Gainful Employment Rules have been adopted by the Department of Education as of this summer. Some experts are stating that as a result of this ruling up to one third of all programs presently being offered will have to go “on probation.” Subject to a successful legal appeal by APSCU, some schools will start to see “probation deficiency letters” at the end of this year.
A deficiency letter simply states that a given program(s) that you offer does not meet Gainful Employment Guidelines. A deficiency is loosely described as when student loan payments exceed 12% of first year’s gross income. If this happens two out of three years, a school cannot use federal student loan funding. If grad payments float between eight and twelve percent four out of five years, the school loses its funding. Read more