Gainful Employment rule replaced with College Scorecard
Secretary DeVos recently announced that she plans to rescind the Gainful Employment Rule. Gainful employment stipulations apply to degrees and certificate programs offered by for-profit institutions, and to vocational certificate programs at community colleges and other nonprofit institutions. Under the rule, schools would lose federal aid in the form of Pell Grants and student loans if graduates' debt-to-earnings ratio exceeded a certain threshold for programs. The regulations were established in response a Government Accountability Office study that found evidence of fraud and unethical behavior by four of 15 institutions tested across a number of factors.
In place of the Gainful Employment Rule, the DOE will offer more program-level outcomes data through the College Scorecard, a consumer information tool launched by the Obama administration. Additionally, the DOE may also require that institutions disclose on each program’s website information such as completion rates, cost, accreditation status, and whether it meets licensure requirements for the state in which the program is located.