Department of Education finally issues the gainful employment rules for proprietary colleges

The ED finally issued the rules for measuring gainful employment in proprietary colleges.  The rules will impose a two-part test for gradutes of vocational programs, involving both earnings-to-loan repayment ratios, as well as default rates.  ED estimates that under the rules, 5 percent of proprietaries will be forced out of the Title IV federal student aid programs entirely, and another 55 percent will see their growth restricted by the regs.

Marketplace covered it this morning, including a short quote from me (here's a link to the audio of the story), as did the Chronicle of Higher Education and Inside Higher Ed.