The Higher Education Act (HEA) requires that all career education programs receiving federal student aid “prepare students for gainful employment in a recognized occupation.” On May 19, 2023, the US Department of Education Secretary published proposed new regulations to promote transparency, competence, stability, and effective outcomes for students in the provision of postsecondary education – and invited comments to the proposed regulations (comment period closed June 20, 2023).  The regulations would make improvements in six areas of gainful employment (GE); financial value transparency; financial responsibility; administrative capability; certification procedures; and Ability to Benefit (ATB). (Federal Register)

The revised Gainful Employment Program Accountability Framework (Gainful Employment-GE) rule took effect July 1, 2024. Under this rule, the Department assesses whether programs offered by private for-profit institutions and certificate programs at all types of colleges meet the statutory requirement to prepare students for gainful employment in a recognized occupation using two separate measures.

• Share of annual earnings the typical graduates need to devote to paying their debt (“debt-to-earnings ratio”) must be less than or equal to 8%, or less than or equal to 20% of their discretionary earnings (defined as annual earnings minus 150% of the federal poverty guideline). This metric captures whether a program’s debt is affordable.
• At least half of graduates have higher earnings than a typical high school graduate in their state’s labor force who never enrolled in postsecondary education. This "earnings premium" assesses whether the program enhances its students’ earnings potential.