Citing FAFSA Mess, Colleges Want Relief From New Gainful Rule
Katherine Knott
March 27, 2024
The Education Department asked for two years’ worth of data by July 31—a task that will be “a significant institutional undertaking,” administrators say.
As colleges and universities scramble to process student financial aid applications and send out award letters, institutions want more time to comply with reporting requirements in the Education Department’s new gainful employment and financial value transparency rule.
The rule aims to provide prospective students with more information about whether college programs pay off. The department will calculate whether graduates of programs can afford their yearly debt payments and whether they make more than an adult in their state who didn’t go to college—and then publish the results. Programs at for-profit colleges, as well as nondegree programs in any sector, could lose access to federal financial aid if they fail either of those tests. When others fail, the department will inform students and families that those academic offerings could lead to adverse financial consequences.
