US Department of Education Gainful Employment Regulations: What to Expect (EDU540O)

Presented By: Yolanda R. Gallegos
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Event Details
  • Pre-recorded Webinar
  • 60 minutes
  • Tue, May 20, 2014
Event Description

The Gainful Employment Notice of Proposed Rulemaking: Find Out What’s In Store for Your Institution

At the end of March 2014, the U.S. Department of Education (ED) released its controversial and long-awaited “gainful employment” notice of proposed rulemaking (NPRM). This mammoth 841-page release sets forth ED’s plan to impose regulatory standards on certain postsecondary institutions to measure whether graduates are earning sufficient amounts to service their student loan debt. This webinar takes up where Yolanda Gallegos’ February 2014 webinar left off.

While the NPRM contains some adjustments to its December 2013 draft, the NPRM maintains several components and adds new elements that raise questions about ED’s proposed metrics calculation methodology including:

  • Reliance on questionable earnings data including:
    • Undisclosed and unreviewable earnings data would be used to calculate the debt to earnings metrics.
    • Contrary to acceptable statistical methods, ED continues to plan on imputing zero values to graduates for whom SSA has no earnings data. This would constitute a manipulation of the earnings data and substantially underrepresent the aggregate earnings of graduates. Graduates who are legally not required to file returns or who choose not to report their income will fail to have their earnings counted. Moreover, ED will assume these students have zero income rather than removing these graduates from the earnings calculations or imputing a reasonable value to the missing data. This is particularly of concern for graduates who are self-employed and who have no employer to report W2 forms.
  • Severe limitations in the ability to challenge debt to earnings rates
  • Establishment of 8% and 12% passing debt to earnings and debt to discretionary income thresholds weakly supported by data.
  • The imposition of sanctions based on students who have graduated before the rule becomes effective making it retroactive in effect

This session by Yolanda Gallegos will inform affected postsecondary schools of the proposed gainful employment regulations and how to challenge them before they become final and effective.

Session highlights:

  • Learn how the NPRM differs from the draft regulations released by ED late last year.
  • Identify requirements and methods in the proposed regulation that could impact your institution if implemented in the final regulation
  • The components of the regulation most vulnerable to legal challenge
  • How to utilize existing public data to assess your institution’s performance under the proposed regulation
  • How to make your concerns known to ED in the form of public comments
  • Strategies to address regulation’s flaws when the Higher Education Act is reauthorized.

The audience will be informed of documents not disseminated to the public that were obtained by the presenter pursuant to FOIA requests. These documents provide an inside look into how ED plans on obtaining data to implement its gainful employment regulations and reveal significant concerns about the reliability of that data.

Who should attend:

  • Officers and owners of private sector (for-profit) postsecondary institutions and other institutions that offer short-term, non-degree programs
  • Investors in private sector postsecondary institutions
  • Career placement professionals
  • Postsecondary financial aid professionals
  • Postsecondary regulatory and compliance professionals

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About Our Speaker(s)

Yolanda R. Gallegos
The Gallegos Legal Group, founded by Yolanda Gallegos, is a national education law practice, representing colleges and universities around the country. Gallegos Legal Group specializes in higher education regulatory compliance and risk management in areas associated with federal student aid, student grievances, civil r... More info


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