I believe Gainful Employment was supposed to kick in on January 1st. Programs where students were paying more than 20% of discretionary income or 8% of total earnings would be sanctioned.
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The new administration is going to repeal this illegal law. Another Obama law that was passed through without Congress voting.
The "gainful employment" numbers are scheduled to come out in January, but I am not sure how much time there will be to make corrections. Apollo Education was given their numbers in October.
What "gainful employment" is really about is whether people can pay back their federal student loans. ED is currently making about $50B a year from student loans, but they are taking on a huge risk if defaults rise.
http://www.usnews.com/education/blogs/student-loan-ranger/2015/07/08/what-the-new-gainful-employment-rule-means-for-college-students
• Programs whose graduates have annual loan payments less than 8 percent of total earnings or less than 20 percent of discretionary earnings are considered to have passed the requirements.
• Programs whose graduates have annual loan payments between 8 percent and 12 percent of total earnings or between 20 percent and 30 percent of discretionary earnings are considered to be "in the warning zone" and at risk of failing the requirements.
• Programs whose graduates have annual loan payments greater than 12 percent of total earnings and greater than 30 percent of discretionary earnings have failed the requirements.
• Programs that fail in two out of any three consecutive years or are in the zone for four consecutive years are no longer eligible for federal student aid for a minimum of three years.
There are a few more details that are important for consumers to be aware of. Gainful employment rules apply to most programs, certificates and degrees at for-profit institutions and most nondegree and certificate programs at all other schools. Only schools or programs that participate in the federal financial aid programs fall under the rule.
The rule only measures statistics for those students who actually complete the program. This is an important distinction, because students who do not complete their programs of study have the highest rate of default. Some proponents of gainful employment believe the rule does not go far enough, because if it only counts graduates, it leaves out a substantial portion of borrowers who would likely fail to meet the threshold.
Camden what are the penalties for non- adherence to gainful employment act? I know you do not like for profit education which is fine. If you what to make an impact use facts. Right now you are just stirring the pot and nothing else. You are discrediting yourself.
@Fisherman Kid, the gainful employment information should come out in January, either through ED or the next 10Q. The latest SEC documents give us a hint about some of what is to come. And APOL should be given credit for at least planning ahead for the new rules.
He has no idea he is fishing and stirring the pot. Have you noticed his lack of posting? Why is that Camden?
Camden, you got a lot of explaining to do
What penalties? What sanctions? Explain Camdenkid and I dont mean send an ambiguous link with generalizations tell us how UOP could get fined or reprimanded for not complying within Gainful Employment rules?????!!!
Take a look at the individual campus numbers at ProPublica. Some of the numbers are graduation rates, monthly repayment cost, non-repayment rates, and default rates are horrendous
https://projects.propublica.org/colleges/?sector=6&cc=1
Fear monger. I want to be layed off. I wish it was 100% so I can get unemployment. They are going to cut 80%. Oh I am so terrorized now you dumb sh%t. I do not care . I hope my stuff is in a box Monday. You are the one full of fear posting cuts of 80%. Stir the pot. I hope you got the response you were looking for.
You think 20% is all the investment group wants cut? Chuckle. The investment group is all about slash and burn. If you are not essential to what they want to keep alive, you will no longer be a cost to the company or university. And private equity is not known for paying severance in at will employment states. It's their cash after all when the deal closes If the deal doesn't go through, 20% may be all that is left.
Leave us alone. As employees we know about 20% of us are damned to layoffs. Our decision is, do we stay or Go? I am tired of the nonsense and I am willing to volunteer to go. Others may decide to stay, which is fine. We employees are waiting for upper management to pull the trigger so we can decide.
Camden for God's sake go enjoy Thanksgiving and quit your whining!
APOL cutting 16% of its programs in response to gainful employment.
https://www.sec.gov/Archives/edgar/data/929887/000119312516776894/d300485d8k.htm