Under the rule of paid employment proposed by the Biden administration, 40 percent of programs in profit universities would fail, potentially risking their ability to qualify for federal students for students, according to a new study published in the Wednesday by the University Access and Success Institute.

Under the proposed change, according to the study, almost twice the number of profit universities would not comply with paid employment standards compared to the original rule of 2014.

"He is supposed to Ticas "The failed programs, especially the disproportionately substantial proportion of GE programs in profit failure, in fact do not guarantee that students an adequate return of their education."

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The changes proposed to paid employment

remunerated employment is a metric used by the Department of Education to measure if the graduates of the University of Student Debt leave the University is proportional to your relative earnings. This metric is used to ensure that university graduates do not assume disabled levels of student debt and also to determine which programs are leading to well -paid jobs.

For a program to approve the paid employment rule, you, you, you, you had to demonstrate that student loans payments are less than 8 percent of their total income. If the average postgraduate debt ratio of an program exceeds 12 percent, the program would fail to be paid employment, and if the program continued failing for two years, there was a risk of losing eligibility for federal aid.


The first paid employment rule was revoked under the Trump administration in 2019, eliminating this verification of the results of educational programs. Remunerated employment supporters argued that without the metric, universities, particularly profit universities, could not be evaluated to ensure that graduates were in jobs with income necessary to cover their student debt.

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"I think there is a lot of concern, obviously, that there are some programs that constantly lead to bad results for their students and that there should be no program that leads to bad results for their students," said Jon Fansmith, vice president vice president of relations of relations Government in the American Education Council. "Then, in terms of paid employment as a tool to prevent that from happening, I think schools and universities support that."

In January, the Department of Education proposed to restore the remunerated employment metric. As part of this proposal, the department recommended comparing the profits of graduates with those of high school graduates in their states. According to this system, the income of a graduate with a general education title would be compared with those of a 25 -year -old with a high school diploma in addition to the previously used debt / income relationship. (The investigation is carried out on the graduates as a whole, not individually).

The Department of Education has been negotiating with the interested parties to reach a consensus on the final language of the new rule of employment paid through the negotiated negotiated process realization of rules, which is expected to conclude At the end of summer. The department is not expected to find an agreement with the leaders in higher education on this subject.

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