Advisor Information presented at October 5, 2021 Negotiated rulemaking

1. Highlights from recent GAO report (GAO-21-105373)

2. Information on the share of public and for-profit institutions that confer degrees in certain fields, and the 

distribution of degrees and certificates conferred in different fields at public and for-profit institutions 

(from the US Digest of Education Statistics published by the US Department of Education)

3. Research evidence (limited)

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GAO Findings on College Closures, 2010-2020

● About 246,000 borrowers were enrolled at 1,106 colleges that closed

• Borrowers enrolled in closed colleges: 

• Collectively had a $4B in federal student loans

• Median student loan debt: $9,500; Mean student loan debt: $16,400

• 86% were enrolled at FP college; 14% nonprofit, 1% public

● Enrollment outcomes (overall among borrowers)

• 13% completed program before college closing (ineligible for closed school discharge)

• 44% transferred to another program (possibly eligible for closed school discharge) 

• ~30% of borrowers transferred from a for-profit college to a public college

• ~5% transferred to a program that subsequently closed

• ~1/2 of borrowers who transferred did not graduate within 6 years of transferring (pre-2015 cohorts)

• 43% did not complete their program before their college closed or transfer to another college (eligible for closed school 

discharge)

● Circumstances surrounding closure appear to matter (e.g., abrupt versus orderly)

● Negative consequences of closure

• Students often lose credits (from prior GAO report)

• Students transferring among FP colleges lost 83% of credits on average

• Borrowers who reenrolled at public colleges lost 94% of credits

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Source: GAO-21-105373; GAO-17-574
GAO Findings on College Closures, 2010-2020 (continued)

● >80,000 students had loans forgiven through a closed school discharge

• Does not include Aug 2021 announcement regarding additional ITT Technical Institute student discharges

• Discharged ~$1.1B of loans at 682 college closures

• Median loan debt ~$9,900

• 96% went to students at for-profit colleges (2/3 concentrated at 21 colleges)

● Automatic discharges accounted for 42% of discharges since eligibility in 2013

● Of the group that transferred, but did not graduate within 6 years of transferring (pre-2015 

cohorts), 700 applied for and received discharges

● Of those who received automatic discharges

• 52% defaulted on their loans

• More than half during the first 1.5 years after college closing

• An additional 21% were past due at by ≥90 days at some point during repayment

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Source: GAO-21-105373
Share of Public & FP Postsecondary Institutions Conferring Associate Degrees, 2017-2018

Field of Study

Share of Total 

Assoc Degrees Public For-Profit

Liberal arts and sciences, general studies, and humanities 39% 88% 1%

Health professions and related programs 18% 85% 70%

Business 12% 87% 44%

Homeland security, law enforcement, and firefighting 3% 70% 18%

Computer and information sciences 3% 74% 29%

Multi/interdisciplinary studies 3% 31% 1%

Engineering technologies and engineering-related fields 3% 67% 8%

Social sciences and history 2% 22% 0%

Mechanic and repair technologies/technicians 2% 51% 8%

Visual and performing arts 2% 49% 11%

Education 2% 50% 3%

Psychology 1% 19% 0%

Physical sciences and science technologies 1% 29% 0%

Family and consumer sciences/human sciences 1% 38% 1%

Agriculture and natural resources 1% 39% 0%

Communication, journalism, and related programs 1% 23% 1%

Public administration and social services 1% 25% 2%

Engineering 1% 31% 1%

Biological and biomedical sciences 1% 23% 0%

Legal professions and studies 1% 31% 16%

Precision production 1% 31% 2%

Construction trades 1% 26% 3%

Total # of institutions 2,457 1,242 580

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Notes: Descending rank by share of total associate degrees. Does not include every field of study. Source: Digest of Education Statistics, 2019, 318.60. Data are for degree-granting postsecondary institutions, 

which are institutions that grant associate's or higher degrees and participate in Title IV federal financial aid programs. 
Share of Public & FP Postsecondary Institutions Conferring Associate Degrees, 2017-2018_

Field of Study

Share of Total 

Assoc Degrees Public For-Profit

Liberal arts and sciences, general studies, and humanities 39% 88% 1%

Health professions and related programs 18% 85% 70%

Business 12% 87% 44%

Homeland security, law enforcement, and firefighting 3% 70% 18%

Computer and information sciences 3% 74% 29%

Multi/interdisciplinary studies 3% 31% 1%

Engineering technologies and engineering-related fields 3% 67% 8%

Social sciences and history 2% 22% 0%

Mechanic and repair technologies/technicians 2% 51% 8%

Visual and performing arts 2% 49% 11%

Education 2% 50% 3%

Psychology 1% 19% 0%

Physical sciences and science technologies 1% 29% 0%

Family and consumer sciences/human sciences 1% 38% 1%

Agriculture and natural resources 1% 39% 0%

Communication, journalism, and related programs 1% 23% 1%

Public administration and social services 1% 25% 2%

Engineering 1% 31% 1%

Biological and biomedical sciences 1% 23% 0%

Legal professions and studies 1% 31% 16%

Precision production 1% 31% 2%

Construction trades 1% 26% 3%

Total # of institutions 2,457 1,242 580

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Notes: Descending rank by share of total associate degrees. Does not include every field of study. Source: Digest of Education Statistics, 2019, 318.60. Data are for degree-granting postsecondary institutions, 

which are institutions that grant associate's or higher degrees and participate in Title IV federal financial aid programs. 
Degrees & Certificates Conferred, 2017-2018

Field of study

Share of Total 

Assoc Degrees

Assoc Degrees

Public 

Assoc Degrees

FP

1- to <4-year 

certificates

Public 

1- to <4-year 

certificates

FP

Liberal arts and sciences, general studies, and humanities 39% 44% 2% 25% 0%

Health professions and related programs 18% 14% 48% 24% 43%

Business 12% 11% 20% 12% 35%

Homeland security, law enforcement, and firefighting 3% 3% 5% 3% 0%

Computer and information sciences 3% 3% 5% 3% 1%

Multi/interdisciplinary studies 3% 3% 1% 1% 0%

Engineering technologies and engineering-related fields 3% 3% 2% 4% 2%

Social sciences and history 2% 3% 0% 0% 0%

Mechanic and repair technologies/technicians 2% 2% 6% 9% 13%

Visual and performing arts 2% 2% 3% 3% 1%

Education 2% 2% 1% 1% 0%

Psychology 1% 1% 0% 0% 0%

Physical sciences and science technologies 1% 1% 0% 0% 0%

Family and consumer sciences/human sciences 1% 1% 0% 2% 0%

Agriculture and natural resources 1% 1% 0% 1% 0%

Communication, journalism, and related programs 1% 1% 0% 0% 0%

Public administration and social services 1% 1% 1% 0% 0%

Engineering 1% 1% 0% 0% 0%

Biological and biomedical sciences 1% 1% 0% 0% 0%

Legal professions and studies 1% 1% 2% 1% 0%

Precision production 1% 1% 0% 5% 2%

Construction trades 1% 1% 1% 4% 2%

Total # of credentials conferred 1,011,487 885,870 69,430 264,974 154,929

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Notes: Descending rank by share of total associate degrees. Does not include every field of study. Source: Digest of Education Statistics, 2019, Tables 318.50, 320.10. Data are for degree-granting 

postsecondary institutions, which are institutions that grant associate's or higher degrees and participate in Title IV federal financial aid programs. 
Degrees & Certificates Conferred, 2017-2018_

Field of study

Share of Total 

Assoc Degrees

Assoc Degrees

Public 

Assoc Degrees

FP

1- to <4-year 

certificates

Public 

1- to <4-year 

certificates

FP

Liberal arts and sciences, general studies, and humanities 39% 44% 2% 25% 0%

Health professions and related programs 18% 14% 48% 24% 43%

Business 12% 11% 20% 12% 35%

Homeland security, law enforcement, and firefighting 3% 3% 5% 3% 0%

Computer and information sciences 3% 3% 5% 3% 1%

Multi/interdisciplinary studies 3% 3% 1% 1% 0%

Engineering technologies and engineering-related fields 3% 3% 2% 4% 2%

Social sciences and history 2% 3% 0% 0% 0%

Mechanic and repair technologies/technicians 2% 2% 6% 9% 13%

Visual and performing arts 2% 2% 3% 3% 1%

Education 2% 2% 1% 1% 0%

Psychology 1% 1% 0% 0% 0%

Physical sciences and science technologies 1% 1% 0% 0% 0%

Family and consumer sciences/human sciences 1% 1% 0% 2% 0%

Agriculture and natural resources 1% 1% 0% 1% 0%

Communication, journalism, and related programs 1% 1% 0% 0% 0%

Public administration and social services 1% 1% 1% 0% 0%

Engineering 1% 1% 0% 0% 0%

Biological and biomedical sciences 1% 1% 0% 0% 0%

Legal professions and studies 1% 1% 2% 1% 0%

Precision production 1% 1% 0% 5% 2%

Construction trades 1% 1% 1% 4% 2%

Total # of credentials conferred 1,011,487 885,870 69,430 264,974 154,929

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Notes: Descending rank by share of total associate degrees. Does not include every field of study. Source: Digest of Education Statistics, 2019, Tables 318.50, 320.10. Data are for degree-granting 

postsecondary institutions, which are institutions that grant associate's or higher degrees and participate in Title IV federal financial aid programs. 
Research Evidence

● Pell Grant students who attended schools that lost eligibility to disburse federal financial 

aid appear to have local options and many enroll in them

• Enrollment losses at sanctioned FPs are partially offset (60–70%) by increased enrollment at local CCs

• Overall, market enrollment declines by ~2 percent 

• Limitations

• Schools threatened to lose eligibility to disburse federal aid, not closure

• Does not track individual students – only Pell Grant students in aggregate in a county

• Not able to observe costs of transfer (credit transferability; financial costs)

• Pell Grant students only (not necessarily borrowers)

• Other outcomes not observed (suggestive evidence regarding loan default)

• Source: Cellini, Darolia, & Turner, Where Do Students Go When For-Profit Colleges Lose Federal Aid?, American 

Economic Journal: Economic Policy, 2020

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