Information and background on the issue of career education accountability
A coalition of eight civil rights organizations released a policy brief today, October 29, 2014, urging the U.S. Department of Education to release a strong gainful employment regulation to protect students, particularly African-American and Latino students, from substandard career education programs. The brief, “Gainful Employment: A Civil Rights Perspective,” documents the adverse outcomes that African-American and Latino students experience as a result of policies and practices implemented at for-profit colleges. Students at for-profit colleges are much less likely to graduate, more likely to default, and more likely to incur debt than students at public and non-profit schools. The brief details how a strong gainful employment rule will provide much needed protections to both students and taxpayers.
19 Members of Congress sent a letter to Education Secretary Arne Duncan asking him to “carefully examine the recent conversions to determine whether these institutions may legitimately be treated as non-profits for purposes of Department of Education regulations or whether they instead should remain covered by the rules and notifications governing for-profits”. They also ask about the Department’s process for reviewing these conversions.
Q&A on the 90-10 Rule. The 90-10 Rule is a federal law barring for-profit colleges from receiving more than 90% of their revenues from Department of Education federal student aid. It is modeled on the Department of Veterans Affairs’ long-standing 85-15 Rule, which prohibits more than 85% of a program’s students from receiving VA funding.
Final Education Department Program Integrity rules released October 28, 2010 which includes regulations on the issues of incentive compensation, misrepresentation, state authorization and credit hour.
The Project on Student Debt’s resource page on the federal student loan cohort default rate (CDR) provides background and useful links about cohort default rates for reporters, policymakers, and the general public.
On July 30, 2012, U.S. Senator Tom Harkin released a report on the for-profit college industry. The news release issued at the time and the full report are here.