| Title: |
How the Gainful Employment Rule Will Affect Student Loan Repayment |
| Language: |
English |
| Authors: |
Jason Delisle; Jason Cohn; Urban Institute, Center on Education Data and Policy |
| Source: |
Urban Institute. 2023. |
| 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: |
8 |
| Publication Date: |
2023 |
| Sponsoring Agency: |
Stand Together Trust; Bill and Melinda Gates Foundation |
| Intended Audience: |
Policymakers |
| Document Type: |
Reports - Descriptive |
| Education Level: |
Higher Education; Postsecondary Education |
| Descriptors: |
Educational Policy; Standards; Higher Education; Loan Repayment; Student Loan Programs; Federal Aid; College Graduates; Salary Wage Differentials; Salaries; Employment; Debt (Financial); Employment Level; Quality of Working Life; Work Environment |
| Abstract: |
The Biden administration is pursuing two higher education policies through a series of rulemaking processes that aim to make higher education more affordable and less risky for students. One policy focuses on the system's back end by helping students repay their loans, and the other focuses on the front end by cutting off access to federal aid for educational programs where graduate earnings are consistently low. The administration's new income-driven repayment (IDR) plan for student loans is the back-end policy, and the gainful employment (GE) rule is the front-end policy. In this brief, the authors estimate how much the Biden administration's GE and IDR policies might complement one another by estimating repayment rates for loans repaid in IDR before and after the GE rule goes into effect. This approach gauges how well the two policies align and can show how much the GE rule screens out programs where typical borrowers' debt and earnings profiles are likely to lead to loan forgiveness in IDR. The approach also can reveal how much debt will be left unpaid under the Biden IDR plan in programs that are currently exempt from GE. That information can help policymakers consider whether additional quality assurance policies may be necessary and whether loan forgiveness benefits in the Biden IDR plan should be targeted differently. |
| Abstractor: |
ERIC |
| Entry Date: |
2024 |
| Accession Number: |
ED638072 |
| Database: |
ERIC |