Betsy DeVos has rescinded the Obama era gainful employment (GE) regulations (2014 Rule).
The 2014 Rule was developed in response to concerns about poor outcomes among GE programs that left students with debt that was outsized, relative to student earnings in the early years of student loan repayment.
The department felt the 2014 Rule was flawed for a number of reasons saying the regulations:
- Relied on a debt-to-earnings (D/E) rates formula that is fundamentally flawed and inconsistent with the requirements of currently available student loan repayment programs.
- Failed to properly account for factors other than institutional or program quality that directly influence student earnings and other outcomes.
- Failed to provide transparency regarding program-level debt and earnings outcomes for all academic programs.
- Wrongfully targeted some academic programs and institutions while ignoring other programs that may result in lesser outcomes and higher student debt.
For more visit: https://www.federalregister.gov/documents/2019/07/01/2019-13703/program-integrity-gainful-employment