UNITED STATES DEPARTMENT OF EDUCATION

OFFICE OF POSTSECONDARY EDUCATION

Issue Paper 3: Gainful Employment

Session 3: March 14-18, 2022

Issue: Gainful Employment

Statutory cites: §101(b)(1), 102(b)(1)(A)(i), and 102(c)(1)(A) of the Higher Education Act of 1965, 

as amended

Regulatory cites: 34 CFR 600.10, 600.21, Subpart Q, 668.43, 668.13

Proposed Regulations Redline

§ 600.10 Date, extent, duration, and consequence of eligibility.

* * *

(c) Educational programs. 

(1) An eligible institution that seeks to establish the eligibility of an educational program must -

(i) Pursuant to a requirement regarding additional programs included in the institution's 

program participation agreement under 34 CFR 668.14, obtain the Secretary's approval; 

(ii) For a direct assessment program under 34 CFR 668.10, and for a comprehensive transition 

and postsecondary program under 34 CFR 668.232, obtain the Secretary's approval; and

(iii) For a first direct assessment program under 34 CFR 668.10, the first direct assessment 

program offered at each credential level, and for a comprehensive transition and postsecondary 

program under 34 CFR 668.23f2, obtain the Secretary's approval; and

(iv) For the first eligible prison education program under subpart P of 34 CFR part 668 offered at 

the first two additional locations as defined under 34 CFR § 600.2 at a Federal, State, or local 

penitentiary, prison, jail, reformatory, work farm, juvenile justice facility, or other similar 

correctional institution; and.

(iv) For a gainful employment program under 34 CFR part 668, subpart Q of this chapter, update 

its application under § 600.21, and meet any time restrictions that prohibit the institution from 

establishing or reestablishing the eligibility of the program as may be required under 34 CFR 

668.4087.

(2) Except as provided under § 600.20(c), an eligible institution does not have to obtain the Secretary's 

approval to establish the eligibility of any program that is not described in paragraph (c)(1) of this 

section. 

§ 600.21 Updating application information.
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(a) Reporting requirements. Except as provided in paragraph (b) of this section, an eligible institution 

must report to the Secretary in a manner prescribed by the Secretary no later than 10 days after the 

change occurs, of any change in the following:

* * *

(11) For any program that is required to provide training that prepares a student for gainful employment 

in a recognized occupation -

(i) Establishing the eligibility or reestablishing the eligibility of the program; 

(ii) Discontinuing the program's eligibility; 

(iii) Ceasing to provide the program for at least 12 consecutive months; 

(iv) Losing program eligibility under § 600.40; or 

(v) Changing the program's name, CIP code, or credential level; or

(vi) Updating the certification pursuant to 34 CFR 668.410.

* * *

Subpart Q—Gainful Employment (GE) Programs

§ 668.401 Scope and purpose. 

This subpart applies to an educational program offered by an eligible institution that prepares students 

for gainful employment in a recognized occupation, and establishes the rules and procedures under 

which--

(a) The Secretary determines that the program is eligible for title IV, HEA program funds; and

(b) An institution reports information about the program to the Secretary.

§ 668.402 Definitions. 

The following definitions apply to this subpart.

Annual earnings rate. The percentage of aratio of a GE program’s typical annual loan payment amount 

compared to the typical annual earnings of the students who completed the program, expressed as a 

percentage, as calculated under §668.404. 

Classification of instructional program (CIP) code. A taxonomy of instructional program classifications 

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

Statistics (NCES). Specific programs offered by institutions are classified using a six-digit CIP code. 

However, for purposes of this subpart, the Secretary uses the first four digits of the CIP code to identify 

gainful employment programs that have comparable content and objectives.

Cohort period. The set of award years used to identify a cohort of students who completed a program 

and whose debt and earnings outcomes are used to calculate debt-to earnings rates and the earnings 

threshold measure. The Secretary uses a two-year cohort period to calculates the debt-to-earnings rates

and earnings threshold measure for a program when the number of students (after exclusions identified 
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in §668.404(e) and §668.405(c)) in the two-year cohort period is 30 or more. The Secretary uses a fouryear cohort period to calculate the debt-to-earnings rates and earnings thresholds measure when the 

number of students completing the program in the two-year cohort period is lessfewer than 30 and 

when the number of students completing the program in the four-year cohort period is 30 or more. The 

cohort period covers consecutive award years that are--

(1) For the two-year cohort period--

(i) The third and fourth award years prior to the award year for which the most recent data are 

available from the Federal agency with earnings data at the time the D/E rates and earnings 

threshold measure are calculated, pursuant to §§668.404 and 668.405. For example, given 

current data production schedules,if D/E rates and the earnings threshold measure are

calculated to assess programmatic eligibility in award year 2022-2023 would be calculated in 

2021; for award year 2021-2022, the two-year cohort period would be is award years 20147-

20158 and 20158-20169; and earnings data would be measured inused will be for calendar 

years 201820 and 201921; or

(ii) 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 most recent 

data are available from the Federal agency with earnings data at the time the D/E rates and 

earnings threshold measure are calculated. For example, given current data production 

schedules, if D/E rates and the earnings threshold measure are calculated to assess 

programmatic eligibility in award year 2022-2023 would be calculated in 2021; and for award 

year 2021-2022,the two-year cohort period is award years 20114-20125 and 20125-20136. For 

this purpose, a required medical or dental internship or residency is a supervised training 

program that--

(A) Requires the student to hold a degree as a doctor of medicine or osteopathy, or as a 

doctor of dental science;

(B) 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 

(C) Must be completed before the student may be licensed by a State and board 

certified for professional practice or service.

(2) For the four-year cohort period—

(i) The third, fourth, fifth, and sixth award years prior to the award year for which the most 

recent data are available from the Federal agency with earnings data at the time the D/E rates 

and earnings threshold measure are calculated, pursuant to §§668.404 and 668.405. For 

example, given current data production schedules, if D/E rates and the earnings threshold 

measure are calculated to assess programmatic eligibility in award year 2022-2023 would be 

calculated in 2021, and for award year 2021-2022, the fourtwo-year cohort period is award 

years 20125-20136, 20136-20147, 20147-20158, and 20158-20169; and earnings data would be 

measured in calendar years 2018 and 2019used will be for 2020 and 2021; or

(ii) For a program whose students are required to complete a medical or dental internship or 

residency, the sixth, seventh, eighth, and ninth award years prior to the award year for which 

the most recent earnings data are available from the Federal agency with earnings data at the 
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time the D/E rates and earnings threshold measure are calculated. For example, given current 

data production schedules, if D/E rates and the earnings threshold measure are calculated to 

assess programmatic eligibility in award year 2022-2023 would be calculated in 2021, and for 

award year 2021-2022, the four-year cohort period is award years 200912-20103, 20103-20114, 

20114-20125, and 20125-20136. For this purpose, a required medical or dental internship or 

residency is a supervised training program that meets the requirements in paragraph (1)(ii) of 

this definition.--

(A) Requires the student to hold a degree as a doctor of medicine or osteopathy, or as a 

doctor of dental science; 

(B) 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 

(C) Must be completed before the student may be licensed by a State and board 

certified for professional practice or service.

Credential level. The level of the academic credential awarded by an institution to students who 

complete the program. For the purposes of this subpart, the undergraduate credential levels are: 

undergraduate certificate or diploma, associate degree, bachelor’s degree, and post-baccalaureate 

certificate; and the graduate credential levels are graduate certificate (including a postgraduate 

certificate), master’s degree, doctoral degree, and first-professional degree (e.g., MD, DDS, JD).

Debt-to-earnings rates (D/E rates). The discretionary earnings rate and annual earnings rate as 

calculated under §668.404.

Discretionary earnings rate. The percentage of a GE program’s annual loan payment compared to the 

discretionary earnings of the students who completed the program, as calculated under §668.404.

Earnings threshold. Based on data from the Census Bureau, the median earnings for a working adult 

aged 25-34 with only a high school diploma (or GED)—

(1) In the State in which the institution is located; or

(2) Nationally, if fewer than 50 percent of the students at the institution are located in the State 

where the institution is located.

Federal agency with earnings data. A Federal agency with which the Department enters into an 

agreement to access earnings data for the D/E rates and earnings threshold measure. The agency must 

have data sufficient to match with at least 90 percent of title IV, HEA recipients who completed any title 

IV-eligible program during the cohort periodtitle IV graduates, and may include the Treasury 

Department (including the Internal Revenue Service), the Social Security Administration (SSA), the 

Department of Health and Human Services (HHS), and/or the Census Bureau. 

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 four-digit CIP code as assigned by the institution or 

determined by the Secretary, and the program’s credential level. 
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Length of the program. The amount of time in weeks, months, or years that is specified in the 

institution’s catalog, marketing materials, or other official publications for a student to complete the 

requirements needed to obtain the degree or credential offered by the program.

Poverty Guideline. The Poverty Guideline for a single person in the continental United States as 

published by the U.S. Department of Health and Human Services and available at 

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

Prospective student. An individual who has contacted an eligible institution for the purpose of 

requesting information about enrolling in a GE program or who has been contacted directly by the 

institution or by a third party on behalf of the institution about enrolling in a GE program.

Small program. A GE program for which the number of students completing the program in the two- and 

four-year cohort periods is fewer than 30.

Small program rates. The discretionary earnings rate and annual earnings rate calculated in accordance 

with § 668.404(g), or the earnings threshold measure calculated in accordance with § 668.405(e), as 

applicable, on an aggregate basis for all small programs at an institution within the same credential level

in accordance with §668.404(g).

Student. An individual who received title IV, HEA program funds for enrolling in the GE program.

Title IV loan. A loan authorized under the William D. Ford Direct Loan Program (Direct Loan).

§ 668.403 Gainful employment framework.

(a) General. A program provides training that prepares students for gainful employment in a recognized 

occupation if the program--

(1) Satisfies the applicable certification requirements in §668.4104; and

(2) Is not an ineligible program under the D/E rates;. and

(3) Is not an ineligible program under the earnings threshold measure.

(b) Debt-to-earnings rates (D/E rates). For each award year the Secretary calculates two D/E rates for a 

GE program, the discretionary earnings rate and the annual earnings rate, using the procedures in 

§§668.404 through 668.4076. 

(c) Outcomes of the D/E rates. 

(1) A GE program passes the D/E rates if--

(i) Its discretionary earnings rate is less than or equal to 20 percent; or

(ii) Its annual earnings rate is less than or equal to 8 percent; or

(iii) The denominator (median annual or discretionary earnings) of either rate is 0 and the 

numerator (median debt payments) is zero.

(2) A GE program fails the D/E rates if--
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(i) Its discretionary earnings rate is greater than 20 percent or the income for the denominator 

of the rate (median discretionary earnings) is negative or zero and the numerator (median debt 

payments) is positive; and

(ii) Its annual earnings rate is greater than 8 percent or the denominator of the rate (median

annual earnings) is zero and the numerator (median debt payments) is positive.

(3) A GE program becomes ineligible, subject to paragraph (c)(4) of this section, if it fails the D/E rates in 

two out of any three consecutive award years for which the program’s D/E rates are calculated, except 

that failing the small program rates does not make those small programs ineligible.

(4) If the Secretary does not calculate or issue D/E rates for a program for an award year, or calculates 

only a small program rates with respect to that program, the program receives no result under the D/E 

rates measure for that award year and remains in the same status under the D/E rates as the previous 

award year.

(d) Earnings threshold measure. For each award year, the Secretary assesses the GE program under the 

earnings threshold measure, using the procedures in § 668.405. 

(e) Outcomes of the earnings threshold measure.

(1) A GE program passes the earnings threshold measure if the median annual earnings of the students 

who completed the program exceed the earnings threshold.

(2) A GE program fails the earnings threshold measure if the median annual earnings of the students 

who completed the program are equal to or less than the earnings threshold.

(3) A GE program becomes ineligible, subject to paragraph (d)(4) of this section, if it fails the earnings 

threshold measure in two out of any three consecutive award years for which the program’s earnings

threshold measure is calculated, except that failing the small program rates does not make those small 

programs ineligible.

(4) If the Secretary does not calculate or issue earnings threshold measures for a program for an award 

year, or calculates only a small program measure with respect to that program, the program receives no 

result under the earnings threshold measure for that award year and remains in the same status under 

the earnings threshold measure as the previous award year.

§ 668.404 Calculating D/E rates.

(a) General. Except as provided under paragraphs (f) and (g) of this section, for each award year, the 

Secretary calculates D/E rates for a GE program as follows:

(1) Discretionary earnings rate = annual loan payment / (the median annual earnings – (1.5 x Poverty 

Guideline)). For the purposes of this paragraph, the Secretary applies the Poverty Guideline for the 

calendar year immediately following the calendar year for which annual earnings are obtained under 

paragraph (c) of this section.

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

(b) Annual loan payment. The Secretary calculates the annual loan payment for a GE program by--
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(1)(i) Determining the median loan debt of the students who completed the program during the cohort 

period, based on the lesser of the loan debt incurred by each student as determined under paragraph 

(d)(1) of this section and the total amount for tuition and fees and books, equipment, and supplies for 

each student as determined under paragraph (d)(2) of this section; 

(ii) Removing, if applicable, the appropriate number of highest loan debts as described in 

§668.4045(bd)(12)(ii); and

(iii) Calculating the median of the remaining amounts.

(2) Amortizing the median loan debt--

(i)

(A) Over a 10-year repayment period for a program that leads to an undergraduate 

certificate, a post-baccalaureate certificate, an associate degree, or a graduate 

certificate;

(B) Over a 15-year repayment period for a program that leads to a bachelor's degree or 

a master's degree; or

(C) Over a 20-year repayment period for any other program; and

(ii) Using an annual interest rate that is the average of the annual statutory interest rates on 

Federal Direct Unsubsidized Loans that were in effect during—

(A) The three consecutive award years, ending in the final year of the cohort period, for 

undergraduate certificate programs, post-baccalaureate certificate programs, and 

associate degree programs. For these programs, the Secretary uses the Federal Direct 

Unsubsidized Loan interest rate applicable to undergraduate students;

(B) The three consecutive award years, ending in the final year of the cohort period, for 

graduate certificate programs and master's degree programs. For these programs, the 

Secretary uses the Federal Direct Unsubsidized Loan interest rate applicable to graduate 

students;

(C) The six consecutive award years, ending in the final year of the cohort period, for 

bachelor's degree programs. For these programs, the Secretary uses the Federal Direct 

Unsubsidized Loan interest rate applicable to undergraduate students; and

(D) The six consecutive award years, ending in the final year of the cohort period, for 

doctoral programs and first professional degree programs. For these programs, the 

Secretary uses the Federal Direct Unsubsidized Loan interest rate applicable to graduate 

students.

Note to paragraph (b)(2)(ii): For example, for an undergraduate certificate program, if the twoyear cohort period is award years 20174-20185 and 20185-20196, the interest rate would be the 

average of the interest rates for the years from 20162-20173 through 20185-20196.

(c) Annual earnings. 
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(1) The Secretary obtains from a Federal agency with earnings data, under §668.4065, the most 

currently available median annual earnings of the students who completed the GE program during the 

cohort period and who are not excluded under paragraph (e) of this section; and

(2) The Secretary uses the median annual earnings to calculate the D/E rates. 

(d) Loan debt and assessed charges. 

(1) In determining the loan debt for a student, the Secretary includes--

(i) The amount of title IV loans that the student borrowed (total amount disbursed less any cancellations 

or adjustments) for enrollment in the GE program, including Direct PLUS Loans made to parents of 

dependent students but excluding Direct Unsubsidized Loans that were converted from TEACH Grants;

(ii) Any private education loans as defined in 34 CFR 601.2, including private education loans made by 

the institution, that the student borrowed for enrollment in the program and that are required to be 

reported by the institution under §668.4098; and

(iii) The amount outstanding, as of the date the student completes the program, on any other credit 

(including any unpaid charges) extended by or on behalf of the institution for enrollment in any GE 

program attended at the institution that the student is obligated to repay after completing the GE 

program, including extensions of credit described in clauses (1) and (2) of the definition of, and excluded 

from, the term “private education loan” in 34 CFR 601.2;

(2) The Secretary attributes all the loan debt incurred by the student for enrollment in any--

(i) Undergraduate GE program at the institution to the highest credentialed undergraduate GE 

program subsequently completed by the student at the institution as of the end of the most 

recently completed award year prior to the calculation of the D/E rates under this section; and

(ii) Graduate GE program at the institution to the highest credentialed graduate GE program 

completed by the student at the institution as of the end of the most recently completed award 

year prior to the calculation of the D/E rates under this section; and

(3) The Secretary excludes any loan debt incurred by the student for enrollment in programs at other 

institutions. However, the Secretary may include loan debt incurred by the student for enrollment in GE 

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. The Secretary excludes a student from both the numerator and the denominator of the 

D/E rates calculation if the Secretary determines that--

(1) One or more of the student’s title IV loans are 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 

674.61, 682.402, or 685.212;

(2) The student was enrolled full-time in any other eligible program at the institution or at another 

institution during the calendar year for which the Secretary obtains earnings information under 

paragraph (c) of this section; 
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(3) For undergraduate GE programs, the student completed a higher credentialed undergraduate GE 

program at the institution subsequent to completing the program as of the end of the most recently 

completed award year prior to the calculation of the D/E rates under this section;

(4) For graduate GE programs, the student completed a higher credentialed graduate GE program at the 

institution subsequent to completing the program as of the end of the most recently completed award 

year prior to the calculation of the D/E rates under this section; or

(5) The student is enrolled in an approved prison education program; or

(65) The student died. 

(f) D/E rates not issued. The Secretary does not issue D/E rates for a GE program under §668.4065 if--

(1) After applying the exclusions in paragraph (e) of this section, fewer than 30 students completed the 

program during the two-year or four-year cohort period, except as provided in paragraph (g); or

(2) The Federal agency with earnings data does not provide the median earnings for the program as 

provided under paragraph (c) of this section.

(g) Small program rates. For each award year, the Secretary—

(1) Determines the total number of students who completed small programs within a credential level at 

the institution during the four-year cohort period after making the exclusions in paragraph (e) of this 

section; and

(2) If that total is 30 or more students, calculates the small program rates for those small programs

under the provisions of this section.

§ 668.405 Calculating earnings threshold measure.

(a) General. Except as provided under paragraph (d) of this section, for each award year, the Secretary 

assesses the earnings threshold measure for a GE program by determining whether the median annual 

earnings of the title IV, HEA recipients who completed the program exceed the earnings threshold.

(b) Median annual earnings; earnings threshold. 

(i) The Secretary obtains from a Federal agency with earnings data, under § 668.406, the most currently 

available median annual earnings of the students who completed the GE program during the cohort 

period and who are not excluded under paragraph (ce) of this section; and

(ii) The Secretary uses the median annual earnings of students with a high school diploma or GED using

data from the Census Bureau to calculate the earnings threshold measures described in 668.402.

(iii) The Secretary determines the earnings thresholds and publishes the thresholds annually through a 

notice in the Federal Register. 

(c) Exclusions. The Secretary excludes a student from the earnings threshold measure calculation if the 

Secretary determines that--
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(1) The student was enrolled full-time in any other eligible program at the institution or at another 

institution during the calendar year for which the Secretary obtains earnings information under 

paragraph (b)(1) of this section; 

(2) For undergraduate GE programs, the student completed a higher credentialed undergraduate GE 

program at the institution subsequent to completing the program as of the end of the most recently 

completed award year prior to the calculation of the earnings threshold measure under this section;

(3) For graduate GE programs, the student completed a higher credentialed graduate GE program at the 

institution subsequent to completing the program as of the end of the most recently completed award 

year prior to the calculation of the earnings threshold measure under this section;

(4) The student is enrolled in an approved prison education program; or

(5) The student died. 

(d) Earnings threshold measures not issued. The Secretary does not issue the earnings threshold

measure for a GE program under this section if--

(1) After applying the exclusions in paragraph (c) of this section, fewer than 30 students completed the 

program during the two-year or four-year cohort period, except as provided in paragraph (e) of this 

section; or

(2) The Federal agency with earnings data does not provide the median earnings for the program as 

provided under paragraph (b) of this section.

(e) Small program rates. For each award year, the Secretary—

(1) Determines the total number of students who completed small programs within a credential level at 

the institution during the four-year cohort period after making the exclusions in paragraph (c) of this 

section; and

(2) If that total is 30 or more students, calculates the small program rates for those small programs 

under the provisions of this section.

§ 668.4065 Issuing D/E rates and earnings threshold measure. 

(a) Administrative data. In calculating the D/E rates and earnings threshold measure for a GE program 

and the small program rates, the Secretary uses student enrollment, disbursement, and program data, 

or other data the institution is required to report to the Secretary to support its administration of, or 

participation in, the title IV, HEA programs. In accordance with procedures established by the Secretary, 

the institution must update or otherwise correct any reported data no later than 60 days after the end 

of an award year. 

(b) Process overview. The Secretary uses the administrative data to—

(1) Compile a list of students who completed each GE program during the cohort period and a list of the 

completers in small programs. The Secretary removes from those lists students who are excluded under 

§§668.404(e) or 668.405(c) and provides the list to institutions; 
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(2) Obtain from a Federal agency with earnings data the median annual earnings of the students on each 

list, as provided in paragraph (c) of this section; and

(3) Calculate the D/E rates and the earnings threshold measure and provide them to the institution.

(c) Obtaining earnings data. For each list submitted to the Federal agency with earnings data, the 

agency returns to the Secretary--

(1) The median annual earnings of the students on the list whom the Federal agency with earnings data

has matched to earnings data, in aggregate and not in individual form; and 

(2) The number, but not the identities, of students on the list that the Federal agency with earnings data

could not match.

(d) Calculating D/E rates and earnings threshold measure. 

(1) If the Federal agency with earnings data includes reports from records of earnings on at least 30 

students, the Secretary uses the median annual earnings provided by the Federal agency with earnings 

data to calculate the D/E rates and earnings threshold measure for each GE program or the small 

program rate, as provided in §668.404.

(2) If the Federal agency with earnings data 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 for 

D/E rates the same number of students with the highest loan debts as the number of students whose 

earnings SSA the Federal agency with earnings data did not match. For example, if the Federal agency 

with earnings data is unable to match three students out of 100 students, the Secretary orders by 

amount the debts of the 100 listed students and excludes from the D/E rates calculation the three 

largest loan debts. 

§ 668.4076 Determination of the D/E rates and earnings threshold measure. 

(a) Notice of determination. For each award year for which the Secretary calculates D/E rates and the

earnings threshold measure for a GE program or the small program rate, the Secretary issues a notice of 

determination informing the institution of the following: 

(1) The D/E rates for each GE program and for its small programs as determined under §668.404;

(2) The earnings threshold measure for each GE program and for its small programs as determined 

under §668.405;

(32) The determination by the Secretary of whether each GE program is passing, failing, or ineligible, as 

described in §668.403, and the consequences of that determination; 

(43) Whether the program could become ineligible based on its final D/E rates or earnings threshold 

measure for the next award year for which D/E rates or the earnings threshold measure are calculated 

for the program; and

(54) Whether the institution is required to provide the student warning under §668.4087. 

(b) Ineligible programs.Effective date of Secretary’s determination. The Secretary’s determination as to 

the D/E rates measure is effective on the date that is specified in the notice of determination.
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(1) If the Secretary determines that a GE program is ineligible under paragraph (a)(3) of this section, the 

program’s participation in the title IV, HEA programs ends upon—

(i) The signing of a new Program Participation Agreement that does not include that program; 

(ii) The completion of a termination action of program eligibility, if an action is initiated under 

subpart G of part 668; or 

(iii) A revocation of program eligibility, if the institution is provisionally certified.

(2) If the Secretary initiates an action under paragraph (b)(1)(ii) of this section, the institution may 

initiate an appeal under subpart G of this part if it believes the Secretary erred in the calculation of the 

program’s D/ E rates under § 668.404 or the earnings threshold measure under § 668.405. Institutions 

may not dispute a program’s ineligibility based upon its D/E rates or the earnings threshold measure 

except as described in this paragraph (b)(2). 

§ 668.4087 Consequences of the D/E rates or earnings threshold measure. 

(a) Student warning. 

(1) Events requiring a warning to students and prospective students. The institution must provide a 

warning with respect to a GE program to students and prospective students for any year for which the 

Secretary notifies an institution that the program could become ineligible based on its D/E rates or the 

earnings threshold measure for the next award year.

(2) Content of warning. The institution must provide—

(i) The relevant information to access the website maintained by the Secretary; 

(ii) A warning, as specified by the Secretary in a notice published in the Federal Register, that the 

program has not passed standards established by the U.S. Department of Education and may 

face restrictions on enrollment and/or could lose access to Federal grants and loans in the

subsequent award year; and

(iii) A statement that the student must attest to having seen the warning through the disclosure 

website established and maintained by the Secretary; and.

(iv) For warnings provided to enrolled students--—

(A) A description of the academic and financial options available to students to continue 

their education in another program at the institution, including whether the students 

could transfer credits earned in the program to another program at the institution and 

which course credits would transfer, in the event that the program loses eligibility for 

title IV, HEA program funds; 

(B) An indication of whether, in the event that the program loses eligibility for title IV, 

HEA program funds, the institution will--—

(1) Continue to provide instruction in the program to allow students to 

complete the program; and
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(2) Refund the tuition, fees, and other required charges paid to the institution 

by, or on behalf of, students for enrollment in the program; and

(C) An explanation of whether, in the event that the program loses eligibility for title IV, 

HEA program funds, the students could transfer credits earned in the program to 

another institution in accordance with an established articulation agreement or teachout plan or agreement.

(3) Alternative languages. To the extent practicable, the institution must provide alternatives to the 

English-language student warning for those students and prospective students for whom English is not 

their first language.

(4) Delivery to enrolled students. An institution must provide the warning required under this section in 

writing to each student enrolled in the program no later than 30 days after the date of the Secretary’s 

notice of determination under §668.4076 and maintain documentation of its efforts to provide that 

warning.

(5) Delivery to prospective students.

(i) An institution must provide the warning as required under paragraph (a)(2) of this section to 

each prospective student or to each third party acting on behalf of the prospective student at 

the first contact about the program between the institution and the student or the third party 

acting on behalf of the student by—

(A) Hand-delivering the warning and the relevant information to access the website 

maintained by the Secretary as a separate document to the prospective student or third 

party individually, or as part of a group presentation;

(B) Sending the warning and the relevant information to access the website maintained 

by the Secretary to the primary email address used by the institution for communicating 

with the prospective student or third party about the program, provided that the 

warning is the only substantive content in the email and that the warning is sent by a 

different method of delivery if the institution receives a response that the email could 

not be delivered; or

(C) Providing the warning and the relevant information to access the website 

maintained by the Secretary orally to the student or third party if the contact is by 

telephone.

(ii) An institution may not enroll, register, or enter into a financial commitment with the 

prospective student with respect to the program earlier than three business days after the

student completes the attestation described in subparagraph (a)(2)(iii) of this section.

(6) The provision of a student warning and/or the completion of an attestation does not mitigate the 

institution’s responsibility to provide accurate information to students concerning program status, nor

does will it be considered as evidence against a student’s claim if applying for a loan discharge.

(b) Restrictions.

(1) Ineligible program. Except as provided in §668.26(d), an institution may not disburse title IV, HEA 

program funds to students enrolled in an ineligible program. 
Gainful Employment 14

(2) Period of ineligibility. An institution may not seek to reestablish the eligibility of a failing program 

that it discontinued voluntarily either before or after D/E rates or the earnings threshold measure are 

issued for that program, or reestablish the eligibility of a program that is ineligible under the D/E rates or 

the earnings threshold measure, until three years following the date specified in the notice of 

determination informing the institution of the program’s ineligibility or the date the institution 

discontinued the failing program. 

(3) Restoring eligibility. An ineligible program, or a failing program that an institution voluntarily 

discontinues, remains ineligible until the institution establishes the eligibility of that program under 

§668.410(c). 

§ 668.4098 Reporting requirements for GE programs.

(a) 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 who received title IV, HEA program 

funds for enrolling in that program—

(i) Information needed to identify the student and the institution;

(ii) The name, CIP code, credential level, and length of the program;

(iii) Whether the program is a medical or dental program whose students are required to 

complete an internship or residency, as described in the definition of “cohort period” under

§ 668.402;

(iv) The date the student initially enrolled in the program;

(v) The student's attendance dates and attendance status (e.g., enrolled, withdrawn, or 

completed) in the program during the award year; and

(vi) The student's enrollment status (e.g., full-time, three-quarter time, half-time, less than halftime) as of the first day of the student's enrollment in the program;

(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, as described in 

§ 668.404(d)(1)(ii), for enrollment in the program that the institution is, or should reasonably be, 

aware of;

(iii) The total amount of institutional debt, as described in § 668.404(d)(1)(iii), the student owes 

any party after completing or withdrawing from the program;

(iv) The total amount of tuition and fees assessed the student for the student's entire 

enrollment in the program; and

(v) The total amount of the allowances for books, supplies, and equipment included in the 

student's title IV Cost of Attendance (COA) for each award year in which the student was 

enrolled in the program, or a higher amount if assessed the student by the institution for such 

expenses;
Gainful Employment 15

(3) As described in a notice published by the Secretary in the Federal Register, any other information the 

Secretary requires the institution to report.

(b)(1) An institution must report the information required under paragraphs (a)(1) and (2) of this section 

no later than—

(i) July 31, following the date these regulations take effect, for the second through seventh 

award years prior to that date;

(ii) For medical and dental programs that require an internship or residency, July 31, following 

the date these regulations take effect for the second through eighth award years prior to that 

date; and

(iii) For subsequent award years, October 1, following the end of the award year, unless the 

Secretary establishes different dates in a notice published in the Federal Register.

(2) For any award year, if an institution fails to provide all or some of the information required under

paragraph (a) of this section, the institution must provide to the Secretary an explanation, acceptable to 

the Secretary, of why the institution failed to comply with any of the reporting requirements.

§ 668.409 Supplementary performance measures.

(a) General. The Secretary assesses and analyzes the following information prior to issuing an institution 

a new Program Participation Agreement, and may consider the information in determining whether to 

certify, or condition the participation of, an institution under §668.13 and 668.14--

(1) Withdrawal rate. The percentage of students in the enrollment cohort who withdrew from the 

institution within 100 percent or 150 percent of the length of the program.

(2) Debt-to-earnings rates. The debt-to-earnings rates under §668.403, if applicable.

(3) Small program rates. The small program rates under §668.404(g), if applicable.

(4) Instructional, advertising, and administrative expenses. The amounts the institution spent on 

instruction/instructional activities; advertising or recruiting activities; and administrative activities, 

which include the salaries and compensation of the owners and principal officers, as provided through a 

disclosure in the audited financial statements required under §668.23(d).

(5) Job placement rate. If the institution is required by its accrediting agency or State to calculate a 

placement rate for either the institution or a program, or both, the placement rate or rates, calculated 

using the methodology required by that accrediting agency or State, and the name of that accrediting 

agency or State.

§ 668.410 Certification requirements for GE programs.

(a) Transitional certification for existing programs. 

(1) Except as provided in paragraph (a)(2) of this section, an institution must provide to the Secretary no 

later than December 31 of the year in which this regulation takes effect, in accordance with procedures 

established by the Secretary, a certification signed by its most senior executive officer that each of its 

currently eligible GE programs included on its Eligibility and Certification Approval Report meets the 
Gainful Employment 16

requirements of paragraph (d) of this section. The Secretary accepts the certification as an addendum to 

the institution’s program participation agreement with the Secretary under §668.14.

(2) If an institution makes the certification in its program participation agreement pursuant to paragraph 

(b) of this section between July 1 and December 31 of the year in which this regulation takes effect, it is 

not required to provide the transitional certification under this paragraph.

(b) Program participation agreement certification. As a condition of its continued participation in the 

title IV, HEA programs, an institution must certify in its program participation agreement with the 

Secretary under §668.14 that each of its currently eligible GE programs included on its Eligibility and 

Certification Approval Report meets the requirements of paragraph (d) of this section. An institution 

must update the certification within 10 days if there are any changes in the approvals for a program, or 

other changes for a program that make an existing certification no longer accurate.

(c) Establishing eligibility and disbursing funds. 

(1) An institution establishes thea GE program’s eligibility for title IV, HEA program funds of a GE 

program by updating the list of the institution’s eligible programs maintained by the Department to 

include that program, as provided under 34 CFR 600.21(a)(11)(i). By updating the list of the institution’s 

eligible programs, the institution affirms that the program satisfies the certification requirements in 

paragraph (d) of this section. Except as provided in paragraph (c)(2) of this section, after the institution 

updates its list of eligible programs, the institution may disburse title IV, HEA program funds to students 

enrolled in that program. 

(2) An institution may not update its list of eligible programs to include a GE program, or a GE program 

that is substantially similar to a failing program that the institution voluntarily discontinued or became 

ineligible as described in §668.4087(b), that was subject to the three-year loss of eligibility under 

§668.4087(b), until that three-year period expires. 

(d) GE program eligibility certifications. An institution certifies for each eligible program included on its 

Eligibility and Certification Approval Report, at the time and in the form specified in this section, that

each eligible GE program it offers is approved by a recognized accrediting agency or is otherwise 

included in the institution’s accreditation by its recognized accrediting agency, or, if the institution is a 

public postsecondary vocational institution, the program is approved by a recognized State agency for 

the approval of public postsecondary vocational education in lieu of accreditation.

§ 668.411 Severability.

If any provision of this subpart or its application to any person, act, or practice is held invalid, the 

remainder of the subpart or the application of its provisions to any person, act, or practice shall not be 

affected thereby.

* * *

§ 668.91 Initial and final decisions.

(a)

* * *

(3) Notwithstanding the provisions of paragraph (a)(2) of this section -
Gainful Employment 17

* * *

(vi) In a termination action against a program based upon the program’s failure to meet the 

requirements in § 668.404 or 668.405, the hearing official must terminate the program’s 

eligibility unless the hearing official concludes that the Secretary erred in the applicable 

calculation.

* * *

§ 668.43 Institutional and programmatic information.

* * * 

(d) 

(1) Disclosure website. An institution must provide such information as the Secretary prescribes through 

a Federal Register notice for disclosure to prospective students and enrolled students through a website 

established and maintained by the Secretary. The Secretary maywill conduct consumer testing to inform 

the design of the website. The Secretary may include on the website the following items, among others

disclosures:

(i) The primary occupations (by name and/or SOC code) that the program prepares students to 

enter, along with links to occupational profiles on O*NET (www.onetonline.org) or its successor 

site.

(ii) As reported to or calculated by the Secretary, the program's or institution’s completion rates 

and withdrawal rates for full-time and less-than-full-time students and the program's 

withdrawal rates.

(iii) The length of the program in calendar time (i.e., weeks, months, years).

(iv) The total number of individuals enrolled in the program during the most recently completed 

award year.

(v) As calculated by the Secretary, the loan repayment rate for students or graduates who 

entered repayment on title IV loans during a period determined by the Secretary.

(vi) The total cost of tuition and fees, and the total cost of books, supplies, and equipment, that 

a student would incur for completing the program within the length of the program.

(vii) Of the individuals enrolled in the program during the most recently completed award year, 

the percentage who received a title IV loan and/or a private loan for enrollment in the program.

(viii) As calculated by the Secretary, the median loan debt of students who completed the 

program during the most recently completed award year or for all students who completed or 

withdrew from the program during that award year.
Gainful Employment 18

(ix) As provided by the Secretary, the median earnings of students who completed the program 

or of all students who completed or withdrew from the program, during a period determined by 

the Secretary.

(x) Whether the program is programmatically accredited and the name of the accrediting 

agency, as reported to the Secretary.

(xi) The supplementary performance measures in § 668.409668.13(e).

(xii) A link to the U.S. Department of Education's College Navigator Wweb site, or its successor 

site, or other similar Federal resource.

(2) Program web pages. The institution must provide a prominent link to, and any other needed 

information to access, the website maintained by the Secretary on any web page containing academic, 

cost, financial aid, or admissions information about the program or institution. The Secretary may 

require the institution to modify a webpage if the information is not sufficiently prominent, readily 

accessible, clear, conspicuous, or direct.

(3) Distribution to prospective students. The institution must provide the relevant information to access 

the website maintained by the Secretary to any prospective student (as defined in 34 CFR§ 668.402), or 

a third party acting on behalf of the prospective student, before the prospective student signs an 

enrollment agreement, completes registration, or makes a financial commitment to the institution.

* * *

§ 668.13 Certification procedures.

(e) Supplementary performance measures. The Secretary assesses and analyzes the following 

information, among other information, prior to issuing an institution a new Program Participation 

Agreement, and may consider the information in determining whether to certify, or condition the 

participation of, an institution under § 668.13 and 668.14--

(i) Withdrawal rate. The percentage of students in the enrollment cohort who withdrew from 

the institution within 100 percent or 150 percent of the length of the program.

(ii) Debt-to-earnings rates. The debt-to-earnings rates under §668.404, if applicable.

(iii) Earnings threshold measure. The earnings threshold measure under §668.405, if applicable.

(iii) Small program rates. The small program rates under §668.404(g) and 668.405(e), if 

applicable.

(iv) Educational spending. The amounts the institution spent on instruction/instructional 

activities; academic support; and support services, with a separate report for recruiting 

activities, advertising, and other pre-enrollment expenditures, as provided through a disclosure 

in the audited financial statements required under §668.23(d).

(v) Job placement rate. If the institution is required by its accrediting agency or State to calculate 

a placement rate for either the institution or a program, or both, the placement rate or rates, 

calculated using the methodology required by that accrediting agency or State, and the name of 

that accrediting agency or State.
Gainful Employment 19

(vi) Licensure pass rate. If a program is designed to meet educational requirements for a specific 

professional license or certification that is required for employment in an occupation, and the 

institution is required by an accrediting agency or State to report passage rates for the licensure 

exam for the program, such passage rates.

Last updated on 3/8/2022