Education Secretary Betsy DeVos has taken another step to undo protections against predatory lending practices by for-profit colleges.
As expected, the DOE has proposed rescinding the Gainful Employment regulation, which requires for-profit schools to prepare students for a job in a recognized occupation or for a degree program at a nonprofit or public institution in order to participate in federal student loan programs.
DeVos, in a statement, said the current rule, enacted by the Obama administration, targets schools “simply by their tax status” and the department plans to update its College Scorecard or similar web-based tool to provide information about median debt and median earnings for all [our italics] higher-education programs that participate in federal student financial aid programs under Title IV of the Higher Education Act of 1965.
According to The Chronicle of Education, 98% of the education programs that failed the Gainful Employment rule in 2017 — one-tenth of all programs failed — were for-profit institutions.
The public will have 30 days to comment on the proposed regulation once it’s published in the Federal Register.