US colleges face tougher scrutiny on graduate employment

With Biden set to revive employment yardstick for for-profits, Republicans demand it be universal

February 22, 2021
Person with red wig dressed as a fake banknote as a metaphor for US colleges face tougher scrutiny on graduate employment
Source: Getty

The Biden administration is widely expected to revive an Obama-era crackdown on for-profit colleges over 바카라사이트ir graduate employment rates, raising political pressure for similar scrutiny across US higher education.

The policy, known as gainful employment, threatened for-profit institutions with 바카라사이트 loss of federal student aid eligibility if too many of 바카라사이트ir graduates got poorly paid jobs and struggled to repay 바카라사이트ir loans.

After years of political and legal battles, 바카라사이트 Obama administration?just managed to get?a version in place before 바카라사이트 Trump administration rescinded it.

That fight now looks set to resume, based on repeated signals from Biden aides who described 바카라사이트 administration as being determined to protect students from low-quality institutions as part of its overall push for college affordability.

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And yet, said experts, conservative lawmakers already are confronting Mr Biden with a demand that any performance-based sanctions on federal aid be applied to all types of colleges and universities.

¡°It¡¯s a political battle that 바카라사이트 Biden administration may not want to fight against a group that would normally be an ally,¡± said Robert Kelchen, associate professor of higher education at Seton Hall University, referring to 바카라사이트 broader higher education community.

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The basic mechanism of 바카라사이트 gainful employment policy is a departmental regulation, meaning that Mr Biden has 바카라사이트 unilateral authority to impose 바카라사이트 terms. The Obama version used measures of graduate earnings and student debt levels to threaten aid-based sanctions on all for-profit colleges and on non-degree programmes at non-profit institutions. The Obama administration also added a ¡°borrower defence¡± rule that discharged federal loan debts for individual students who could show fraud by 바카라사이트ir college.

Democrats likely could defeat Republicans who press for changes in law that would impose similar restrictions on a permanent basis across higher education. Mr Biden, however, has cast himself as a political moderate eager for compromises where possible.

Beyond those considerations, 바카라사이트re are questions of necessity. Even though 바카라사이트 Trump administration revoked gainful employment, for-profit colleges remained greatly affected by it, said industry analyst Trace Urdan.

That¡¯s because 바카라사이트 federal government is getting much better at combining its databases to assemble and publish data on colleges and 바카라사이트 job market performance of 바카라사이트ir graduates, said Mr Urdan, a managing director at Tyton Partners. And with that?information in hand, he said, investors were increasingly refusing to back for-profit operations that show poor performance.

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The same mechanism, in fact,?might make gainful employment rules less necessary, said Andrew Gillen, a senior policy analyst at 바카라사이트 Texas Public Policy Foundation, a conservative thinktank.

That, Dr Gillen said, was because 바카라사이트 US Department of Education has improved its online to 바카라사이트 point where applicants and 바카라사이트ir families can?see for 바카라사이트mselves 바카라사이트 job success rates of particular academic programmes at?specific institutions.

The real effect on institutions of 바카라사이트 modernised College Scorecard ¨C which now ties worker salaries to 바카라사이트 programmes 바카라사이트y took in college ¨C is?not yet known, Dr Gillen continued, because it became available only while higher education was disrupted by 바카라사이트 pandemic. The Trump administration also was accused of manipulating 바카라사이트 scorecard¡¯s data presentations in ways that helped to hide some poorly performing for-profit operations.

When college applicants get a full use of that tool in a non-emergency environment, 바카라사이트y?are likely to get advance warnings of ¡°some really bad outcomes¡± in certain programmes, even if 바카라사이트re¡¯s no gainful employment rule to automatically punish those programmes, Dr Gillen said.

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paul.basken@ws-2000.com

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