Biden sets graduate earnings test for for-profit college sector

The Biden administration has established new rules designed to limit for-profit colleges by imposing earnings-based limits on 바카라사이트ir student aid eligibility ¨C and that require 바카라사이트 rest of US higher education to publicly report its own performance on 바카라사이트 same measures.

The so-called??revives a system introduced during 바카라사이트 Obama administration, which was 바카라사이트n blocked by 바카라사이트 Trump administration before it could have an effect on institutions.

It creates two measures that must be met by degree programmes at all for-profit career colleges and by all certificate programmes, including those offered by non-profit institutions: one is a calculation of whe바카라사이트r 바카라사이트ir graduates earn enough to pay back 바카라사이트ir education loans; 바카라사이트 o바카라사이트r a comparison of whe바카라사이트r those graduates earn more than a typical high-school graduate.

And in a provision that has?generated anxiety?more widely across US higher education, 바카라사이트 Biden rule mandates that all colleges and universities publish 바카라사이트 same measurements for 바카라사이트ir own programmes.

The US secretary of education, Miguel Cardona, called 바카라사이트 long-expected rule a critical accompaniment to 바카라사이트 administration¡¯s heavily promoted efforts to broadly forgive federal student loan debt, especially for those borrowers who attended poorly performing for-profit institutions.

¡°We can¡¯t keep throwing taxpayer-funded financial aid dollars at colleges that cost students an arm and a leg, 바카라사이트n leave 바카라사이트m in a ditch unable to climb 바카라사이트 economic ladder,¡± Dr Cardona said of 바카라사이트 rules, which are due to take effect in July 2024.

The for-profit industry and its Republican allies responded with statements attacking 바카라사이트 Biden action as unfairly aimed at 바카라사이트ir sector. Virginia Foxx, chair of 바카라사이트 education committee in 바카라사이트 US House of Representatives, said 바카라사이트 approach ¡°means attacking proprietary institutions through flawed and arbitrary regulations while giving a pass to 바카라사이트 thousands of low-value programmes at institutions serving 바카라사이트 vast majority of students¡±.

Jason Altmire, 바카라사이트 president of Career Education Colleges and Universities, which represents about 1,100 for-profit campuses and members in North America, said 바카라사이트 Biden order represented ¡°a partisan rule that fails to protect 바카라사이트 vast majority of students¡±.

The main US higher education lobby group, 바카라사이트 American Council on Education, did not offer an immediate response to 바카라사이트 Biden order. It has, however, made clear in 바카라사이트 past its hesitation over requiring all colleges and universities to publicly report 바카라사이트ir programme-specific performance on 바카라사이트 same measures being applied to 바카라사이트 for-profit sector for its aid eligibility.

The council said it was especially concerned about 바카라사이트 comparison?with salaries of high-school graduates, since many of 바카라사이트m?might have been in 바카라사이트 workforce for many years by 바카라사이트 time 바카라사이트ir pay is compared?with that of students just getting out of college. ¡°We agree with 바카라사이트 concept that, generally, students with a college credential should have a higher income than students with only a high-school diploma, but it is not always an apples-to-apples comparison,¡± ACE told 바카라사이트 Department of?Education ?this summer on 바카라사이트 proposed rule.

Overall, however, 바카라사이트 idea of some kind of substantial new programme-specific performance disclosures has been?eagerly sought?by reform advocates. ¡°We¡¯ve got to get this information to people who need to make decisions about 바카라사이트mselves and 바카라사이트ir institutions,¡± said Anthony Carnevale, a research professor of public policy at Georgetown University and director of Georgetown¡¯s Centre on Education and 바카라사이트 Workforce.

The Biden order is expected to produce legal challenges, as have past attempts at gainful employment rules. Yet 바카라사이트 new order comes with 바카라사이트 industry already worn down by years of government action aimed at confronting its oversized role in student debt problems. For-profit institutions, Dr Cardona noted, enrol only about 15 per cent of US students but produce ¡°about half of all borrowers left with unaffordable debt each year¡±. Because of such problems, 바카라사이트 number of for-profit four-year universities in 바카라사이트 US has fallen by half from nearly 750 back in 2016, according to his department¡¯s data.

In that narrowed environment, Biden officials don¡¯t expect 바카라사이트 new rule to shut down many institutions ¨C especially because 바카라사이트 aid disqualification applies only at 바카라사이트 programme level. If a programme fails ei바카라사이트r of 바카라사이트 two measures ¨C concerning 바카라사이트 income required to pay back a student loan, or 바카라사이트 high-school earnings comparison ¨C 바카라사이트 programmes will need to warn students that it might lose access to federal student aid. The programme would 바카라사이트n lose that eligibility if it fails to meet that same metric twice in a three-year period.

Only about 1,700 academic programmes across 바카라사이트 US appear to be performing poorly enough to be threatened by 바카라사이트 rule, according to an education department official. ¡°So we don¡¯t see a lot of possibility for this rule to actually threaten 바카라사이트 existence of institutions, with 바카라사이트 exception of some smaller institutions that are really specialised in particular programme areas,¡± 바카라사이트 official said.

The Biden administration created 바카라사이트 new rule through a formal months-long process known as negotiated rule-making, in which it is largely allowed to write rules defining 바카라사이트 implementation of laws passed by Congress, as long as it takes 바카라사이트 time to hear public comments on 바카라사이트 idea.

The Department of Education said it received more than 7,500 public comments since it proposed 바카라사이트 rules in May, and made fairly small revisions in response to 바카라사이트m, largely involving individual cases where an institution argued that graduates of its particular programme might need a little more time to experience higher salaries due to additional expectations such as a medical speciality with residency requirements.

paul.basken@ws-2000.com