Education Dept. 'Presses Pause' on Gainful Employment Compliance Deadline

Two weeks after the U.S. Department of Education rolled back two Obama-era regulations reining in for-profit colleges, the agency announced a new delay in the gainful employment rule, NPR reported. The move will give institutions an extra year, until July 1, 2018, to comply with the regulation by disclosing information about program performance to students in their marketing materials.

"Since their creation under the previous administration, Gainful Employment regulations have been repeatedly challenged by educational institutions and overturned by the courts, underscoring the need for a regulatory reset," Education Secretary Betsy DeVos said in a statement. "Once fully implemented, the current rules would unfairly and arbitrarily limit students' ability to pursue certain types of higher education and career training programs."

The agency also extended the deadline for for-profit cosmetology programs to appeal their graduates' earning data. In light of the court order in American Association of Cosmetology Schools v. DeVos, the department will issue a Federal Register notice within the next 30 days to specifically implement the order and will include information on establishing a new deadline for earnings appeals.

In addition, the department announced last month that it would restart a negotiated rulemaking process in order to change the gainful employment regulations.


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U.S. Education Department Press Release