Department of Education Proposes PEER Project Policy Recommendation on Gainful Employment During Negotiated Rulemaking

FOR IMMEDIATE RELEASE
March 9, 2022

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Department of Education Proposes PEER Project Policy Recommendation on Gainful Employment During Negotiated Rulemaking
PEER Project Praises the Department’s Proposal of a High School Earnings Threshold

The Department of Education included a high school earnings threshold as a measure under the Gainful Employment rule in its latest issue paper, released as part of the Negotiated Rulemaking process. The Postsecondary Equity & Economics Research (PEER) Project — a joint initiative between academics at George Washington University and Columbia University and attorneys at Student Defense — issued this policy recommendation earlier this year.

Using a High School Earnings Benchmark to Measure College Student Success: Implications for Accountability and Equity, published by Stephanie Cellini and Kathryn Blanchard in January, examines metrics that compare the earnings of former college students to those of young high school graduates as a measure of program effectiveness.

“Educational programs that don’t provide students with an adequate return on their investment simply shouldn’t be allowed to draw federal student aid funding,” said Cellini, Professor of Public Policy and Public Administration, and Economics at George Washington University who leads PEER’s academic research. “It’s encouraging to see the Department taking proactive steps during this rulemaking period that will better serve students.”

The paper also recommends the Department reinstate the 2014 Gainful Employment debt-to-earnings rule and other measures that would reduce the risk of students taking on unnecessary student debt, particularly at for-profit institutions that have historically fallen short of meeting gainful employment metrics.

“It’s critical that the Department continues working to help students invest their time and money in programs that lead to gainful employment instead of crushing debt,” said Libby DeBlasio Webster, PEER Project Co-Director and Student Defense Senior Counsel. “The PEER Project will continue to research and develop policy recommendations that shield students from being defrauded and increase their financial mobility after graduation.”

A full copy of the report can be found on the PEER Project website.