Gainful Employment Panel Tom Kosel, Director of Government Relations Globe University / Minnesota School of Business
Gainful Employment Since 1965, For-Profit Career Colleges have assisted their graduates in obtaining gainful employment by helping them secure a position in their field of study.
Potential Final Gainful Employment Regs 7/1/2012
Key Factors Driving Gainful Employment Student loan debt is increasing in all sectors of higher education For-Profit institutions graduate students with the highest average debt and the highest % of students with debt Lack of consistent, valid data on the ROI and the value- added received by our graduates Bias against For-Profit Educational Businesses
The Challenge To provide student-centered, career-focused educational programs while reducing student loan debt
Measuring the Outcomes of the Operation We have not tracked outcomes in a consistent manner. We do not have verifiable data to support our claim that we add value to the lives of our students. The gainful employment regs will require us to track data to demonstrate the eligibility and accessibility of our programs.
Gainful Employment Requirements See handout titled “Program Integrity: Gainful Employment – New Programs 10/29/2010 New Programs Reporting Requirements Disclosure Requirements
10/29/10 Final Regulations Effective 7/1/11 Gainful Employment – new programs Institutions must notify DOE of new program at least 90 days before first day of classes If DOE wants additional information, they must alert the institution 30 days before the first day of classes.
10/29/10 Final Regulations Effective 7/1/11 Gainful Employment – reports Annual reports by program from 7/1 to 6/30 with the following data: All students entering the program All students completing the program Completion date Amount student received from private educational loans and institutional financing that is owed Whether student matriculated to higher credential program at same institution or at another institution Total enrollment as of 6/30
10/29/10 Final Regulations Effective 7/1/11 Gainful Employment – disclosures Disclosures must be in all promotional material and websites: Occupation the program prepares students to enter On-Time graduation rate for program The cost of the program including tuition, fees, books and supplies Placement rate for students completing the program using the methodology developed by NCES Median loan debt of all students completing the program