ED Posts Draft Gainful Employment Language for Neg Reg Discussion

In advance of negotiated rulemaking on the controversial subject of gainful employment regulations, the U.S. Department of Education has published draft regulatory language as “a starting point for discussions.”

ED estimates that twice as many programs — 11,359 — would fall under the draft guidelines as compared with previous gainful employment regulations, which were struck down by a federal court last year.

The draft language eliminates one of the earlier regulation’s three tests of gainful employment — a student loan repayment rate of at least 35 percent — but retains the other two, based on the student loan debt-to-earnings and debt-to-discretionary income ratios for students completing programs subject to the regulations. ED has posted a comparison of other provisions of its draft proposal.

The neg reg panel will consider the proposal during three days of meetings next week. A second negotiated rulemaking session is scheduled for October.