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California Association of Private Postsecondary Schools

Gainful Employment Rule Will Limit Opportunities for Students

01/10/2014

U.S. Chamber of Commerce. Jan 9, 2014.

The Department of Education’s proposed Gainful Employment Rule threatens to cut off federal financial aid for students who attend private sector institutions and community colleges that offer vocational programs. This will have a negative impact on those who need the most assistance—low-income and minority students.

In his annual State of American Business address, U.S. Chamber president and CEO Tom Donohue cited over-regulation as a cause to the slow economic recovery and as an impediment to opportunity for all. Specifically, he addressed the proposed rule:

We are very concerned about the Department of Education’s proposed Gainful Employment Rule, which discriminates against private sector colleges and universities. This is wrong and unfair. These institutions can play a major role in helping our nation close a serious skills gap. We are going to do everything we can to change or stop the rule as it is currently written.

One of the key tenets to Donohue’s speech was expanding opportunity for all and providing everyone a fair shot at the American dream:

We must help those who are struggling by ensuring that they have the education, skills, incentives, and opportunities to share in this prosperity.

Limiting access to education and training by implementing misguided regulations like the Gainful Employment Rule won’t expand opportunity. It will only limit it.