Program Integrity Final Rule Gainful Employment

Lays the groundwork for future, substantial changes regarding gainful employment programs Establishes new reporting and disclosure requirements for schools Includes virtually all programs offered by for- profit schools, and all non-degree (certificate) programs offered by public and nonprofit schools §600.2

Gainful Employment Disclosures are intended to provide prospective students with answers to these questions: What specific job(s) is the program designed to prepare me to perform? How successful have graduates of the program been in securing employment in the targeted job(s)? Do students generally graduate from the program within the expected (normal) amount of time? §668.6(b)

Gainful Employment Disclosures (cont’d) What is the total cost of the program that I will need funding to cover? How much loan debt (federal, private, and school-based) do students typically incur in the program? §668.6(b)

Gainful Employment “On-time” completion rate 1. Determine number of students who completed the program during the most recently completed award year 2. Determine number of students in step (1) who completed program within normal time 3. Divide number of students in step (2) by total number of completers in step (1) and multiplying by 100 §668.6(b)

Gainful Employment Data must be disclosed prominently: On school’s Website for each program and In school’s promotional materials §668.6(b)(2)

Gainful Employment Annual reporting to the Department: Beginning in 2011, with data from the through award years First data submission due by October 1, 2011 Time period rolls forward a year at a time in future years If any data is unavailable, school must explain the reason to the Department §668.6(a)

Gainful Employment Annual reporting must include: Information to identify each student who completed a program during an award year, Classification of Instructional Program (CIP) code for that program, Date student completed the program, and Amounts student received from private educational loans and school financing plans §668.6(a)(1)

Gainful Employment New programs School must notify the Department at least 90 days before the first day of class when it intends to offer a new program that prepares students for gainful employment in a recognized occupation Unless required to obtain approval, school may proceed to offer the program as planned §600.10(c); §600.20(d)

Gainful Employment Notice to the Department must include: How the school determined need for the new program How the program was designed to meet market needs How the program was reviewed or approved by, or developed in conjunction with, relevant entities Description of any wage analysis performed by school for program Confirmation that program is accredited §600.10(c)

Gainful Employment Final rules define “additional educational program” The program has a different CIP code than the school’s other programs The program has the same CIP code, but leads to a different degree or certificate The school’s accrediting agency considers the program to be different §600.10(c)

Gainful Employment Outcome of notice to the Department: School may be required to obtain approval If not, school may offer program as planned §600.10(c)

Gainful Employment New Gainful Employment information page on IFAP that includes: Legislation and Legal Notices Resources and Links