The U.S. Department of Education unveiled its proposed new "gainful employment" regulation—all 841 pages of it—on Friday. In a nutshell, it sets out two kinds of tests—one based on loan-default rates of borrowers in for-profit and vocational programs, the other based on how much debt the programs' graduates incur relative to their eventual income—to determine whether programs pass or fail.
Programs that failed either test would lose their eligibility for federal student aid, although when that ineligibility would kick in is pretty complicated.
To add to the confusion, the department first issued a "final" regulation in 2011, based on several proposed drafts. Then, when that "final" regulation was thrown out by a federal court, in the summer of 2012, it began the process anew. In August 2013 it offered a series of proposals that were subject to negotiations through December. The version unveiled on Friday is still subject to 60 days of public comment and won’t be finalized until after that.
Read more at The Chronicle of Higher Education: http://chronicle.com/article/Gainful-Employment-What-s/145359