| Title: |
Tuition-to-Earnings Limits: An Alternative to the Gainful Employment Rule for Higher Education Accountability. An Essay for the Learning Curve |
| Language: |
English |
| Authors: |
Delisle, Jason; Cohn, Jason; Urban Institute |
| Source: |
Urban Institute. 2022. |
| Availability: |
Urban Institute. 2100 M Street NW, Washington, DC 20037. Tel: 202-261-5687; Fax: 202-467-5775; Web site: http://www.urban.org |
| Peer Reviewed: |
N |
| Page Count: |
11 |
| Publication Date: |
2022 |
| Sponsoring Agency: |
Walton Family Foundation; Bill and Melinda Gates Foundation |
| Document Type: |
Reports - Evaluative |
| Education Level: |
Higher Education; Postsecondary Education |
| Descriptors: |
Employment Level; Salaries; College Graduates; Education Work Relationship; Federal Regulation; College Programs; Accountability; Debt (Financial); Student Financial Aid; Eligibility; Tuition; Program Costs; Higher Education; Educational Legislation; Federal Legislation |
| Laws, Policies and Program Identifiers: |
Higher Education Act 1965 |
| Abstract: |
The Biden administration is developing regulations around gainful employment (GE) that would protect students from career-oriented college programs that don't adequately serve their students. A draft GE rule released earlier this year would require that graduates of certificate programs at public and nonprofit colleges and nearly all programs at for-profit colleges meet a debt-to-earnings test to be eligible for federal aid. Using debt to measure value involves major limitations, however, and programs with poor outcomes can pass a debt-to-earnings test if students finance their tuition with federal grant aid or out-of-pocket funds instead of loans. Using data to examine the effects of several thresholds, the authors analyze a tuition-to-earnings test for the GE rule and compare it with the effects of the Biden administration's proposed debt-to-earnings test. This test more directly measures what a program costs, is not affected by the share of students borrowing, and measures prices charged to all students regardless of the type or amount of federal aid they received. [Additional funding for this essay was provided by the Stand Together Trust.] |
| Abstractor: |
ERIC |
| Entry Date: |
2023 |
| Accession Number: |
ED625735 |
| Database: |
ERIC |