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President to President
Molly Corbett Broad's weekly email newsletter to higher education leaders.

ACE, Higher Education Groups Comment on Proposed Gainful Employment Rules

May 26-30, 2014 ~ Vol. 15, No. 18

  • ACE, Higher Education Groups Comment on Proposed Gainful Employment Rules
  • IN BRIEF: House Poised to Pass FY 2015 CJS Spending Bill; House Ways and Means Committee Approves Charitable Giving Tax Extensions

ACE was among the many organizations weighing in this week on the Department of Education’s (ED) proposed rules on gainful employment, the latest move in the Obama administration’s effort to ensure that individuals who enroll in career training programs will earn enough money to repay their student loans.

The regulations, which would take effect in 2015, are extremely technical—click here for a summary of the 845-page proposal. We strongly support this effort and the overall goal of the rules, which is to help potential students make prudent decisions about which higher education programs to pursue and assure those students get a valuable educational experience.

The draft regulations fall short of this goal, and moreover will impose a regulatory and cost burden that will be felt most strongly at institutions with the fewest financial resources, especially community colleges.

Among the areas of concern we identify in comments sent Tuesday to ED are that the proposed regulations are not well-targeted and provide no reasonable safe harbors for institutions operating in good faith within the system, and that the proposed metrics are too weak to be effective against underperforming programs.

Click here to read our comments in full, which were submitted on behalf of 17 other higher education groups. The final regulations are expected to be released by Nov. 1.


The House was poised yesterday to approve the FY 2015 Commerce-Justice-Science appropriations bill (H.R. 4660), which includes funds for the National Science Foundation (NSF). A final vote was expected late last night or today. Despite reduced overall funding in the FY 2015 bill, the House Appropriations Committee approved a 3 percent increase for NSF. Click here to read the White House Statement of Administration Policy on the measure.

The House Ways and Means Committee yesterday approved a bill (H.R. 4719) that would make a range of tax provisions permanent, including two important to higher education: the IRA Charitable Rollover, which expired at the end of 2013, and an extension of the time each year when tax deductible gifts can be made. Another expired provision that still needs attention is the tuition deduction. The Senate tax extenders bill, which includes one year extensions of the IRA Rollover, the Research and Development Tax Credit, and the tuition deduction, is still awaiting floor action.

Molly Corbett Broad
President of ACE