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California Association of Private Postsecondary Schools

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Obama Is Urged to Toughen ‘Gainful Employment’ Rule


The Chronicle of Higher Education, February 4, 2014. A coalition of higher-education associations, consumer advocates, and veterans’ groups on Tuesday sent a letter urging President Obama to strengthen the provisions of his administration’s proposed “gainful employment” rule, which would cut off federal aid to career-oriented programs whose borrowers have trouble repaying their debt.

Last year the Education Department convened a rule-making panel to negotiate over the controversial rule. Key portions of a 2011 version of the rule had been overturned in the courts, and last year’s talks on the revised rule ended at an impasse after several rounds of negotiations.

In the letter, the coalition—which included the American Association of State Colleges and Universities, the American Association of University Professors, and the Institute for College Access and Success—sought the inclusion of what it said were five key elements in the new version of the rule, such as a loan-repayment metric and stronger debt-to-earnings standards.