Biden strengthens rules to keep schools from saddling students with unaffordable debt
Business
If they can’t prove their worth, the schools lose access to federal student aid
(Web Desk) - All schools of higher education will face stricter requirements proving certain certificate programs lead to better employment opportunities for graduates under a finalized federal rule.
If they can’t prove their worth, the schools lose access to federal student aid.
The Biden administration this week reinstated a stricter gainful employment rule, toughening one accountability metric and adding a new one to better gauge a school’s ability to improve their students’ earnings potential after graduation.
The rule applies to certificate programs at all institutions, including public and private nonprofit colleges — a change from the previous rule that only applied to for-profit schools.
Additionally, all schools will have to provide prospective students with a new financial value transparency framework that outlines the actual costs to get a degree from that institution and the financial outcomes students can expect.
The moves are part of the Biden administration’s latest efforts to rein in costs in higher education and aims to protect hundreds of thousands of young Americans from going into unaffordable debt. The finalized rules build on proposals Biden announced previously.
"We are fixing a broken system and making sure that students know, before they take out loans, when college programs have a history of leaving graduates with high debts, low earnings, and poor career prospects," Education Secretary Miguel Cardona said in a press release.
"The Biden-Harris administration believes that when students invest in higher education, they should get a solid return on their investment and a greater shot at the American dream."
