What to Know About the Gainful Employment Rule

August 12, 2019

Fact sheet on the Gainful Employment (GE) rule. The Higher Education Act (HEA) requires that all career education programs receiving federal student aid “prepare students for gainful employment in a recognized occupation,” however the HEA does not define “gainful employment.” The purpose of the Gainful Employment Rule is to provide that definition.


What to Know About the Borrower Defense to Repayment Rule

April 30, 2019

Fact sheet on the Borrower Defense to Repayment (BD) rule. The Borrower Defense to Repayment Rule offers students relief from federal loans borrowed based on fraudulent, misleading or illegal acts by their schools. Borrower defense is an established legal right for many forms of consumer credit, and it has been a part of the Higher Education Act for many years.


How Much Did Students Borrow to Attend the Worst-Performing Career Education Programs?

August 21, 2018

The gainful employment rule enforces the Higher Education Act’s requirement that all career education programs receiving federal student aid “prepare students for gainful employment in a recognized occupation.” The rule uses debt-to-earnings ratios to assess whether career education programs at public, nonprofit, and for-profit colleges are leaving their graduates with...


The Top 10 Ways that the New Borrower Defense Rule is Worse for Borrowers

July 30, 2018

Federal law allows students whose schools have defrauded or otherwise abused them to have their loans discharged. In 2016, the Obama Administration issued new rules to govern the process for applying for and granting borrower defense discharges, and the Trump administration is rewriting the rules now in ways that make it harder for students to get relief. A joint fact sheet from...


Colleges Where Most Students Borrow and Few Repay

April 30, 2018

This analysis of College Scorecard data focuses on colleges where most students borrow and less than half of borrowers have paid down even $1 of their loan principal, 7 years into repayment. At half of all for-profit colleges, most students borrow and few can repay. African-American students, Pell Grant recipients, and first-generation students all disproportionately enroll...