- Programs must pass the following metrics to maintain federal financial aid eligibility:
- The estimated annual loan payment of graduates cannot exceed 20 percent of their discretionary earnings or 8 percent of their annual total earnings; and
- The programmatic cohort default rate cannot exceed 30 percent for 3 consecutive years.
- The Department did modify 2 variables in the debt-to-earnings calculation:
- 30 students must complete the program; the previous version only required 10; and
- The amortization schedule is now 10 years for certificate and associate degree programs, 15 years for bachelor’s and master’s degree programs and 20 years for doctoral and first professional programs; the previous version provided a 10 year period for all programs.
- Institutions must certify that all gainful employment programs meet applicable accreditation requirements and state or federal licensure standards.
- Institutions must publicly disclose information about the program costs, debt, and performance of their gainful employment programs so that students can make informed decisions.
Link to Proposed Gainful Employment Rules: https://www2.ed.gov/policy/highered/reg/hearulemaking/2012/notice-proposed-rulemaking-march-14-2014.pdf