CECU Blasts U.S. Department of Education for Failing to Implement New Rules


Steve Gunderson, President and CEO of Career Education Colleges and Universities, criticized the U.S. Department of Education for their failure to complete final rules on Borrower Defense and Gainful Employment by the November 1, 2018 deadline.

“At a time when the nation desperately seeks skilled workers, career education desperately needs stability in regulations and operations. The Department’s announcement that they will fail to meet the November 1 deadline only imposes greater chaos and uncertainty on the very schools whose sole purpose is to provide career education skills,” said Gunderson.
​In a court filing related to the Borrower Defense to Repayment Rules, the Department said they would not be able to complete the new rules in time, meaning any new rules will not take effect won’t until July of 2020.

“This is simply unacceptable! This delay will only invite more litigation, more legal confrontation, and more uncertainty and chaos in the operation of our schools,” added Gunderson. “In explaining the delay the Department cites the large volume of public comments. But in 2016, the Obama Department received 12,000 more comments on their proposed BDR rule than today. And in 2014, the Obama Department received 80,000 more comments on their Gainful Employment rule than today. Yet they were able to complete both rules on schedule.”

Gunderson went on to suggest the delay is a result of the Trump Administration not fully staffing senior policy positions, “The Obama Administration had 25 Schedule C officials in the office of Under Secretary in 2016 compared to 6 in the current Department. And the Obama Administration had 12 Schedule C appointments in the Office of Planning, Evaluation and Policy Development compared to only 4 in the DeVos Department. This is a classic example of being penny-wise and pound foolish! They pride themselves in not fully staffing the Department. Unfortunately, as a result of understaffing, students and career schools suffer!”