New Gainful Employment Rules Impact For-Profit and Nonprofit Colleges and Universities
Paul G. Lannon and Maddie Fenton
October 17, 2023
Highlights
The U.S. Department of Education (Department) issued new Gainful Employment (GE) regulations last month for the first time since 2014. These program-specific regulations impose important compliance obligations on for-profit and not-for-profit institutions of higher education.
Financial Value Transparency provisions are intended to increase the quantity and quality of information that students will have before enrollment. Performance metrics demand greater accountability for GE programs.
Reporting obligations will go into effect on July 1, 2024. The Department expects to publish the first financial outcome rates in early 2025. GE programs that fail the new metrics in the first two years will become ineligible for federal financial aid in 2026.
The U.S. Department of Education (Department) issued new Gainful Employment (GE) regulations in September 2023 for the first time since 2014. These program-specific regulations impose important compliance obligations on for-profit and not-for-profit institutions of higher education. Failure to comply could lead to public notices and loss of participation in federal student aid programs. The regulations are codified in the Code of Federal Regulations (CFR) at Title 34, Part 668.
