Education Advisory: New Regulations Proposed by the Department of Education Will Impact Proprietary and Nonproprietary Schools Alike

New gainful employment regulations are more complex than Obama-era versions

New administrative capability regulations require expanded financial aid and career counseling services for proprietary and nonproprietary institutions

The proposed financial responsibility regulations allow the Department of Education to seek financial help more easily

The Department of Education has proposed new regulations that could have a significant financial, reputational, and compliance impact on institutions of higher education. While the proposed regulations most directly affect access to federal aid for career training and career services programs, the scope of the new gainful employment, administrative, and financial responsibility regulations extend to all institutions of higher education. The new regulations contain (1) new gainful employment provisions that impact institutions’ (both proprietary and nonproprietary) ability to participate in Title IV; (2) heightened administrative capability requirements for both career services and externship requirements; and (3) new triggering conditions for department-imposed financial protections.

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