College career programs will once again need to prove they won’t burden students with overwhelming debt, under a highly anticipated regulation that the U.S. Department of Education unveiled Wednesday.
The Biden administration released a draft version of what’s called the gainful employment rule in May. The plan aims to ensure students who spend significant time and money in proprietary programs reap benefits, like a sound job.
These career programs must demonstrate that their graduates earn more than the student loan debt they’ve incurred. Graduates can pay no more than 8% of their annual earnings toward debt, or no more than 20% of the earnings that the department considers discretionary, under the rule.
