Biden Administration Proposed New Rule Targeting Student Debt

The 'Gainful Employment' rule aims to crack down on those programs while also requiring all colleges to reveal information on how much attendance really costs and graduates really earn.

The U.S. Education Department issued a new rule that would significantly restrict operations at certain for-profit colleges and job certificate programs.

The ‘Gainful Employment’ rule aims to judge career training programs on how much debt their students take on compares to the income that they are on the path to earn.

It would require all institutions to disclose information related to attendance costs, graduates’ earnings, average borrowing amounts and other data.

The ‘Gainful Employment’ rule aims to crack down on those programs while also requiring all colleges to reveal information on how much attendance really costs and graduates really earn.

The department estimates it would protect over 700 thousands students annually who would otherwise be likely to enroll in the roughly 1,800 low-performing programs.

The proposed legislation was originally set for release last year, but delayed due to months of deliberations and hearings.