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Program Integrity: Gainful Employment-New Programs rule (2011)
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The Program Integrity: Gainful Employment-New Programs rule is a significant rule issued by the U.S. Department of Education effective July 1, 2011, that amended department regulations concerning gainful employment under the Higher Education Act of 1965. The rule aimed to develop an approval process for institutions to offer educational programs aimed at providing gainful employment opportunities.[1]
Timeline
The following timeline details key rulemaking activity:
- July 1, 2011: The final rule took effect.[1]
- October 29, 2010: The Department of Education published a final rule.[1]
- September 9, 2010: The Department of Education closed the comment period on the second proposed rule.[2]
- August 2, 2010: The Department of Education closed the comment period on the first proposed rule.[3]
- July 26, 2010: The Department of Education published a notice of proposed rulemaking to establish measures for program eligibility and opened the comment period.[2]
- June 18, 2010: The Department of Education published a notice of proposed rulemaking to improve program integrity and opened the comment period.[3]
- September 9, 2009: The Department of Education announced the establishment of two negotiated rulemaking committees to prepare proposed regulations to implement changes made to the Higher Education Act of 1965.[4]
Background
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President Lyndon Johnson (D) signed the Higher Education Act (HEA) into law on November 8, 1965, in an effort to strengthen educational resources and financial assistance for college students by increasing federal grants to universities, creating low-interest student loans, and issuing scholarships. Title IV of the HEA established standards for offering financial assistance to college students, which governed Student Assistance General Provisions regulations.[5]
In response to amendments made to the HEA, the Department of Education issued two proposed rules in an effort to further the stated goals of the HEA. After reviewing comments from the two proposed rules, the department issued three separate final regulations to address issues with program integrity, gainful employment, and measures for determining educational program eligibility.[1]
The regulations regarding gainful employment programs were further amended by the Obama administration in 2015. The 2015 rule was later rescinded in 2019 by the Trump administration.
Summary of the rule
The following is a summary of the rule from the rule's entry in the Federal Register:
| “ | The Secretary amends the regulations for Institutional Eligibility Under the Higher Education Act of 1965, as amended (HEA), to establish a process under which an institution applies for approval to offer an educational program that leads to gainful employment in a recognized occupation.[1][6] | ” |
Summary of provisions
The following is a summary of the provisions from the rule's entry in the Federal Register:[3]
| “ | We have revised § 600.10(c), as suggested by some of the commenters, to provide that an institution must provide at least 90 days advance notice to the Department of its plans to offer a new educational program that leads to gainful employment in a recognized occupation. Section 600.10(c)(1)(v) has also been revised to provide that the Secretary may notify an institution it is required to obtain approval for a new educational program. An institution does not have to provide notice to add a non-gainful-employment program under this section, except for direct assessment programs under 34 CFR 668.10 or unless required to do so by a provision in its Program Participation Agreement. Under revised § 600.10(c)(3), an institution that is required to obtain approval from the Department for a new program, but does not obtain the Department's approval or that incorrectly determines that an educational program is an eligible program for title IV, HEA program purposes, must repay to the Secretary all HEA program funds received by the institution for that educational program, and all the title IV, HEA program funds received by or on behalf of students who enrolled in that program.
We have amended § 600.20(d) to specify that an institution must provide notice at least 90 days in advance for a new educational program that leads to gainful employment in a recognized occupation. The notice must describe how the institution determined the need for the program and how the program was designed to meet local market needs, or for an online program, regional or national market needs. The institution also must describe in the notice how the program was reviewed or approved by, or developed in conjunction with, business advisory committees, program integrity boards, public or private oversight or regulatory agencies, and businesses that would likely employ graduates of the program. Additionally, the institution must include documentation that the program has been approved by its accrediting agency or is otherwise included in the institution's accreditation by its accrediting agency, or comparable documentation if the institution is a public postsecondary vocational institution approved by a recognized State agency for the approval of public postsecondary vocational education in lieu of accreditation. In addition, an institution must include in its notice a description of any wage analysis it may have performed, including any consideration of BLS wage data that is related to the new program. The institution must also provide the date of the first day of class of the new program.
Section 600.20(d) also provides that the Department may require the institution to obtain approval of the new program, and submit additional information about it. This section also describes the factors the Department will consider in evaluating the institution's application and specifies that if the Department denies an application from an institution to offer an additional program under § 600.10(c), the Department will explain in the denial how the institution failed to demonstrate the new program would likely lead to gainful employment in a recognized occupation. The institution will be permitted to respond to the concerns raised by the Department in the denial and request reconsideration of the denial.[6] |
” |
Significant impact
- See also: Significant regulatory action
The Office of Management and Budget (OMB) deemed this rule economically significant pursuant to Executive Order 12866. An agency rule can be deemed a significant rule if it has had or might have a large impact on the economy, environment, public health, or state or local governments. The term was defined by E.O. 12866, which was issued in 1993 by President Bill Clinton.[1]
Text of the rule
The full text of the rule is available below:[1]
See also
External links
References
- ↑ 1.0 1.1 1.2 1.3 1.4 1.5 1.6 Federal Register, "Program Integrity: Gainful Employment-Debt Measures," June 13, 2011
- ↑ 2.0 2.1 Federal Register, "Program Integrity: Gainful Employment," July 26, 2010
- ↑ 3.0 3.1 3.2 Federal Register, "Program Integrity Issues," June 18, 2010
- ↑ Federal Register, "Office of Postsecondary Education; Notice of Negotiated Rulemaking for Programs Authorized Under Title IV of the Higher Education Act of 1965, as Amended," September 9, 2009
- ↑ Federal Student Aid, "Gainful Employment Information," accessed May 2, 2023
- ↑ 6.0 6.1 Note: This text is quoted verbatim from the original source. Any inconsistencies are attributable to the original source.
