The Biden administration is finalizing a rule that could potentially reduce federal funding for university programs that consistently burden their graduates with low salaries and high student loan debt. This policy, known as “gainful employment,” primarily impacts for-profit colleges and certificate programs at mainstream universities. The rule, originally proposed in May, seeks to revive an Obama-era policy that was dismantled by the Trump administration. Although the rule is set to take effect in July 2024, the earliest disqualification from federal funding would be in 2026. To remain eligible for federal money, programs must pass specific tests, and those that fail twice within a three-year period will lose access to funding.
According to estimates by the Education Department, approximately 700,000 students are expected to be protected each year under this rule. These students may have otherwise enrolled in one of nearly 1,700 low-performing programs. Institutions that do not meet the required standards must notify their students about the possibility of losing federal aid. Additionally, the new rule includes the release of new data that will provide students with information on the actual cost of programs across all types of colleges, including tuition, fees, books, student debt levels, and post-graduation earnings.
Borrower advocates have welcomed this rule as a much-needed protection for students. They argue that it enhances transparency within the system and holds colleges accountable for their outcomes. The Education Department intends to publish detailed data on the costs incurred by students for individual programs, as well as their post-graduation earnings, thereby further promoting transparency.
Overall, this article appears to be approximately 85% factual news and 15% editorial in nature, with minimal political slant. It cites multiple sources, including borrower advocates and the Education Department, presenting various perspectives on the issue. The original article, published by The Associated Press, provides objective information about the rule and its potential impact on colleges and universities.
This article is 85% likely factual news based on my current analysis.