The regulations comprise a revitalized Gainful Employment rule and the introduction of a Financial Value Transparency framework.
The regulations comprise a revitalized Gainful Employment rule and the introduction of a Financial Value Transparency framework.
The Biden-Harris Administration has unveiled final regulations aimed at providing safeguards against unaffordable student debt and low postsecondary earnings.
The regulations comprise a revitalized Gainful Employment rule and the introduction of a Financial Value Transparency framework, according to a press statement.
Easing burden
Under the revitalized GE rule, approximately 700,000 students per year will be shielded from career training programs that result in graduates being burdened by unmanageable loan repayments or earnings no better than those without postsecondary education in their respective states.
Meanwhile, the new FVT framework represents a significant step forward by furnishing students in all programs with unprecedented insight into the net costs of postsecondary education and expected financial outcomes.
It also compels prospective students to acknowledge viewing this information before enrolling in certificate or graduate programs that are determined to lead to unaffordable debt levels.
“Today’s final rules answer President [Joe] Biden’s call to hold colleges accountable for rising costs and protect students from unaffordable college debt,” said US Secretary of Education Miguel Cardona.
He added that they are addressing a broken system and ensuring that students are informed about college programs with a history of high debts, low earnings and poor career prospects before taking out loans.
“The Biden-Harris administration believes that when students invest in higher education, they should get a solid return on their investment and a greater shot at the American dream,” Cardona said.
Safeguarding students
The department estimates that these regulations will safeguard nearly 700,000 students annually who would otherwise enroll in nearly 1,700 underperforming programs. Furthermore, the FVT framework will require acknowledgements from approximately 400 graduate programs, which collectively enroll about 120,000 students.
These final regulations are a pivotal part of the Biden-Harris Administration’s commitment to preserving postsecondary education as a means of equal opportunity, upward mobility, and global competitiveness.
The administration has already approved over $117 billion in student loan forgiveness for more than 3.4 million borrowers.
Moreover, it has championed the largest increase in Pell Grants in a decade and aims to double the maximum award by 2029.
Biden also continues to advocate for tuition-free community college and tuition assistance at Historically Black Colleges and Universities, Tribal Colleges and Universities, and Minority-Serving Institutions.
