After lobbying by for-profit colleges, Trump administration scraps rule on 'gainful employment'
WASHINGTON — The U.S. Department of Education has repealed a rule that the Obama administration saw as a key effort to protect students at for-profit career schools: the gainful employment rule, which penalized college programs that produced too many graduates with unmanageable student loan debt.
For-profit education giants, like Pittsburgh-based Education Management Corp., blamed that rule for their financial struggles.
When the gainful employment rule was finalized in July 2015, the Obama administration called it “a signature effort to protect students and taxpayers” because it would “end the flow of federal student aid to career training programs that leave students buried in debt with few opportunities to repay it.”
The rule tied federal funding for college programs to minimum standards of debt-to-income rates of their graduates.
Read more: https://www.post-gazette.com/business/career-workplace/2019/07/02/For-profit-colleges-Trump-DeVos-EDMC-Dream-Center-Art-Institute-gainful-employment/stories/201907020085
(Pittsburgh Post-Gazette)