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California Association of Private Postsecondary Schools

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Final Gainful-Employment Rule Is Expected in October


The Chronicle of Higher Education. June 13, 2014.

The Department of Education plans to finalize its controversial gainful-employment rule in October, according to a notice scheduled for publication in Friday’s Federal Register.The rule, which proposes cutting off federal financial aid to programs whose graduates have high rates of default or high levels of student-loan debt relative to their incomes, has been the subject of long and contentious debate.

In 2012 a judge struck down parts of the proposed rule, which was then taken up by a panel of negotiators charged with designing a new one. Those sessions ended in deadlock. The department’s rewrite of the rule was open to public comment until late last month.

For-profit colleges have protested the draft rule, saying it would limit access to higher education for millions of students nationwide.