Metrics Annual debt-to-earnings Discretionary debt-to-earnings Program coho

Students Completers Completers & non-compCategories & thresholds Pass: aDTE≤8% OR dDTE≤20%

Zone:• Not passing AND• 8%<aDTE≤12% OR 20%<dDTE≤30%Fail: aDTE>12% AND dDTE>30%

Pass: pCDR<30%Fail: pCDR≥30%

Ineligibility rules(metrics operate independently of each other)

A program becomes T4 ineligible for 3yrs if:• It fails in any 2 out of 3yrs, OR• Does not pass in any 1 out of 4yrs (time for 

zone programs to improve before ineligibility)

A program becomes T4 • The 3 year default ra

cohorts of students to 30%

Restrictions • Debt warnings to students if program could 

become ineligible at the end of the year (applies to zone & failing programs)

• T4 enrollment limited to previous year’s level 

for failing programs (does not apply to zone programs)

• Debt warnings to stud

become ineligible at t

• T4 enrollment limited 

if program could becoof the year

Overview of Draft Gainful Employment Regulation 

Negotiated Rulemaking Session 3

Draft for discussion purposes 12.11.13
Student 

protections

• If program could become ineligible at the end of the year, institution must post letter of c

aside portion of T4 funds to provide borrower relief to enrolled students if program eventu

• During transition period (first four years of rule), if program could become ineligible at the 

institution may provide grants to students to reduce debt instead of letter of credit/exces

Programs would not lose eligibility during the transition period if institution chooses this o

Existingprogram certification

For existing programs, institution must sign certification that program is included in instituti

required, has received programmatic accreditation and completion of program meets requiremployed in the occupation for which the program provides training in State within region th

New programapproval

New programs apply only if the program was deemed ineligible, was a failing or zone prograclosed, is in the same “family of CIP” codes as a current or recent failing program. Applicati

• Occupations that program trains for, CIP code, credential level, length of program, cost of t

supplies, cost of attendance, start date of program

• Projected entry level earnings and earnings three years after entering profession as obtain

employers

• Letters from at least three likely employers signed by an executive officer of the business 

curriculum will prepare student for employment in the relevant occupation 

• Documentation that institutional accreditation includes program or, if required, that progra

• If required, affirmation that program meets licensure, certification, experiential placement

requirements in States within region that program is offered

Disclosures

• Occupation• Cost of tuition, fees, books, supplies• Program length• Total enrollment• Completion rate (for full and part-time students;) • Withdrawal rate (within normal time of program)

• Placement rate (if required • Repayment rate (borrower-• Median earnings• Median loan debt• Whether licensure requirem

applicable)

• Whether program is accred

Draft for discussion purposes 12.11.13

Negotiated Rulemaking Session 3, cont.