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From Margaret Reiter 

11/20/2013 

This contains language suggestions on the application section 

and smaller changes below that on a few other points. 

§668.415 Application requirement for new GE programs. 

(a) An institution must apply to the Secretary to establish 

a new GE program if-- 

(1) The program has the same CIP code as, or is 

substantially similar to, a program that-- 

(i) Became ineligible under this subpart; or 

(ii) Was a failing or zone program that the institution 

voluntarily discontinued or is replacing a currently failing or 

zone program; 

(2) The institution does not currently offer an eligible 

program within the same CIP family; or 

(3) The institution currently has, or had within the 

previous three years, a failing program under its GE measures 

within the same CIP family. 

(b) For a new program requiring the approval of the 

Secretary under paragraph (a), an institution must submit a 

materially complete application to the Secretary in a format 

prescribed by the Secretary and certified as accurate signed by 

Comment [MSOffice1]: Generally revised to 

remove ambiguous language and narratives, or 

recommendations. 
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the institution’s most senior executive officer. The 

application must include the following information: 

(1) The CIP code, credential level, and length of 

program of the program, and a description of how the 

institution determined the CIP code. 

(2) The primary occupations, by name and the 6-digit 

SOC codes, that the institution represents the program will 

prepare students to enter, and a description of how the 

institution determined which SOC codes applied. 

(3) The total cost of tuition and fees;, and the 

total cost of books and supplies that a student would incur 

for completing the program; and the projected cost of 

attendance. 

(4) The date of the expected first day of instruction 

of the program as a title IV eligible program. 

(5) The projected total enrollment for each of the 

first three years that the institution will offer the 

program. 

(6) The projected entry-level earnings of program 

completers as reported to the institution by at least 5 

employers in the projected area of employment who have 

hired starting-level employees within the last 3 years in 

the primary occupations identified; or if the institution 

is unable to obtain the information from at least 5 such 
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employers, an explanation of why it is unable to do so 

(such as, in the projected area of employment, there are 

fewer than 5 such employers or the industry is new in the 

projected area of employment); and the projected entrylevel earnings of program completers reported by those 

employers the institution supplied. likely employers. 

 (7) A narrative description of how the program was 

reviewed by, approved by, or developed in conjunction with 

an advisory committee, a government agency, businesses, or 

organizations that will likely employ completers of the 

program. 

A description of the projected area of employment; if the 

institution believes the projected area of employment would 

take more than a one hour commute from the institution 

location, an explanation of how the institution selected 

the area. 

(8) (8) Letters of recommendation for the program 

from at least three businesses or organizations that are 

likely to employ completers of the program signed by an 

executive officer of each business. 

Documentation showing the identity and contact 

information for the employers that reported projected 

earnings to the institution, a description of their 
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businesses; the approximate number of employees each 

employer currently employs in the SOC codes identified; or 

if none are employed, an explanation of when and why the 

employer could be expected to hire employees in those 

occupations in the future. 

(9) The projected ratio of debt to earnings, using 

the program’s planned cost of attendance and projected 

entry-level starting earnings, documenting either, 

(i) that the debt can be repaid with 8 percent of 

earnings or 20 percent of discretionary earnings [using the 

same definitions and parameters as provided in 34 CFR 

668.403 and 668.404]; or 

(ii)that the cost of tuition, fees, books and supplies 

is less than the Pell grant amount allowable for the 

program. 

 (910) Documentation that the program has been 

approved by the institution’s accrediting agency or is 

otherwise included in the institution’s accreditation by 

its accrediting agency, or comparable documentation if the 

institution is a public postsecondary vocational 

institution approved by a recognized State agency for the 

approval of public postsecondary vocational education in 

lieu of accreditation. 

Comment [MSOffice2]: This is an exception 

Richard mentioned. 
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(11) For each occupation that the institution 

represents the program will prepare students to enter, 

whether that the program meets applicable State 

requirements, that completers of the program would have to 

satisfy in the State in which the program is offered, [and 

if the program is offered in a metropolitan area next to 

another state, also in that other state],

(i) to be allowed to take a licensing or other exam 

necessary to obtain a state license or certification; and 

 (ii) to mMeet State licensure or certification 

requirements, if any, in the State in which the program is 

offered; 

(12) For each occupation that the institution 

represents the program will prepare students to enter, 

documentation that the institution has programmatic 

accreditation and meets any other criteria the institution 

knows or should reasonably know, are generally needed for a 

student 

(i) to qualify to take an exam, such as a 

certification exam for the occupation, 

(ii) to qualify for certification that is generally 

required or preferred by employers, and 

(iii) Otherwise to obtain employment in the occupation

in the State in which the program is offered.

Comment [MSOffice3]: Added to attempt to 

address Sandra and others who pointed out the need 

for the reg to address schools located close to the 

state line, so that many completers will seek work in 

that other state. 

Comment [MSOffice4]: Sometimes the 

requirement is just to be allowed to take the licensing 

exam, not to get the license 

Comment [MSOffice5]: To address Neil’s point 

about how the school would know. This language is 

fairly common in the law: “knows or reasonably 

should know” 
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The programmatic accreditation or other criteria are considered 

“generally needed,” even if a student might be able to 

substitute experience in the occupation or alternative measures 

beyond program completion for the programmatic accreditation of 

the program or the other criteria. 

 (13) If the program is intended to replace a program 

that is currently offered or was offered within the 

previous three years, a description of the changes the 

institution made to improve the program’s performance under 

the requirements of this subpart. 

(14) For any program for which the program includes 

experiential placements, such as externships, documentation 

showing, 

(i) the school has arranged sufficient placements that 

meet the requirements, if any, of the program’s 

accreditation or the state in which the program will be 

offered; 

(ii) the placements are consistent with the 

representations to be made to prospective students; and 

(iii) the placements are either within one hour 

commute from the institution, or the institution justifies 

why the placements arranged are further away and 
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demonstrates that students will be fully informed before 

they enroll of the distances that may be required to travel 

to the experiential placement. 

(c) Documentation -- The institution shall retain all 

substantiating information, data, and evidentiary material the 

institution relied on to provide the information required by the 

application. 

(d) The Secretary approves the GE program if-- 

(1) The institution satisfies provides all the information 

requirementsrequired byof paragraph (b); 

 (2) There are no material or unresolved issues 

relating to the institution’s administration of or 

participation in the title IV, HEA programs; and 

(3) The institution has complied with the reporting 

and disclosure requirements in §§668.412 and 668.413, 

respectively for all of its GE programs. 

(ed) The Secretary notifies the institution if its 

application for the GE program is approved or denied. If the 

application is denied, the Secretary informs the institution of 

the reasons for the denial, and the institution may petition the 

Secretary to reconsider that denial. 

(fe) An institution may begin disbursing title IV, HEA 

program funds to students enrolled in a new GE program subject 
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to this section on the date the Secretary approves the program 

under paragraph (d). 

A few other small changes to other sections: 

§668.403 Gainful employment framework 

P. 7, 403(b)(3): Add Perkins loans. 

P. 8, 403(c)(1)(ii)(A): 

(ii) A GE program is “failing” the D/E rates if

either-- 

(A) Its discretionary income rate is greater than 30 

percent or the income for the denominator of the rate is 

negative or zero; and or

(B) Its annual earnings rate is greater than 12 

percent or the denominator is zero. 

P. 9, 403(c)(1)(iv)(B): 

“(B) Is not passing the D/E rates in one out of any 

four three consecutive award years for which the program’s 

D/E rates are calculated.” 

§668.404 Calculating D/E rates 

P. 11, 404(b)(2): 
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For undergraduate degree and certificate programs, 

aAmortizing the median loan debt over a 10-year repayment 

period using the lowest average of the annual interest rate 

on Federal Direct Unsubsidized Loans for undergraduate 

students during the four years prior to the start of the 

two-year period; and for graduate programs, amortizing the 

median loan debt over a 10-year repayment period using the 

average of the annual interest rate on Federal Direct 

Unsubsidized Loans for graduate students during the four 

years prior to the start of the two-year period. 

P. 12, 404(d)(1): 

“(d) Loan debt. In determining the loan debt for a 

student, the Secretary-- 

(1) Includes the amount of FFEL, Perkins, and Direct Loans 

that the student borrowed for attendance in the GE program ” 

(PLUS Loans made to parents of dependent students or Direct 

Unsubsidized Loans that were converted from TEACH Grants are not 

included), any private education loans reported by the 

institution, and any debt originating from the institution, such 

as from institutional financing or payment plans, that the 

student is obligated to repay, upon the student’s completion of 

the program regardless of who holds the debt; 

P. 44 Reporting: §668.412(a)(2)(ii) 

Comment [MSOffice6]: Here and 

everywhere the loans to be included 

are mentioned, add Perkins loans.

Comment [MSOffice7]: And correct 

possible ambiguous language to 

eliminate the possibility of this 

being interpreted to only include 

private loans that have a beginning 

due date of the student’s 

completion of the program: 
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The total amount the student received from private educational loans for attendance in the 

program, which the institution is, or reasonably should be aware of; and 

P. 45, Comment [MSOffice8]: Is Cross 

reference to 668.419(a) for 

definition of prospective student 

needed? (“Prospective 

student means an individual who has 

contacted an eligible institution 

requesting information concerning 

admission to that institution.”)