Data in a new online tool raise questions about how well public and nonprofit colleges and universities are doing in helping students earn enough to repay their debt.
Only about 60 percent of programs at private nonprofit institutions, and 70 percent of those at public colleges and universities, would pass the Obama administration’s gainful-employment test, if it were in place and applied to them, according to an online tool developed by a conservative Texas policy group.
Coming amid a stalemate over how to proceed with college accountability after Education Secretary Betsy DeVos repealed the gainful-employment rule in July, the tool made public by the Texas Public Policy Foundation was aimed in part to further the idea that public and nonprofit institutions — and not just for-profit colleges — should face scrutiny for how well graduates do financially.
The Obama administration rule subjected colleges and universities to a loss of financial aid funding if too large a share of their graduates do not make enough to repay their student debt. While nondegree programs at public and private nonprofit colleges were subject to the rule, it was controversial for being aimed primarily at for-profit institutions. In repealing the measure, DeVos said it unfairly targeted colleges and universities based on their tax status.