WASHINGTON – Chairman Bobby Scott (VA-03) issued the following statement after the Department of Education released the final Gainful Employment rule.
“Repealing – rather than revising or replacing – the Gainful Employment rule will prop up low-quality for-profit colleges at the expense of students and taxpayers. According to the Education Department’s own analysis, this decision will cost taxpayers nearly $5 billion in federal financial aid, which will go to college programs that have failed to meet the existing standard and would have otherwise closed.
“The decision to eliminate clear enforcement standards does not absolve schools of their legal obligation to provide students a worthwhile education that leads to gainful employment. But by eliminating this rule without enforcing any alternative standard, the Education Department is giving low-quality, for-profit colleges a free pass to charge high tuition for worthless credentials that leave students with insurmountable debt.
“Today’s announcement underscores the need for Congress to pass a comprehensive reauthorization of the Higher Education Act that protects students and taxpayers from low-quality for-profit schools.”