Gainful Employment Statute

• An educational program is Title IV eligible only if the program:– Is offered by a public or non-profit institution

and leads to a degree or transfer; or– Is offered at any institution and “leads to

gainful employment in a recognized occupation”.• Referred to as a Gainful Employment

Program or a GE Program.

Gainful Employment Programs

• Public institutions and not-for-profit institutions –– All programs, except for –

• Programs that lead to a degree;• Programs of at least two years in length that

are fully transferable to a bachelor’s degree program; and

• Preparatory course work necessary for enrollment in an eligible program.

Required Disclosures – Consumer Info.• Disclose for each GE Program:

– Occupations (by name and SOC code) that program prepares students to enter

– Links to occupational profiles on O*NET

– Program costs – for entire program in normal completion time

– On-time completion rate

– Median loan debt incurred by students who complete the program

– Job placement rates – not required for CCCs at this time

New GE Programs

• Very involved process for new GE programs effective July 1, 2011

• Too involved and too much work for the federal government

• Proposed regulations dated September 29, 2011, greatly simplifies process – however not effective until at least July 1, 2013

Gainful Employment Reporting Requirements• Institution must annually report information on

students who were enrolled in a GE program for each award year –– Student identifying information

– Program identifying information

– Enrollment information

– Amounts from private education loans and institutional financing plans

• By November 15, 2011 all colleges must report:– 2006-2007, 2007-2008, 2008-2009, 2009-2010, and

2010-11 award year information

GE Measures and Penalties

• Measures:– Annual Loan Repayment Rate

– Discretionary Income Threshold

– Actual Earnings Threshold

• Penalties for failing to meet at least one measurement: – One or two years = additional disclosure requirements

– Three out of four years = loss of federal aid eligibility for that program