2013 Negotiated Rulemaking: Gainful Employment Brian W. Jones General Counsel, Strayer University

AGENDA Background – the 2011 Rule and Subsequent Litigation Back to the Drawing Board – the 2013 Negotiated Rulemaking The Road Ahead?

2011 Rule and Litigation First GE negotiated rulemaking failed to reach consensus Final Rule included three alternative metrics: Debt-to-Annual Income Debt-to-Discretionary Income Repayment Rate Final Rule challenged by APSCU In June 2012, U.S. District Court vacates rule and affirms ED’s authority to regulate GE; in March 2013, the same District Court substantially narrows that authority

2013: Back to the Drawing Board Committee established in August; 14 non-federal negotiators Department’s initial proposal: two debt-to-income metrics Subsequent proposal: four, more onerous, required metrics Two debt-to-income metrics Program-level CDR Portfolio Repayment Rate Final proposal: two debt-to-income metrics; program-level CDR

The Road Ahead? ED has indicated it hopes to publish NPRM in “early 2014” Under Master Calendar must publish Final Rule by November 1 to have rule effective in July 2015 Uncertainty about internal drivers