Duane Morris Alert: U.S. Department of Education Announces Delay of Gainful Employment Requirements

On June 30, 2017, the U.S. Department of Education posted a special notice in the Federal Register announcing the temporary delay of major provisions of the Gainful Employment (GE) disclosure requirements. The announcement suspends the July 1, 2017, deadline for certain Gainful Employment Disclosures and extends the deadline for all GE programs to file alternate earnings appeals.

Specifically, pursuant to the Department’s Notice:

• Institutions now have until July 1, 2018, to comply with GE disclosure requirements in 34 C.F.R. § 668.412(d), (e) that were originally due on July 1, 2017, regarding the distribution of gainful employment data directly to students and in promotional materials. This means that schools are not required beginning July 1, 2017, to distribute GE disclosures directly to students or include GE disclosures in their promotional material. However, our interpretation of the Notice is that schools must nonetheless begin using the new GE disclosure template on their websites beginning on July 1, 2017. It is our interpretation that this new guidance does not relieve non-AACS schools with failing programs who have not filed an appeal from providing the warnings required in the new template.

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