Trump Administration Delays Gainful Employment Deadlines

The U.S. Department of Education on Monday extended the deadline for institutions to submit appeals or public disclosures under the gainful employment rule, Politico Morning Ed reported.

Under the controversial regulation, career college programs are evaluated based on the student loan debt of their graduates relative to the graduates' earnings. Programs whose debt-to-earnings rates fail or are in the warning zone for multiple years lose access to federal financial aid programs.

The delay allows the more than 800 career college programs that failed to meet the Obama administration's gainful employment requirements—nearly all at for-profit schools—more time to submit an "alternative earnings appeal" to the "debt-to-earnings" rates previously released by the department while officials "further review review the GE regulations and their implementation."

The deadline for appeals, originally set for Friday, is now moved to July 1. The July deadline also applies to disclosure requirements under the rule. The previous deadline for institutions to update disclosures for each of their gainful employment programs was April 3.

An Education Department spokesman said what pushed the issue to a head was concern for student data and privacy, Politico Morning Ed reported. To comply with the appeal, the spokesman said schools have to use a third-party auditor, and "there's a question about whether schools can provide data to a third party," he said. The Trump administration is attempting "an even handed approach" to address the situation, he added.

 

Related Links

U.S. Education Department's Officer of Federal Student Aid Announcement

https://ifap.ed.gov/eannouncements/030617GEAnnounce105AddtlSubTimeAEAandGEDisReq.html

Politico Morning Ed

http://www.politico.com/tipsheets/morning-education/2017/03/states-seek-to-scrap-free-speech-zones-219089