Gainful employment rules shove for-profit, private institutions into negative view
- The Hechinger Report examines new data from the federal Department of Education, which shows a continuing trend among for-profit and private four-year institutions of producing graduates who go on to earn annual salaries at or below the federal poverty level.
- According to the data, more than 40% of private proprietary schools have graduates of degree programs yielding less than $14,500 per year, compared to 16% of graduates from public colleges.
- The federal government plans to release final gainful employment statistics in January, with an eye towards barring financial aid for students attempting to major in failing programs at specific schools.
This appears to be one of the last stands the U.S. Department of Education is taking under the guise of saving taxpayers money, while actually implementing a conservative cost savings program for Pell Grant and federal loan administration.
Campuses should watch these developments closely in the waning months of the administration to see if any programs could be on the watch list for prohibition, and how it may affect enrollment, faculty layoffs and other operational standards.