U.S. Education Department Proposes New Accountability And Transparency Rules For Postsecondary Institutions

TAKEAWAYS

• The proposed "gainful employment rule" would limit a postsecondary institution's Title IV eligibility if its graduates' earnings are below certain thresholds.
• The Education Department would begin publicly reporting information concerning student debt and career outcomes at postsecondary institutions.
• The regulations would enhance the Education Department's ability to monitor postsecondary institutions it deems to be facing financial risk.

Amidst the focus on President Biden's student loan forgiveness plan, many postsecondary institutions may have missed the Department of Education's (ED) notice of proposed rulemaking aimed at increasing accountability for career training programs and transparency into the costs and financial outcomes of nearly all postsecondary programs. Specifically, the proposed regulations cover five topics: (i) financial value transparency and gainful employment, (ii) financial responsibility, (iii)