What Do “Gainful Employment” Regulations Accomplish?
Andrew Gillen
August 18, 2023
Funding-eligibility tests can do real good if used universally, not selectively.
The Biden administration will soon implement a set of regulations that are commonly known as “Gainful Employment.” These regulations would restrict some college programs’ eligibility to participate in federal financial-aid programs like Pell grants and student loans.
The Higher Education Act, originally passed in 1965 and amended many times over the years, includes a provision that requires “vocational” programs to prepare students for “gainful employment.” The law defines vocational programs as any program at a for-profit college, as well as any non-degree program (e.g., certificate programs) at public and private non-profit colleges.
As a matter of logic, this definition fails miserably. Under it, a master’s in business administration from the Wharton School is not considered vocational, but a master’s degree in social work from a for-profit college is. Unfortunately, when you pit logic against the law, the law wins. Thus, we are stuck with this definition of vocational education until Congress remedies the flaw.
