{"id":7543,"date":"2018-08-11T12:23:44","date_gmt":"2018-08-11T16:23:44","guid":{"rendered":"https:\/\/news.elearninginside.com\/?p=7543"},"modified":"2018-08-11T12:23:44","modified_gmt":"2018-08-11T16:23:44","slug":"devos-rolls-back-gainful-employment-regulations-the-internet-reacts","status":"publish","type":"post","link":"https:\/\/news.elearninginside.com\/devos-rolls-back-gainful-employment-regulations-the-internet-reacts\/","title":{"rendered":"DeVos Rolls Back Gainful Employment Regulations; The Internet Reacts"},"content":{"rendered":"

On Friday, Secretary of Education Betsy DeVos announced plans to all but do away with Obama era regulations imposed on for-profit colleges to faithfully report on and help secure gainful employment for their graduates. <\/span><\/p>\n

Under current policy, the DoE measures gainful employment by looking at a college\u2019s graduates\u2019 debt-to-earnings. Regulators look at two metrics: annual earnings rate and discretionary income rate. The first calculates the percent of a graduate\u2019s annual salary that goes to loan repayment. The second calculates the annual loan repayment as a ratio to a graduates\u2019 average earnings \u201cminus 150% of the poverty guideline<\/span><\/a>.\u201d<\/span><\/p>\n

For both figures, a rate or percentage of 8% is considered passing. Rates in excess of 12% are considered failing. In other words, if a graduated class pays on average more than 12% of their annual earnings in student loans every year, the DoE will remove access to Title IV Federal Aid\u2014the means by which many for-profits take in 90%+ of their total income. <\/span><\/p>\n

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DeVos has appointed numerous industry insiders to her department, including a former dean at DeVry University. U.S. Air Force.<\/figcaption><\/figure>\n

But all this will change. “Students deserve useful and relevant data when making important decisions about their education post-high school,” said U.S. Secretary of Education Betsy DeVos in a statement. “That’s why instead of targeting schools simply by their tax status, this administration is working to ensure students have transparent, meaningful information about all colleges and all programs. Our new approach will aid students across all sectors of higher education and improve accountability.”<\/span><\/p>\n

DeVos\u2019 proposed rule will now require non-profits as well as for-profits to report debt to earnings statistics, among other metrics. But it will no longer determine eligibility for Title IV funds.<\/span><\/p>\n

DeVos has allowed for a 30-day period of public comment during which individuals can weigh in either for or against the measure. If nothing changes, the rescission of gainful employment regulations will go into effect July 1, 2019.<\/span><\/p>\n

Hot Takes, Nuance, and Silence<\/h1>\n

In the corners of the internet where liberals, educators, and regulators frequent, there was an outpouring of anger and resistance to the rescission. <\/span><\/p>\n

\u201cProfits before people\u2014@BetsyDeVosEd is back at it,\u201d tweeted Army veteran and Virginia House Democratic Candidate Dan Helmer. \u201cThis move will hurt tens of thousands of Americans each year, including many of our troops.\u201d<\/span><\/p>\n

Many other reactions fell into the \u2018this is bad\u2019 category. But amongst think tanks, for-profit industry insiders, and conservative media outlets, there was a more nuanced picture to be painted.<\/span><\/p>\n

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Profits before people \u2014 \u2066@BetsyDeVosED<\/a>\u2069 is back at it. This move will hurt tens of thousands of Americans each year, including many of our troops. https:\/\/t.co\/I1WARL6JbH<\/a><\/p>\n

— Dan Helmer (@HelmerVA) August 11, 2018<\/a><\/p><\/blockquote>\n