Department of Education Repeals Gainful Employment Regulations July 01, 2019 Section 1 ContentThe U.S. Department of Education (ED) on Friday officially rescinded the Obama-era gainful employment regulations, which penalized some higher education programs that graduated students with too much debt relative to their earnings. The move, which as The Washington Post reported was long-expected, follows ED’s proposal last year to repeal the regulations. ED missed a deadline to repeal the regulation last year, meaning the rescission technically takes effect July 2020. But in the meantime, as The Post noted, the department has not been enforcing them.The New York Times reported that ED officials have argued that transparency, not regulation, is the best way to hold all schools — public nonprofits, community colleges, and for-profits — accountable for their results.In announcing the decision to formally repeal the gainful employment regulations, Secretary of Education Betsy DeVos referred to changes to add more information to the federal College Scorecard, saying, “All schools should be clear and transparent about their outcomes and all students should have a full range of information available. We’re committed to making that happen.”But ACE and 21 other higher education groups submitted comments in September 2018, advising ED to revise rather than eliminate the existing gainful employment regulations. The 2014 regulations, while not perfect, addressed a serious problem and targeted where the abuse occurred and where the department had clear statutory authority to act. ACE’s comments, submitted by Senior Vice President Terry Hartle, stated that using statutory authority to take administrative actions to curb documented patterns of abuse is a necessary and appropriate role for the department. As the ACE comments letter noted, “We oppose the department’s proposal to rescind, instead of revise, the existing gainful employment regulations, and do not believe that simply replacing them with additional disclosures on the College Scorecard at some point in the future serves the interests of students, institutions, or the public. While data and transparency are useful tools and have the potential to improve the higher education marketplace, they are not a substitute for the sanctions provided by the gainful employment rule.”Reacting to the official notification that the regulations are being rescinded, Hartle said Friday that, “Underperforming institutions need to be held accountable and students must be protected. This is a huge step in the wrong direction.” Hartle also noted that the department has acknowledged that eliminating the gainful employment regulations will cost taxpayers $6.2 billion over the next 10 years, adding that he also believes this will leave millions of students worse off. To read his full statement, click here. Section 2 Content Section 3 Content Section 4 Content Section 5 Content Section 6 Content Button Content Rail Content 1 Rail Content 2 Rail Content 3 Related News January 17, 2020 The House of Representatives voted 231-180 to pass a resolution to block Education Secretary Betsy DeVos' new borrower defense rule from going into effect. Read More News January 17, 2020 House Votes to Block Education Department Rule on Borrower Defense News January 13, 2020 The December webinar, “Whither Higher Education Act Reauthorization?” is now archived exclusively on ACE Engage®, ACE’s online community and learning platform. Read More News January 13, 2020 Missed Our Recent Webinar on HEA Reauthorization? No Problem, See It On ACE Engage. News December 13, 2019 Congress gave final approval Dec. 10 to the FUTURE Act, a bill that will restore and make permanent a $255 million per year funding stream for minority serving institutions. Read More News December 13, 2019 Congress Approves FUTURE Act Online Event December 10, 20191:00 PM to 1:45 PM This webinar will provide an overview of the prospects for HEA reauthorization, major issues involved with the legislation, and the implications for colleges and universities. Read More Online Event December 10, 20191:00 PM to 1:45 PM Whither HEA Reauthorization? News December 9, 2019 The Dec. 4 conversation, the first in a monthly series of Public Policy Pop-Ups, was hosted on ACE Engage®, ACE's peer-to-peer online community and learning platform. Read More News December 9, 2019 Public Policy Pop-Ups on ACE Engage Keep Campus Leaders in the Loop News December 9, 2019 The Senate has approved an amendment to the FUTURE Act that would permanently restore $255 million in funding for minority serving institutions and streamline the Free Application for Federal Student Aid (FAFSA). Read More News December 9, 2019 Senate Approves Compromise Measure to Extend MSI Funding, Simplify FAFSA News December 2, 2019 ACE is debuting a new feature called the Public Policy Pop-Up on ACE Engage®, ACE’s peer-to-peer online community and learning platform for higher education executives. Read More News December 2, 2019 Introducing Monthly Live Policy Updates on ACE Engage News November 25, 2019 ACE to host a webinar on the upcoming revised Title IX campus sexual assault regulations, and one on ED's proposed expansion of requirements for foreign gift and contract reporting. Read More News November 25, 2019 Coming Soon: ACE Webinars on Final Title IX Rule and Proposed Expansion of Foreign Gift and Contract Reporting Requirements News November 18, 2019 Register now for a Dec. 10 ACE webinar exploring whether the Higher Education Act (HEA) will be reauthorized anytime soon. Read More News November 18, 2019 ACE Webinar: Whither HEA Reauthorization?