ED Releases Final Rule for Gainful Employment and Financial Value Transparency
Published October 30, 2023
By AACOM Government Relations
Advocacy Federal Policy Financial Aid OME Advocate
- Last month, the U.S. Department of Education (ED) released the final rule for their gainful employment (GE) and financial value transparency (FVT) regulations.
- The GE rule assesses whether programs offered by private for-profit institutions, including some colleges of osteopathic medicine, and certificate programs at all types of colleges provide graduates with sufficient earnings relative to their educational debt burden. Programs that fail to meet these standards for two of three consecutive years will have their eligibility to participate in federal aid programs revoked for at least three years.
- The FVT rule will use the same assessment standards as the GE rule and require all higher education programs to report costs and earnings data, which will be published on a site run by ED. The Department will require students at programs that fail the earnings or debt assessments to complete an acknowledgment that the program has “low earnings” or “high debt burden” prior to enrollment and disbursement.
- The rules were published in the Federal Register on October 10, 2023 and will go into effect on July 1, 2024. For more information, see AACOM’s analysis.