Tuition-to-Earnings Limits: An Alternative to the Gainful Employment Rule for Higher Education Accountability. An Essay for the Learning Curve
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| Title: | Tuition-to-Earnings Limits: An Alternative to the Gainful Employment Rule for Higher Education Accountability. An Essay for the Learning Curve |
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| Language: | English |
| Authors: | Delisle, Jason, Cohn, Jason, Urban Institute |
| Source: | Urban Institute. 2022. |
| Availability: | Urban Institute. 2100 M Street NW, Washington, DC 20037. Tel: 202-261-5687; Fax: 202-467-5775; Web site: http://www.urban.org |
| Peer Reviewed: | N |
| Page Count: | 11 |
| Publication Date: | 2022 |
| Sponsoring Agency: | Walton Family Foundation Bill and Melinda Gates Foundation |
| Document Type: | Reports - Evaluative |
| Education Level: | Higher Education Postsecondary Education |
| Descriptors: | Employment Level, Salaries, College Graduates, Education Work Relationship, Federal Regulation, College Programs, Accountability, Debt (Financial), Student Financial Aid, Eligibility, Tuition, Program Costs, Higher Education, Educational Legislation, Federal Legislation |
| Laws, Policies and Program Identifiers: | Higher Education Act 1965 |
| Abstract: | The Biden administration is developing regulations around gainful employment (GE) that would protect students from career-oriented college programs that don't adequately serve their students. A draft GE rule released earlier this year would require that graduates of certificate programs at public and nonprofit colleges and nearly all programs at for-profit colleges meet a debt-to-earnings test to be eligible for federal aid. Using debt to measure value involves major limitations, however, and programs with poor outcomes can pass a debt-to-earnings test if students finance their tuition with federal grant aid or out-of-pocket funds instead of loans. Using data to examine the effects of several thresholds, the authors analyze a tuition-to-earnings test for the GE rule and compare it with the effects of the Biden administration's proposed debt-to-earnings test. This test more directly measures what a program costs, is not affected by the share of students borrowing, and measures prices charged to all students regardless of the type or amount of federal aid they received. [Additional funding for this essay was provided by the Stand Together Trust.] |
| Abstractor: | ERIC |
| Entry Date: | 2023 |
| Accession Number: | ED625735 |
| Database: | ERIC |
| Abstract: | The Biden administration is developing regulations around gainful employment (GE) that would protect students from career-oriented college programs that don't adequately serve their students. A draft GE rule released earlier this year would require that graduates of certificate programs at public and nonprofit colleges and nearly all programs at for-profit colleges meet a debt-to-earnings test to be eligible for federal aid. Using debt to measure value involves major limitations, however, and programs with poor outcomes can pass a debt-to-earnings test if students finance their tuition with federal grant aid or out-of-pocket funds instead of loans. Using data to examine the effects of several thresholds, the authors analyze a tuition-to-earnings test for the GE rule and compare it with the effects of the Biden administration's proposed debt-to-earnings test. This test more directly measures what a program costs, is not affected by the share of students borrowing, and measures prices charged to all students regardless of the type or amount of federal aid they received. [Additional funding for this essay was provided by the Stand Together Trust.] |
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