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Department Issues Guidance in Response to Court’s Gainful Employment Ruling

As we reported last week, U.S. District Court for the District of Columbia has vacated part of the U.S. Department of Education’s gainful employment regulations. The Court instructed the Department to review the regulations for further action. The Department is now evaluating next steps, but in the interim has released the following guidance for postsecondary institutions.

  • Reporting – Institutions are not required to submit gainful employment reports for the just ended 2011-2012 award year. However, institutions may voluntarily submit corrections to previously reported gainful employment information.
  • New Gainful Employment Programs – Institutions do not have to provide the Department with the 90 day notice of intent to offer a new gainful employment program, and approvals for new programs are only required as indicated in the regulations in effect prior to July 1, 2011.
  • Disclosures – The Court left in place the regulations that require institutions to disclose certain information about each of their Gainful Employment Programs. Those regulations took effect July 1, 2011 and state that institutions must use the disclosure template provided by the Department when it becomes available. The Department is reviewing the disclosure template to ensure that it complies with the Court’s decision, and will announce further information on this issue soon. Institutions are not required to update their disclosures until further information is provided later this month.

Nancy Conneely, Public Policy Manager

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