Department of Education Issues Final Gainful Employment Rule

Posted Thursday, June 2, 2011 by Katie Andriulli

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Early this morning, The Department of Education announced its final “gainful employment” rule geared toward regulating the worst actors in the career-college industry. The full rule can be found on the Department’s website here.

CP Director David Halperin said in a statement that the rule is a first step towards protecting students and taxpayers but “given the overwhelming evidence that the worst for-profit colleges are abusing students and taxpayers, the rule isn't strong enough.”

Campus Progress coalition partner The Institute for College Access and Success also suggested that the rule could have been much more robust: “Unfortunately the final rule will allow many programs that over-charge and under-deliver to continue to receive federal student aid. It also fails to address the recommendations [PDF] of a broad coalition of student, civil rights, consumer, higher education and college access organizations to strengthen the modest draft rule published last July.”

However, Halperin said, “We believe that, collectively, the rules issued by the Administration, ongoing investigations by state attorneys general, and increasing scrutiny by Congress and the media will ultimately compel for-profit schools to clean up their act or else shut their doors.”

For more background on the rule and what it will and will not accomplish, check out these stories:

Bloomberg: For-Profit Colleges Get More Time to Comply With U.S. Aid Rules

Chronicle of Higher Education: For-Profit Colleges Win Major Concessions in Final 'Gainful Employment' Rule

Huffington Post: For-Profit College Regulations: Obama Administration Issues Rules

New York Times: Education Department Increases Its Regulation of For-Profit Colleges

Politico: For-profit colleges are issued new rules by Education Department

Inside Higher Ed: Concessions or a Cave-In?

Katie is the Communications and Outreach Manager for Campus Progress.