Campus Progress Statement on the Gainful Employment Rule

Given the overwhelming evidence that the worst for-profit colleges are abusing students and taxpayers, the rule isn't strong enough, but it's still an important reform that could, over time, help millions of students.

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.

It was appropriate for the Administration to take action—for fiscal responsibility, for our economy, and especially for our students. The status quo, where tens of thousands of U.S. students have enrolled each year in programs that leave them buried in debt, was unacceptable. Since the Administration began this rulemaking process, government and media investigations have exposed outrageous misconduct by bad actors in the for-profit college industry. The most frequent victims have been those who need the most assistance—low-income students, people of color, and our veterans. Without action, we could be facing another subprime-like debt crisis, triggered by student loan defaults.

Campus Progress is proud to join with a diverse coalition of civil rights, consumer, educator, and student groups who came together to stand up for students and taxpayers in the face of a furious pressure campaign by the for-profit education industry.

It would be a travesty if the for-profits now spend even more money – largely money that comes from taxpayers – on lobbying, litigation, advertising, and campaign contributions in an effort to maintain a system that has rewarded them for waste, fraud, and abuse. It is our sincere hope that the for-profit industry will now instead take steps to improve their programs so that they better serve students; some of them have started to take such steps in the past year. But if the industry refuses to listen to reason, we hope Congress will -- in this era of scarce federal dollars, Members of Congress from both parties should support a path forward that, as this new rule does, starts directing federal resources to programs that actually help students to learn, graduate, and succeed in the job market.