Federal Update for June 2, 2011

The U.S. Department of Education released today the long-awaited final regulations on "gainful employment" programs.  The release of the regulations, which are aimed at fraud and abuse in the federal student aid programs, were delayed as result of the volume of public comments received by the Department.

The press release from the Department announcing the final regulations is available http://www.ed.gov/news/press-releases/gainful-employment-regulations.

The actual text of the regulatory package is available http://www2.ed.gov/policy/highered/reg/hearulemaking/2009/ge-unofficial-06022011.pdf.

While the larger "program integrity" regulatory package finalized earlier this year included provisions related to gainful employment programs, such as the data elements that institutions must provided and disclose, it did not address the most controversial issues, such as eligibility criteria for federal student aid.  This package focuses on the thresholds and criteria that gainful employment programs and their graduates must meet in order to remain eligible for federal student aid program.
 
(APLU and the UW Office of Federal Relations contributed to this report.)