US government releases new "gainful employment" regulations

June 2, 2011

Yesterday the US Department of Education released final regulations requiring career college programs to better prepare students for "gainful employment" or risk losing access to federal student aid. Like the controversial draft rules the department proposed last summer, the final regulations focus on the amount of debt that students in for-profit and certificate programs incur, and on their prospects of paying it off. The final rules offer institutions significantly more leeway, lowering the required debt-to-income ratios and giving colleges more opportunities to improve before they lose eligibility for federal financial aid. US Department of Education News Release | Inside Higher Ed