that are said to leave students with high debt and little job opportunities, according to the Wall Street Journal.
The Education Department will rewrite the rules, known as "gainful employment" regulations, to make them "fair, effective and improved."
The administration will also alter the rules that make it easier for Americans to bring lawsuits against universities and graduate schools accused of committing fraud in promotional materials.
The "borrower defense" rule was designed by the Obama administration and was intended to reimburse Americans who enrolled at schools that made false promises of students getting high-paying jobs after graduating.
Education Secretary Betsy DeVos will announce that the agency will establish committees to rewrite both sets of regulations.
Shares of for-profit educators were down on the news.
Adtalem Global Education Inc. (ATGE - Get Report) , formerly DeVry Education Group Inc., was down about 2.6% midday Wednesday to $37.20 per share, while shares of Grand Canyon Education Inc. (LOPE - Get Report) were down less than a percent to $80.10.
What's Hot on TheStreet
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About Uber: Uber's investors continue to back the embattled ride-sharing company, according to TheStreet's sources.