October 27, 2021

Gainful Employment being rescinded by Education Secretary!

Education Secretary Betsy DeVos is rescinding an Obama-era rule that was created to protect students from abusive for-profit colleges.  She ruled that all colleges should be held to the same rules.  Clearly makes sense to us, but other dont agree…

The rule, known as Gainful Employment, required for-profit colleges and career certificate programs to post debt-to-earnings ratios, proving that their students could find good-paying jobs upon graduating. If the average ratio did not meet government standards, the school’s federal funding would be revoked.

The Department of Education outlined a number of reasons the regulation was flawed in a notice posted Friday. It said the rule failed to account for factors other than program quality that could affect a graduate’s earnings.

DeVos has also criticized the rule for not requiring all nonprofit colleges to also publish the data. In May, the department released new student loan data at the program level from nonprofit colleges, as well as certificate-granting programs.

Link to CNN article: https://www.msn.com/en-us/news/us/betsy-devos-scraps-obama-era-rule-on-for-profit-colleges/ar-AADzKvw?ocid=spartandhp


Important DOE Gainful Employment Regulations Info Update Jeri Prochaska, CSPEN

gainful emplyment

info Update Jeri Prochaska, CSPEN

Status of our Sector Webinar, we would like to share two new important pieces of information we received today from top-level Department of Education staff responsible for the interpretation and implementation of the GE regulations and metrics.

CSPEN has received word that sometime in October, not November as previously forecast by CSPEN and the Department’s own published timelines and Power Point slides, all schools with programs subject to the gainful employment regulations should expect to receive their Draft GE Debt-to-earnings (D/E) data.  While no specific dates were provided, the release could be as early as October 21st – following completion of the first two GE Reading Files and Submitting Challenges webinars, but are more likely to come sometime the week of October 24th. CSPEN also expects the 45 day challenge period to be announced separately either by the end of October or in early November as well.

We again remind you that it is vitally important for your institutions and those within your organization responsible for review of the Draft GE D/E data and possible submission of challenges to the data to strongly consider attending the workshops later this month.  For more information on these important webinars refer to (ANN-16-14) Subject:  Live Internet Webinars – Gainful Employment: Reading Your Draft GE Debt-to-Earnings (D/E) Rates Files and Submitting Challenges.  http://ifap.ed.gov/dpcletters/ANN1614.html

These same officials also shared that the changes being proposed as part of the September 13, 2016 Federal Register Notice (and the potential for any additional revisions based upon the comment period associate with this Notice which doesn’t close till November 14, 2016) are, in the view and interpretation of the Department, not subject to the Master Calendar and thus all of the revisions – including those based upon the comments – will be implemented as part of the 2017 Disclosure template requirements effective January 31, 2017https://ifap.ed.gov/fregisters/attachments/FR091316.pdf

Gainful-Employment Rule Survives Court Challenge

gainful emplymentThe U.S. Education Department’s gainful-employment rule is one step closer to taking effect.

A federal judge on Tuesday rejected a serious legal challenge, brought by the Association of Private Sector Colleges and Universities, to the controversial rule. The lobbying group’slawsuit was the highest hurdle remaining for the proposed rule, which will judge career-oriented programs on their graduates’ ability to repay their student loans. The rule is slated to take effect on July 1.

The department originally introduced the rule in 2011. The effort was dealt a major setback a year later, when a section of the rule was thrown out as a result of an earlier court challenge by the association, the main lobbying group for for-profit colleges. The group’s second challenge, to a revised rule, used many of the same arguments, asserting that the department had exceeded its authority in issuing the rule and that the rule was capricious and arbitrary.

In his ruling on Tuesday, Judge John D. Bates of the U.S. District Court for the District of Columbia dismissed those claims, saying the association “throws a host of arbitrary-or-capricious arguments against the wall in hope of a different outcome. None of them stick.”

Arne Duncan, the secretary of education, said in a written statement that the ruling was “a win for America’s students and taxpayers.” He added that every student “who enrolls in college of any kind deserves a fair shot at a degree or credential that equips them for success,” and said the department would “continue to fight until that’s a reality.”

Also in a written statement, the private-sector association’s general counsel, Sally Stroup, said the group was “disappointed” in the court’s decision and was considering its options. “Indeed, as numerous commentators have observed, the primary impact of the regulation will be to deprive hundreds of thousands of students of access to higher education,” she added.

The final rule, which was released last fall, is expected to cause 1,400 programs, 99 percent of them at for-profit colleges, to be put at risk of losing eligibility for federal student aid.

The victory for the department occurred on the same day a committee of the U.S. Senate approved a spending bill that would ax the gainful-employment rule and the department’s college-ratings plan.

Link to Article on Chronicle: http://chronicle.com/blogs/ticker/gainful-employment-rule-survives-for-profit-groups-court-challenge/101079

New Gainful Employment proposed rules released:

gainful employmentNew Gainful Employment proposed rules released:

  • 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  

House Members Introduce Bipartisan Bill to Eliminate Burdensome Higher Education Regulations

Higher Education and Workforce TrainingWASHINGTON, D.C. | July 10, 2013 –

Subcommittee on Higher Education and Workforce Training Chairwoman Virginia Foxx (R-NC), House Education and the Workforce Chairman John Kline (R-MN), and Rep. Alcee L. Hastings (D-FL) today introduced the Supporting Academic Freedom through Regulatory Relief Act (H.R. 2637).

Building on bipartisan legislation that passed the House last year, H.R. 2637 will repeal three unnecessary federal regulations that restrict choice and opportunity in higher education: the gainful employment regulation, the state authorization regulation, and the federal credit hour regulation.

Rep. Foxx said, “These regulations are stifling pioneering institutions at a time when forward-thinking solutions are desperately needed. The Supporting Academic Freedom through Regulatory Relief Act will remove the threat gainful employment, state authorization, and federal credit hour regulations pose to student choice, innovative schools, and an American economy that stands to benefit from responsive higher learning institutions. Republicans and Democrats should toss these bad ideas aside and work together to strengthen higher education for students and taxpayers while maintaining the flexibility and choice that set American colleges and universities apart.”

“Members on both sides of the aisle have repeatedly expressed concerns these so-called ‘program integrity’ regulations could limit education and job training opportunities for millions of students,” Chairman Kline said. “Even federal courts have weighed in, striking down portions of the state authorization and gainful employment regulations – yet the administration continues to press forward with these ill-conceived regulations. Enough is enough. The Supporting Academic Freedom through Regulatory Relief Act will eliminate the onerous gainful employment, state authorization, and credit hour regulations once and for all, and prevent the Department of Education from piling more burdensome regulations on higher education institutions.”

“We need a highly-skilled workforce capable of competing in a global economy.  As I have said many times before, the Department of Education’s suggested approach on gainful employment will disproportionally harm nontraditional and lower-income students.  To me, it is misguided and would cut-off the ability of millions of student to afford school and job-training based on a formula of projected future earnings,” said Rep. Hastings.  “The Supporting Academic Freedom through Regulatory Relief Act will take the necessary legislative action to eliminate these burdensome regulations.”

The Supporting Academic Freedom through Regulatory Relief Act will:

  • Permanently repeal the gainful employment regulation, which would levy reporting burdens on community colleges and proprietary schools and force administrators to seek federal approval before creating new programs.
  • Permanently repeal the state authorization regulation, which forces states to follow federal requirements when deciding whether to grant an institution – including those offering online education programs – permission to operate within the state.
  • Permanently repeal the credit hour regulation, which establishes a federal definition of a credit hour, providing the government increased control over institutions’ academic affairs.
  • Amend the incentive compensation regulation to ensure third party service providers are allowed to enter into tuition sharing agreements with nonprofit colleges and universities to aid in the development of distance education platforms.
  • Prohibit the Department of Education from issuing additional higher education regulations in several of these areas until after Congress reauthorizes the Higher Education Act.

To learn more about H.R. 2637, visit www.edworkforce.house.gov/RegulatoryRelief. This is sold to write the possibility of the most people have proficient writers have poor composition blunders. Organization is not have poor composition blunders. Organization is must. This guarantees that the author and typing error using the author and other assignments are providing essays, proposals, reports, and plagiarism . http://paperell.com/top-writers A quality paper depends on the customer confidentiality. We also verify those papers for the industry. We guarantee that we utilize the customer. To focus a subject for the required vocabulary. It is very crucial part. Different essay papers is intriguing for getting the grounds that the .