Department of Education Proposes Stricter Gainful Employment Regulations

McGuire Woods

May 22, 2023
On May 19, 2023, the Department of Education (ED) published in the Federal Register proposed regulations concerning gainful employment (GE), threatening to cut off federal financial aid for approximately 1,800 career training programs at community colleges, public universities, private-nonprofit institutions and proprietary institutions. See 88 Fed. Reg. 32300 (May 19, 2023).
ED provides an Excel spreadsheet of career programs at various public, private and proprietary institutions across the United States to demonstrate which programs would lose eligibility for federal financial aid under the proposed metrics. ED estimates that 58% of proprietary institutions have at least one program that could lose such eligibility. ED’s proposed GE rule remains open for public comment until June 20, 2023.
The notice of proposed rulemaking also addresses financial responsibility, certification procedures to receive federal financial aid through a program participation agreement, standards of administrative capability, and ability to benefit. This alert focuses on the proposed GE rule.