Rules published Wednesday require students to prove schools knowingly deceived them if they want their federal loans canceled.
The College Promise program was pushed by Democrats in the legislature earlier this year.
Former ITT chief executive Kevin Modany and former chief financial officer Daniel Fitzpatrick have settled fraud cases with the Securities and Exchange Commission, avoiding a trial.
The firm is fending off similar suits from three other states and a federal agency.
Congressional Democrats are combating a Supreme Court decision that restricts public sector unions' ability to collect fees, with legislation to make it easier for union members in states with weak labor laws to fund their organizations.
The case could upend the role public-sector unions play in elections and in the workplace.
The Democratic lawmakers say DeVos has failed to create a simple and fair process for social workers, police officers and other public servants seeking federal student loan forgiveness through a temporary program.
Trump's proposal to merge the Education and Labor departments into one federal agency is being received by education policy wonks with a collective shrug.
The decision clarifies a previous ruling in May banning the Education Department from using earnings data to grant student loan forgiveness to Corinthian students.
Senate and House Democrats are accusing Education Secretary Betsy DeVos of exacerbating racial disparities in student debt by stalling loan forgiveness to defrauded borrowers, failing to enforce consumer protections and making minimal effort to exam the root causes of the inequity.