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Subpart Q – Gainful Employment (GE) Programs

§668.401 Scope and purpose. This subpart applies to an 

educational program offered by an eligible institution that is 

intended to prepare students for gainful employment in a 

recognized occupation, and establishes the rules and procedures 

under which--

(1) The Secretary determines whether the program prepares 

students for gainful employment, and the conditions under which 

the program remains eligible for title IV, HEA program funds; 

and

(2) An institution reports and discloses information about 

the program.

§668.402 Definitions.

The following definitions apply to this subpart.

Classification of instructional program or CIP: A taxonomy 

of instructional program classifications and descriptions 

developed by the U.S. Department of Education’s National Center 

for Education Statistics (NCES).

Debt-to-earnings rates (D/E rates): The percentage of a GE 

program’s annual loan payment compared to the earnings of the 

students who completed that program, as determined under 

§668.404. For purposes of this subpart, there are two D/E 
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rates: a discretionary income rate and an annual earnings rate, 

which are calculated as specified under §668.404.

Discretionary income: The difference between the mean or 

median annual earnings and 150 percent of the Poverty Guideline 

for a single person in the continental United States. The 

Poverty Guidelines are published annually by the U.S. Department 

of Health and Human Services (HHS) and are available at 

http://aspe.hhs.gov/poverty or successor site.

Gainful employment program (GE program): An educational 

program offered by an institution under §668.8(c)(3) or (d) and 

identified by a combination of the institution’s six-digit 

Office of Postsecondary Education ID (OPEID) number, the 

program’s six-digit CIP code as assigned by the institution or 

determined by the Secretary, and the program’s credential level.

(a) The Secretary determines whether an institution 

accurately assigns a CIP code for a GE program based on the 

classifications and program codes established by NCES; and

(b) The credential levels for identifying a GE program 

are: less than one year undergraduate certificate or diploma, 

one year or longer but less than two years undergraduate 

certificate or diploma, two years or longer undergraduate 

certificate or diploma, associate degree, bachelor’s degree, 
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post-baccalaureate certificate, master’s degree, doctoral 

degree, and first-professional degree. 

Normal time: Has the same meaning as the term “normal 

time” in 34 CFR 668.41.

Student: A regular student, as defined in 34 CFR 600.2, 

who received title IV, HEA program funds. 

Two-year period: The period covering two consecutive award 

years that are--

(a) The third and fourth award years prior to the award 

year for which the D/E rates are calculated pursuant to 

§§668.403 and 668.404. For example, if D/E rates are calculated 

for award year 2014-2015, the two-year period is award years 

2010-2011 and 2011-2012; or

(b) For a program whose students are required to complete 

a medical or dental internship or residency, the sixth and 

seventh award years prior to the award year for which the D/E 

rates are calculated. For example, if D/E rates are calculated 

for award year 2014-2015, the two-year period is award years 

2007-2008 and 2008-2009. For this purpose, a required medical 

or dental internship or residency is a supervised training 

program that--

(1) Requires the student to hold a degree as a doctor of 

medicine or osteopathy, or as a doctor of dental science; 
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(2) Leads to a degree or certificate awarded by an 

institution of higher education, a hospital, or a health care 

facility that offers post-graduate training; and 

(3) Must be completed before the borrower may be licensed 

by a State and board certified for professional practice or 

service.

§668.403 Gainful employment program framework. The Secretary 

determines whether a GE program provides training that prepares 

a student for gainful employment in a recognized occupation 

pursuant to this section.

(a) Debt-to-earnings rates. For each award year, the 

Secretary, pursuant to §668.404, calculates two D/E rates, one 

rate based on discretionary income (the discretionary income 

rate) and the other rate based on annual earnings (the annual 

earnings rate), for each GE program offered by an institution. 

Based on the GE program’s D/E rates, the Secretary determines 

that the GE program is a passing program, failing program, zone 

program, or ineligible program as defined in paragraphs (b) 

through (e) of this section.

(b) Passing program. A GE program for which the--

(1) Discretionary income rate is equal to or less than 20 

percent; or
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(2) Annual earnings rate is equal to or less than eight 

percent.

(c) Failing program. A GE program for which the--

(1) Discretionary income rate is greater than 30 percent; 

and

(2) Annual earnings rate is greater than 12 percent. 

(d) Zone program. A GE program that is not a passing 

program and for which the--

(1) Discretionary income rate is greater than 20 percent 

but less than or equal to 30 percent; or

(2) Annual earnings rate is greater than eight percent but 

less than or equal to 12 percent.

(e) Ineligible program. A GE program that--

(1) Is a failing program in two out of any three 

consecutive award years for which D/E rates are calculated; or

(2) Is not a passing program in any of four consecutive 

award years for which D/E rates are calculated.

§668.404 Calculating D/E rates.

(a) General. Except as provided in paragraph (f) of this 

section for D/E rates that are not calculated for each award 

year, the Secretary calculates D/E rates for a GE program as 

follows:
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(1) Discretionary income rate = annual loan payment / (the 

higher of the mean or median annual earnings – (1.5 x Poverty 

Guideline)).

(2) Annual earnings rate = annual loan payment / the 

higher of the mean or median annual earnings.

(b) Annual loan payment. The Secretary determines the 

annual loan payment for a program by--

(1) Determining the median loan debt of the students who 

completed the program during the two-year period, based on the 

loan debt incurred by each student as determined under paragraph 

(d) of this section; and 

(2) Amortizing the median loan debt over a 10-year 

repayment period using the annual interest rate on Federal 

Direct Unsubsidized Loans for undergraduate students in effect 

on the day the Secretary calculates the D/E rates.

(c) Annual earnings. (1) The Secretary obtains from the 

Social Security Administration (SSA) the most currently 

available mean and median annual earnings of the students who 

completed the program during the two-year period and who are not 

excluded under paragraph (e) of this section; and

(2) The Secretary uses the higher of the mean or median 

annual earnings to calculate the D/E rates. 
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(d) Loan debt. In determining the loan debt for a 

student, the Secretary--

(1) Includes FFEL loans and Direct loans that the student 

received for attendance in the GE program (except for PLUS Loans 

made to parents of dependent students or Direct Unsubsidized 

Loans that were converted from TEACH Grants), any private 

education loans, and any debt owed to the institution by the 

student upon the student’s completion of the program;

(2) Attributes all of the loan debt incurred by the 

student for attendance in any GE program at the institution to 

the highest credentialed GE program completed by the student at 

the institution; and

(3) Excludes any loan debt incurred by the student for 

attendance in programs at other institutions. However, the 

Secretary may include loan debt incurred by the student for 

attending programs at other institutions if the institution and 

the other institutions are under common ownership or control, as 

determined by the Secretary in accordance with 34 CFR 600.31. 

(e) Exclusions. For the award year the Secretary 

calculates the D/E rates for a GE program, the Secretary 

excludes a student from the rate calculations if the Secretary 

determines that--
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(1) One or more of the student’s loans were in a militaryrelated deferment status for at least 60 days during the 

calendar year for which the Secretary obtains earnings 

information under paragraph (c) of this section; 

(2) One or more of the student’s FFEL loans or Direct 

Loans are either under consideration by the Secretary, or have

been approved, for a discharge on the basis of the student’s 

total and permanent disability, under 34 CFR 682.402 and 

685.212;

(3) The student was enrolled on at least a half-time basis 

for at least 60 days in an eligible institution during the 

calendar year for which the Secretary obtains earnings 

information under paragraph (c) of this section; 

(4) The student completed a higher credentialed GE program 

at the institution subsequent to completing the program; or

(5) The student died. 

(f) Rates not calculated. The Secretary does not 

calculate D/E rates for a GE program if--

(1) Fewer than 10 students completed the program during 

the two-year period;

(2) SSA does not provide the mean and median earnings for 

the program as provided under paragraph (c) of this section; or

(3) The annual or discretionary earnings are zero or less.
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§668.405 Issuing and challenging D/E rates. 

(a) Overview. For each award year beginning with award 

year 2014-2015, the Secretary determines the D/E rates for a GE 

program by--

(1) Creating a list of the students from the applicable 

two-year period, as explained in paragraph (b) of this section;

(2) Allowing an institution to correct the information 

about the students on the list, as explained in paragraph (c) of 

this section;

(3) Obtaining from SSA the mean and median annual earnings 

of the students on the list, as explained in paragraph (d) of 

this section; 

(4) Calculating draft D/E rates, as explained in paragraph 

(e) of this section; 

(5) Allowing the institution to challenge the median loan 

debt used to calculate the draft D/E rates, as explained in 

paragraph (f) of this section;

(6) Calculating final D/E rates, as explained in paragraph 

(g) of this section; and

(7) For a failing program, allowing the institution to 

appeal the final D/E rates by submitting an alternate earnings 

data survey, as explained in §668.406.
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(b) Creating the list of students. (1) The Secretary 

selects the students to be included on the list by--

(i) Identifying the students who completed the program 

during the applicable two-year period from the data provided by 

the institution under §668.410; and

(ii) Removing any student who is excluded under 

§668.404(e).

(2) The Secretary presumes that the list of students and 

the identity information for those students are correct unless 

the institution provides evidence to the contrary. The 

institution bears the burden of proof that the list is 

incorrect. 

(c) Institutional corrections to the list. (1) The 

Secretary provides the institution with the list. No later than 

30 days after the date the Secretary provides the list, the 

institution may-- 

(i) Provide evidence showing that a student should be 

included on or removed from the list; or

(ii) Correct or update the identity information, such as 

name, social security number, or date of birth, provided for a 

student on the list.
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(2) After the 30-day period expires, the institution may 

no longer seek to correct the list of students or revise the 

identity information of those students. 

(3) The Secretary considers the evidence provided by the 

institution and either accepts the correction or notifies the 

institution of the reasons for not accepting the correction. If 

the Secretary accepts the correction, the Secretary uses the 

corrected information to create the final list.

(d) Obtaining earnings data. The Secretary submits the 

final list to SSA. In response, SSA submits to the Secretary--

(1) The mean and median earnings of the students on the 

list whom SSA has matched to SSA earnings data, in aggregate and 

not in individual form; and 

(2) The number, but not the identities, of students on the 

list that SSA could not match.

(e) Calculating draft D/E rates. (1) The Secretary uses 

the higher of the mean or median annual earnings submitted by 

SSA to calculate draft D/E rates for a GE program.

(2) If SSA reports that it was unable to match one or more 

of the students on the final list, the Secretary does not 

include in the calculation of the median loan debt the same 

number of the highest loan debts as the number of students whose 

earnings SSA did not match. For example, if SSA is unable to 
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match three students, the Secretary does not include the three 

highest loan debts in the calculation of the median loan debt. 

(f) Institutional challenges to draft D/E rates. 

(1)(i) The Secretary notifies the institution of the draft 

D/E rates for a GE program and provides the mean and median 

earnings obtained from SSA and the individual student loan 

information used to calculate the rates, including the loan debt 

for each student on the list.

(ii) The draft D/E rates and the data described in 

paragraphs (b) through (f) of this section are not considered 

public information. 

(2) The Secretary presumes that the loan debt information 

is correct unless the institution provides evidence that the 

information is inaccurate. The institution bears the burden of 

proof to show that the loan debt information is incorrect, and 

to show how it should be corrected. 

(3) No later than 45 days after the Secretary notifies an 

institution of the draft D/E rates for a GE program, the 

institution may challenge the accuracy of the loan debt 

information that the Secretary used to calculate the median loan 

debt for the program by submitting evidence showing that the 

median loan debt calculated by the Secretary is inaccurate. 
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(4) In a challenge under this section, the Secretary does 

not consider--

(i) Any objections to the mean or median annual earnings 

that SSA submitted to the Secretary; 

(ii) More than one challenge to the draft D/E rates for a 

GE program for an award year; or

(iii) Any challenge that is not timely submitted.

(5) The Secretary considers any evidence provided by an 

institution challenging the median loan debt and notifies the 

institution of whether the challenge is accepted or the reasons 

why the challenge is not accepted. 

(6) If the data from an accepted challenge change the 

median loan debt of the program, the Secretary recalculates the 

program’s draft D/E rates. 

(7) Except as provided under §668.406, an institution that 

does not timely challenge the draft D/E rates for a program 

waives any objection to those rates.

(g) Final D/E rates. (1) Upon expiration of the 45 day 

period and subject to resolution of any challenge under 

paragraph (f) of this section, a GE program’s draft D/E rates 

(including those determined pursuant to §668.408) constitute 

final D/E rates.
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(2) The Secretary informs the institution of the final D/E 

rates for each of its GE programs by issuing the notice of 

determination described in §668.407(a). 

(3) After the Secretary provides the notice of 

determination, the Secretary may publish the final D/E rates. 

(h) Conditions for corrections, challenges, and appeals. 

An institution must ensure that any material that it submits to 

make any correction, challenge, or appeal is complete, timely, 

accurate, and in a format acceptable to the Secretary as 

described in this subpart and consistent with any instructions 

provided to the institution with the notice of its draft D/E

rates and the notice of determination. 

§668.406 Alternate earnings appeals. 

(a) General. An institution may appeal a final D/E rate 

that would render a GE program a failing program by proving that 

the difference between the mean or median annual earnings the 

Secretary obtained from SSA and the mean or median annual 

earnings derived from an institutional survey in the form, and 

conducted in accordance with the standards described in 

paragraph (b)(2) of this section is sufficient to warrant 

revision to the final D/E rate.

(b) Survey requirements. To appeal a final D/E rate under 

this section, an institution must--
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(1) Conduct a survey of earnings information from students 

who completed the program during the applicable two-year period 

in accordance with the NCES standards referenced in paragraph 

(b)(2) of this section;

(2) Certify that the survey was conducted in accordance 

with the methodology established by NCES and available at 

http://nces.ed.gov; and

(3) Submit an examination–level attestation engagement 

report prepared by an independent public accountant or 

independent governmental auditor, as appropriate, that the 

survey was conducted in accordance with the methodology 

established by NCES. The attestation must be conducted in 

accordance with the general, fieldwork, and reporting standards 

for attestation engagements contained in the GAO’s Government 

Auditing Standards, and with procedures for attestations 

contained in guides developed by and available from the 

Department of Education's Office of Inspector General.

(c) Alternate earnings appeal procedure. 

(1) In accordance with procedures established by the 

Secretary and provided in the notice of draft D/E rates and the 

notice of determination, the institution must--

(i) Notify the Secretary of its intent to use survey 

earnings data no earlier than the date that the Secretary 
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provides the institution with its draft D/E rates but no later 

than 3 business days after the date the Secretary issues the 

notice of determination informing the institution of its final 

D/E rates under §668.407(a); and

(ii) Submit all supporting documentation outlined in 

paragraph (b) of this section related to recalculating the D/E 

rates using the survey earnings data no later than 60 days after 

the date the Secretary issues the notice of determination. 

(2) An institution that timely submits an alternate 

earnings appeal that meets the requirements of this section is 

not subject to the provisions of §668.407 while the Secretary 

considers the challenge. If the Secretary has published final 

D/E rates under §668.405(g), the program’s final rates will 

reflect that they are under appeal.

(3)(i) If the Secretary determines that the institution’s 

appeal submission is not sufficient to warrant revising the 

final D/E rates under §668.407(a), the Secretary notifies the 

institution of the reasons for the decision, and the D/E rates 

under §668.407(a) remain the final D/E rates for the program for 

the award year; or

(ii) If the Secretary determines that the institution’s 

appeal submission is sufficient to warrant revising the final 

D/E rates under §668.407(a), the Secretary recalculates the D/E 
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rates and notifies the institution that the recalculated D/E 

rates are the final D/E rates for the program for the award 

year. If the Secretary has published final D/E rates under 

§668.405(g), the program’s published rates will be updated to 

reflect the new final rates.

§668.407 Final determination and consequences of D/E rates.

(a) Notice of determination. For each year for which the 

Secretary calculates D/E rates for a GE program, the Secretary 

issues a notice of determination informing an institution of the 

following: 

(1) The final D/E rates for the program as determined 

under §668.405 and, if applicable, §668.406.

(2) The final decision of the Secretary as to whether the 

program is a passing, failing, zone, or ineligible program, and 

the consequences of that classification. 

(3) Instructions for appealing a final D/E rate that 

renders the program a failing program, pursuant to §668.406.

(4) If the program is classified as an ineligible program, 

the consequences of that ineligibility, as explained in 

paragraph (d)(1) of this section. 

(5) Whether the program, if classified as a zone or 

failing program for the subsequent award year, would be 

classified as an ineligible program.
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(6) Whether the institution is required to provide student 

warnings under paragraph (c) of this section.

(7) Whether the program is subject to the enrollment 

limits in paragraph (d)(3) of this section.

(b) Effective date of Secretary’s decision. The 

Secretary’s decision is effective five business days after the 

date the Secretary issues the notice of determination, unless an 

institution timely files a notice of intent to submit an 

alternate earnings appeal for a failing program under 

§668.406(c)(1)(i) and timely submits the appeal under 

§668.406(c)(1)(ii).

(c) Student warnings. For any award year in which the 

Secretary notifies an institution that a GE program could become 

ineligible based on its final D/E rates for the subsequent award 

year, the institution--

(1) Must provide a written warning directly to each 

enrolled student no later than 30 days after the date of the 

notice. The warning must--

(i) State that: “you may not be able to use title IV 

funds (Federal grants or student loans) to pay for the cost of 

attending the program after this year because recent graduates 

of the program are carrying levels of debt in comparison to 

their earnings that do not meet the U.S. Department of 
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Education’s standards” or any alternative warning language 

specified by the Secretary in a notice published in the Federal 

Register; and 

(ii) Describe the options available to the student to 

continue his or her education at the institution, or at another 

institution, in the event that the program loses its eligibility 

for title IV, HEA program funds. The warning must explain 

whether the institution will--

(A) Allow the student to transfer to another program at 

the institution;

(B) Continue to provide instruction in the program to 

allow the student to complete all or part of the program; 

(C) Refund the tuition, fees, and other required charges 

paid by, or on behalf of, the student for attending the program; 

(D) Facilitate a transfer that would enable the student to 

complete his or her program at another institution; and

(E) Offer any other options to the student to continue his 

or her education; and

(2) For each prospective student--

(i) At the time the student first contacts the 

institution, must provide a written warning directly to the 

student —stating: “you may not be able to use title IV funds 

(Federal grants or student loans) to pay for the cost of 
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attending the program after this year because recent graduates 

of the program are carrying levels of debt in comparison to 

their earnings that do not meet the U.S. Department of 

Education’s standards” or any alternative language specified by 

the Secretary in a notice published in the Federal Register; and 

(ii) May not enroll the student earlier than--

(A) Three business days after the warning was first 

provided to the student; or

(B) If more than 30 days pass from the date the warning is 

first provided to the student, three business days after the 

institution provides another warning as required by paragraph 

(c)(2)(i) of this section.

(d) Restrictions. (1) Ineligible program. Except as 

provided in §668.26(d), an institution may no longer disburse 

title IV, HEA program funds to students enrolled in an 

ineligible program. 

(2) Period of ineligibility. An institution may not seek 

to reestablish the eligibility of a failing or zone program that 

it voluntarily discontinued, reestablish the eligibility of an 

ineligible program, or establish the eligibility of a program 

that is substantially similar to the discontinued or ineligible 

program, until the end of the third award year following the 

award year the program was discontinued or became ineligible. A 
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program is substantially similar if it has the same first four 

digits of the CIP code as that of the discontinued or ineligible 

program.

(3) Enrollment limit. For the 12-month period beginning 

the month after the Secretary notifies an institution that a GE 

program is a failing program, the total number of students 

(receiving title IV, HEA program funds) that the institution may 

enroll in the program may not exceed the number of students 

(receiving title IV, HEA program funds) who were enrolled in the 

program during the previous 12 months.

(4) Restoring eligibility. An ineligible program, or a 

failing or zone program that an institution voluntarily 

discontinues, remains ineligible until the institution 

reestablishes the eligibility of that program. For this 

purpose, an institution voluntarily discontinues a failing or 

zone program on the date the institution provides written notice 

to the Secretary that it relinquishes the title IV, HEA program 

eligibility of that program.

§668.408 Transition period. 

(a) If a GE program would be a failing or zone program 

based on draft D/E rates calculated in accordance with §668.404 

for award years 2014-2015, 2015-2016, or 2016-2017, the 
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Secretary calculates transitional draft D/E rates for the 

program by using--

(1) The median loan debt of the students who completed the 

program during the most recently completed award year; and

(2) The earnings used to calculate the original draft D/E 

rates.

(b) For the award years listed in paragraph (a) of this 

section, the Secretary determines the final D/E rates for the 

program by using the lower of the draft D/E rates calculated 

under §668.405 or the transitional draft D/E rates calculated 

under this section. 

(c) The institution may correct the list of students or 

challenge the transitional draft D/E rates under the procedures 

in §668.405 and may appeal the final D/E rates under §668.406.

§668.409 Reporting requirements for GE programs.

(a) Every award year, in accordance with procedures 

established by the Secretary, an institution must report--

(1) For each student enrolled in a GE program during an 

award year--

(i) Information needed to identify the student and the 

institution the student attended;

(ii) The name, CIP code, credential level, and normal time 

of the program; 
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(iii) Whether the program is a medical or dental program 

whose students are required to complete an internship or 

residency; 

(iv) The date the student began initial attendance in the 

program; and

(v) The student’s attendance dates and enrollment status 

in the program during the award year; 

(2) If the student completed or withdrew from the GE 

program during the award year--

(i) The date the student completed or withdrew from the 

program;

(ii) The total amount the student received from private 

education loans for attendance in the program; and

(iii) The total amount of debt arising from institutional 

financing plans the student owes the institution upon completing 

or withdrawing from the program; and 

(3) As described in a notice published by the Secretary in 

the Federal Register, any other information requested by the 

Secretary to carry out the provisions of this subpart.

(b)(1) An institution must report the information required 

under paragraph (a) of this section no later than--

(i) July 31, 2015, for information from the 2011-2012 

through 2013-2014 award years; and
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(ii) For the 2014-2015 award year and subsequent award 

years, October 1 following the end of the award year, unless the 

Secretary establishes a different date in a notice published in 

the Federal Register.

(2) For any award year, if an institution is unable to 

provide all or some of the information in paragraph (a) of this 

section, the institution must provide the Secretary with an 

explanation of why the missing information is not available.

§668.410 Disclosure requirements for GE programs. 

 (a) Disclosure template. An institution must use the 

disclosure template provided by the Secretary to disclose 

information about each of its GE programs to enrolled and 

prospective students. The Secretary identifies the information 

that must be included in the template in a notice published in 

the Federal Register. That information may include, but is not 

limited to:

(1) The primary occupations (by name and SOC code) that 

the GE program prepares students to enter, along with links to 

occupational profiles on O*NET (www.onetonline.org) or its 

successor site. 

(2) The GE program’s completion rates as calculated by the 

Secretary under paragraph (f) of this section.
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(3) As calculated by the Secretary under paragraph (g) of 

this section, the loan repayment rate for any one or all of the 

following groups of students who entered repayment during the 

two-year period:

(i) All students who attended the program.

(ii) Students who completed the program.

(iii) Students who withdrew from the program.

(4) The total cost of tuition, fees, and books and 

supplies that a student would incur for completing the program 

within normal time.

(5) The placement rate for the program, if the institution 

is required by its accrediting agency or State to calculate a 

placement rate.

(6) As calculated by the institution, the median loan 

debt, including all of the loans described in §668.404(d)(1),

incurred by any one of the following groups of students:

(i) Students who completed the program during the most 

recently completed award year. 

(ii) Students who withdrew from the program during the 

most recently completed award year. 

(iii) All of the students described in paragraph (a)(6)(i) 

and (ii) of this section.
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(7) The median earnings, of any one of the following 

groups of students:

(i) Students who completed the program during the two-year 

period used by the Secretary to calculate the most recent D/E 

rates for the program under this subpart.

(ii) Students who withdrew from the program during the 

two-year period used by the Secretary to calculate the most 

recent D/E rates for the program under this subpart. 

(iii) All of the students described in paragraph (a)(7)(i) 

and (ii) of this section. 

(8) A link to the U.S. Department of Education’s College 

Navigator Web site at http://nces.ed.gov/collegenavigator/, or 

its successor site; and

(9) If applicable, whether the program, with respect to 

the occupations for which the program prepares the student as 

disclosed by the institution under paragraph (a)(1) of this 

section, satisfies the educational prerequisites for 

professional licensure in the State in which the program is 

offered.

(10) As specified in a notice published by the Secretary 

in the Federal Register, any other information about the program 

that the Secretary requires the institution to disclose. 
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(b) Disclosure updates. (1) In accordance with 

procedures and timelines established by the Secretary, the 

institution must update at least annually the information 

contained in the disclosure template for each of its GE 

programs.

(2) The institution must update the disclosure template 

within 30 days of receiving notice from the Secretary that the 

institution must provide student warnings for the program under 

§668.407(c) in order to notify enrolled and prospective students 

that the program has failed to meet U.S. Department of Education 

standards and that students enrolled or enrolling in the program 

may not qualify to receive title IV, HEA program funds for the 

duration of the entire program.

(c) Web link to disclosure information. On any Web page 

containing general, academic, or admissions information about a 

GE program, the institution must provide a prominent and direct 

link (one click) to the disclosure template for that program.

(d) Promotional materials. (1) All promotional materials 

about the GE program that an institution makes available to 

prospective students must include--

(i) The information on the disclosure template in a 

prominent manner; or
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(ii) Where space or airtime constraints would preclude a 

full disclosure of the required information, the Web address 

(URL) of, or the direct link to, the disclosure template, 

provided that, the institution identifies the URL or link as 

“Important Federal Student Aid Information You Need to Know.” 

(2) Promotional materials include, but are not limited to, 

an institution’s catalogs, invitations, flyers, billboards, and 

advertising on radio, television, the Internet, or social media 

account.

(3) The institution must ensure that all promotional 

materials, including printed materials, about a GE program are 

accurate and current at the time they are published, approved by 

a State agency, or broadcast.

(e) Direct distribution to students. An institution must 

provide to each prospective student as a separate document, at 

the time the institution first provides the student information 

about the program and at the time the student enrolls in the 

program, a copy of the disclosure template.

(f) Completion rates. The Secretary calculates the 

completion rates of a GE program as follows:

Number of students in the enrollment cohort who completed

the program within 100% of normal time

Number of students in the enrollment cohort
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and,

Number of students in the enrollment cohort who completed

the program within 150% of normal time

Number of students in the enrollment cohort

The enrollment cohort is the number of students who began 

attending the program at any time during a particular award 

year.

(g) Loan repayment rate. For the most recently completed 

award year, the Secretary calculates a loan repayment rate for 

borrowers who attended a GE program as follows:

Number paid in full plus number in active repayment

Number entering repayment 

(1) Number entering repayment. The total number of 

borrowers who entered repayment during the two-year period on 

FFEL Loans or Direct Loans received for attendance in the GE 

program.

(2) Number paid in full. Of the number of borrowers 

entering repayment, the number who have fully repaid loans 

received for attendance in the GE program. 

(3) Number in active repayment. Of the number of 

borrowers entering repayment, the number who, during the most 

recently completed award year--
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(i) Made loan payments sufficient to reduce by at least 

one dollar the outstanding principal balance of each loan, 

including consolidation loans that include a loan received for 

attendance in the GE program, by comparing the outstanding 

principal balance at the beginning and end of the award year. 

The outstanding principal balance of a loan includes any unpaid 

accrued interest that has not been capitalized; or

(ii) Made all loan payments required under an incomedriven repayment plan.

(4) Loan defaults. A borrower who defaulted on a loan is 

not included in the numerator of the formula.

(5) Rates for borrowers who completed or withdrew. The 

Secretary may modify the formula in this paragraph to calculate 

repayment rates only for those borrowers who completed the 

program or only those borrowers who withdrew from the program.

(6) Exclusions. For the award year the Secretary 

calculates the loan repayment rate for a GE program, the 

Secretary excludes a borrower from the repayment rate 

calculation if the Secretary determines that--

(i) One or more of the borrower’s loans were in a 

military-related deferment status for at least 60 days during 

the most recently completed award year; 
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(ii) One or more of the borrower’s FFEL loans or Direct 

Loans are either under consideration by the Secretary, or have 

been approved for a discharge on the basis of the borrower’s 

total and permanent disability, under 34 CFR 682.402 and 

685.212.

(iii) The borrower was enrolled on at least a half-time 

basis for at least 60 days in an eligible institution during the 

most recently completed award year; or

(iv) The borrower died.