One of the many issues currently derailing bipartisan agreement on federal Higher Education Act reauthorization is how to treat for-profit colleges. Democrats and their ideologically-aligned interest groups, such as Elizabeth Warren and the American Federation of Teachers, have called on Congress to cut off all federal funds to for-profit colleges—a position that few publicly took before this year. Meanwhile, Republicans have generally pushed for all colleges to be held to the same accountability standards, as evidenced by the Department of Education’s recent decision to rescind the Obama-era gainful employment era regulations that primarily focused on for-profit colleges. (Thankfully, program-level debt to earnings data—which was used to calculate gainful employment metrics—will be available for all programs later this year.)
I am spending quite a bit of time thinking about gainful employment right now as I work on a paper with one of my graduate students that examines whether programs at for-profit colleges that failed the gainful employment metrics shut down at higher rates than similar colleges that passed. Look for a draft of this paper to be out later this year, and I welcome feedback from the field as soon as we have something that is ready to share.