REVISED DEBT-TO EARNINGS & GAINFUL EMPLOYMENT RULES 

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§ 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 668.232, obtain the Secretary's approval; 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 

668.407504.

(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. 

(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 668.410505.

* * *

Subpart Q—Gainful Employment (GE) ProgramsDebt-to-Earnings (DE) programs and rates.

§ 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-- 

Commented [A1]: We have placed the D/E rate 

calculation and disclosure framework under this revised 

subpart Q, clarifying that D/E rates would be calculated and 

disclosed for all “D/E programs.” The calculation and 

disclosure of these informational rates is authorized under 20 

U.S.C. § 1092, the same statutory authority used for 668.43. 

D/E rates would still be used to determine eligibility for GE 

programs under the new subpart R. 
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(a) The Secretary determines that the program is eligible for title IV, HEA program funds; and 

(b) An institution reports institutions report information about the program to their D/E programs to the 

Secretary and the Secretary. calculates and issues D/E rates.

§ 668.402 Definitions.

The following definitions apply to this subpart. and to subpart R.

Annual earnings rate. The percentage of a GED/E program’s annual loan payment compared to the annual 

earnings of the students who completed the D/E program, as calculated under §668.404403.

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 D/E 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 D/E program 

and whose debt and earnings outcomes are used to calculate debt-to -earnings rates. The Secretary 

uses a two-year cohort period to calculatescalculate the debt-to-earnings rates for a D/E program 

when the number of students (after exclusions identified in §668.404403(e)) in the two-year cohort 

period is 30 or more. The Secretary uses a four-year cohort period to calculate the debt-to-earnings 

rates when the number of students completing the D/E program in the two-year cohort period is less 

than 30 and when the number of students completing the D/E 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 fifth and sixth third and fourth award years prior to the award year for which the D/E rates 

are calculated pursuant to §668.4034. For example, if D/E rates are calculated for award year 

2021-2022, the two-year cohort period is award years 2015-2016 and 2016-20172017-2018 and 

2018-2019; and earnings data used will be for calendar years 2020 and 2021; or 

(ii) For a D/E program whose students are required tomay complete an medical or dental internship 

or residency, the eighth and ninthsixth 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 2021-2022, 

the two-year cohort period is award years 2012-2013 and 2013-20142014-2015 and 2015-2016. 

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

program that-- 

(A)

(B)(A) 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 

(B) (C) Must beIs commonly completed before the student may bebecomes licensed by a State 

and board certified for professional practice or service. 

(C) (2) Is programmatically accredited if required under Federal or State law.

(2) For the four-year cohort period— 

Commented [A2]: Both the two-year and four-year cohort 

periods would begin with the fifth year preceding the award 

year for which rates are being calculated. Placing the initial 

measurement four full years following graduation will afford 

graduates additional time to establish normal earning levels 

and thus better capture whether typical earnings for the 

program are reasonable relative to typical debt burden.

Commented [A3]: We have clarified that the earnings data 

for all cohorts is the data from the most recent calendar year, 

consistent with all prior D/E metrics.

Commented [A4]: We have extended this accommodation 

to all programs with qualifying internships and residencies, 

not just medical and dental programs. This will ensure more 

consistent measurement across all such programs.
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(i) The third, fourth, For the four-year cohort period the fifth, sixth, seventh, and sixtheighth award 

years prior to the award year for which the D/E rates are calculated pursuant to §668.404403. For 

example, if D/E rates are calculated for award year 2021-2022, the twofour-year cohort period is 

award years 2013-2014, 2014-2015, 2015-2016, and 2016-2017, 2017-2018, and 2018-2019; and 

earnings data used will be for 2020 and 2021; or 

(ii) For a D/E program whose students are required to may complete a medical or dentalan internship 

or residency, the sixth, seventh, eighth, and ninth, tenth, and eleventh 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 2021-2022, the four-year cohort period is award years 2010-2011, 2011-2012, 2012-

2013, and 2013-2014, 2014-2015, and 2015-2016.. For this purpose, a required medical or 

dentalan 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)(A) 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)(B) Must beIs commonly completed before the student may beis licensed by a State 

and board certified for professional practice or service. ; and

(C) Is programmatically accredited if required under Federal or State law. 

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

the D/E program. For the purposes of this subpart, thehierarchy of undergraduate credential levels are: 

credentials, from lowest to highest, is: undergraduate certificate or diploma, associate degree, 

bachelor’s degree, and post-baccalaureate certificate.; and the. 

Debt-to-earnings program (D/E program). An educational program offered by an institution under §668.8 

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.

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

under §668.404403. 

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

discretionary earnings of the students who completed the D/E program, as calculated under 

§668.404403. 

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. The agency must have data that includes 

unearned income and self-employment income for graduates and is sufficient to match with at least 

90 percent of title 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 educationalundergraduate D/E 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. ).

Commented [A5]: This would clarify the hierarchy of 

undergraduate and graduate credentials when consolidating 

debt.

Commented [A6]: D/E rates would be calculated for all 

D/E programs at all institutions.

Commented [A7]: The full 6-digit CIP code would 

distinguish individual D/E programs, consistent with the 

design of the CIP taxonomic scheme.

Commented [A8]: This would ensure a more complete and 

accurate earnings number, and thus better D/E rates.

Commented [A9]: D/E rates calculated for graduate GE 

programs would be strictly for informational purposes. D/E 

rates are not an appropriate measure of “gainful 

employment” for graduate degree programs, for the reasons 

articulated in Initial Comments and Concerns of Proprietary 

Schools.
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Length of the D/E 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 D/E 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 D/E program or who has been contacted directly by the institution or 

by a third party on behalf of the institution about enrolling in a D/E program.

Small D/E program. A GED/E program for which the number of students completing the program in the 

two- and four-year cohort periods is fewer than 30.

Small D/E program rates. The discretionary earnings rate and annual earnings rate calculated on an 

aggregate basis for all small D/E programs sharing the same four-digit CIP code at an institution within 

the same credential level in accordance with §668.404403(g).

Student. An individual who received title IV, HEA program funds for enrolling in the GEa D/E 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 §668.414; and 

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

(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 668.406. 

(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. 

(2) A GE program fails the D/E rates if-- 

(i) Its discretionary earnings rate is greater than 20 percent or the income for the denominator of the 

rate (discretionary earnings) is negative or zero; and 

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

earnings) is zero. 

(3) A GE program becomes ineligible, subject to paragraph (c)(4), 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 

rate does not make those small programs ineligible. 

Commented [A10]: This would ensure that the small D/E 

program relates bear some relationship to the programs and 

related occupations for which they have been calculated. As 

discussed during the negotiations, combining data for all 

small D/E programs will not provide meaningful data to 

students and could prove highly misleading. 

Commented [A11]: This section concerning the GE 

framework has been moved to the new subpart R that applies 

solely to GE programs. 
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(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 rate 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. 

§ 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 GED/E program as follows: 

(1) Discretionary earnings rate = annual loan payment / (the higher of the mean or 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)(1) Annual earnings rate = annual loan payment / the higher of the mean or median annual earnings. 

(b) Annual loan payment. 

(1) The Secretary calculates the annual loan payment for a GED/E program by--

(i) (1)(i) Determining the median loan debt of the students who completed the D/E 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 amountactual cost 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 

§668.404403(b)(1)(ii); and 

(iii) Calculating the median of the remaining amounts. 

(2) Amortizing 

(iii)(2) The Secretary amortizes the median loan debt--

(i) (i)

(A) Over a 10-year repayment period for a D/E 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 D/E program that leads to a bachelor's degree or a 

master's degree; or 

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

(ii) (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 D/E programs, post-baccalaureate certificate D/E programs, and 

(A) associate degree D/E programs. For these D/E 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 D/E programs and master's degree D/E programs. For these D/E

Commented [A12]: Throughout this proposal, we have 

restored the use of the higher of the mean or median, 

consistent with all prior D/E metrics. This provides more 

balanced earnings data and thus better D/E rates.
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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 D/E programs. For these D/E 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 

D/E programs and first professional degree D/E programs. For these D/E 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 D/E program, if the two-year 

cohort period is award years 2017-20182015-2016 and 2018-20192016-2017, the interest rate would be the 

average of the interest rates for the years from 2014-2015 through 2016-2017 through 2018-2019. 

(c) Annual earnings.

(1) The Secretary obtains from a Federal agency with earnings data, under §668.405402, the most currently 

available mean and median annual earnings of the students who completed the GED/E program during 

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

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

(d) Loan debt and assessed chargesactual cost. 

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

(i) TheIncludes 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; D/E program;

(ii) AnyIncludes 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 D/E program and 

that are required to be reported by the institution under §668.408407; and 

(iii) TheIncludes the amount outstanding, as of the date the student completes the D/E program, on 

any other credit (including any unpaid charges) extended by or on behalf of the institution for 

enrollment in any GE D/E program attended at the institution that the student is obligated to 

repay after completing the GE D/E 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; 

(iv) Excludes the amount of any Direct PLUS Loans made to parents of dependent students and Direct 

Unsubsidized Loans that were converted from TEACH Grants.

(2) The Secretary uses the information reported by the institution under §668.407(a)(2) )(iv) and (v) to 

determine the actual cost for a student. In determining the actual cost for a student, the Secretary-

(i) Includes the total amount of tuition, fees, books, supplies, and equipment for the program; 

(ii) Excludes any institutional grant, scholarship, or discount provided to the student; and 

Commented [A13]: We have replaced “assessed charges” 

with “actual cost” to emphasize that this represents the 

amount the institution actually charged the student.

Commented [A14]: Consistent with the 2014 rule, nonstudent debt and grants would be excluded. If parental debt is 

included in the numerator, parental earnings would need to 

be included in the denominator.

Commented [A15]: This approach produces a more 

accurate D/E rate, as it captures the actual cost paid by 

students, not the “sticker price” that may have been assessed 

prior to the application of institutional aid. This is extremely 

important given the prevalence of tuition discounting and 

institutional aid in higher education. 
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(iii) Excludes any Federal or State non-loan funds the student received and used to pay the cost of 

tuition, fees, books, supplies, and equipment. 

(3) The Secretary attributes all the loan debt incurred by the student for , and attributes the actual costs 

reported for the student under § 668.407(a)(2)(iv) and (v),for enrollment in any--

(i) (i) Undergraduate GEUncompleted undergraduate D/E program at the institution to the highest 

credentialed undergraduate GE D/E 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 

(4) (3) The Secretary excludes any loan debt and actual costs incurred by the student for enrollment in D/E 

programs at other institutions. However, the Secretary may include loan debt or actual costs incurred 

by the student for enrollment in GEuncompleted D/E 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.

(5) (e) The Secretary uses the lesser of the loan debt or actual costs to calculate the annual loan payment 

for the D/E rates.

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) One or more of the student's title IV loans were in a military-related deferment status at any time during 

the calendar year for which the Secretary obtains earnings information under paragraph (c) of this 

section; 

(2)(3) The student was enrolled full-time in any other eligible D/E 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; 

(3)(4) For undergraduate GED/E programs, the student completed a higher credentialed 

undergraduate GE D/E program at the institution subsequent to completing the D/E 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

(4)(5) For graduate programs, the student completed a higher credentialed graduate 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)(6) The student died. 

(f) D/E rates not issued. The Secretary does not issue D/E rates for a GED/E program under §668.405404 if--

Commented [A16]: This clarifies that debt/actual costs are 

only rolled up if the lower level program was not completed. 

If the lower level program was completed, the debt/actual 

cost taken on should remain attached to that completed 

program. D/E rates the incorporate debt/actual cost from 

prior or unrelated programs corrupt the quality of the rates 

and may mislead consumers.

Commented [A17]: We have reinstated this important 

exclusion, which appeared in the 2014 rule and 

acknowledges that earnings of graduates in a military-related 

deferment are not representative of graduate earnings and 

thus corrupt the quality of the D/E rates. 
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(1) After applying the exclusions in paragraph (e) of this section, fewer than 30 students completed the D/E 

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 mean and median earnings for the D/E 

program as provided under paragraph (c) of this section. 

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

(i) Determines the total number of students who completed small D/E programs within a credential 

level at the institution during the four-year cohort period; and 

(ii) If that total is 30 or more students, calculates the small D/E program rates for those small D/E

programs under the provisions of this section. 

§ 668.405404 Issuing and challenging D/E rates.

(a) Administrative data.Process Overview. In calculating the D/E rates for a GED/E program and the small

D/E 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 set forth in this section, each award 

year, the Secretary, uses this administrative data to determine the D/E rates for a D/E program at an 

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

award year. by —

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

(1) CompileCreating a list of the students who completed each GEthe D/E program during the applicable 

cohort period and a list ofproviding the completers in small programs. The Secretary removes list to the 

institution; 

(2) Allowing the institution to correct the information about the students on the completers list; 

(1) Obtaining from those lists students who are excluded under §668.404(e) and provides the list to 

institutions; 

(2)(3) Obtain from athe Federal agency with earnings data the mean and median annual earnings of 

the students on each the list, as provided in paragraph (c) of this section; and;

(3)(4) Calculate theCalculating draft D/E rates and provideproviding them to the institution.;

(5) (c) Allowing the institution to challenge the median loan debt used to calculate the draft D/E rates; 

(6) Calculating final D/E rates and providing them to the institution; and 

(7) Allowing the institution to appeal the final D/E rates. 

Creating the completers list. 

(1) The Secretary selects the students to be included on the list by - 

(i) Identifying the students who completed the program during the cohort period from the data 

provided by the institution under § 668.407; and 

(ii) Indicating which students would be removed from the list under § 668.403(e) and the specific 

reason for the exclusion. 

Commented [A18]: In this section 668.404, we have 

reintroduced the processes for reviewing completers lists, 

challenging the median loan debt, and filing alternate 

earnings appeals. These processes, all present in the 2014 

rule and absent from the Department’s current proposal, 

afford critical opportunities for institutions to correct data. 

This process makes for better, more accurate D/E rates.
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(2) The Secretary provides the list to the institution and states which cohort period was used to select the 

students. 

Institutional corrections to the completers list. 

(1) The Secretary presumes that the list of students and the identity information for those students are 

correct unless, as set forth in procedures established by the Secretary, the institution provides evidence 

to the contrary satisfactory to the Secretary. The institution bears the burden of proof that the list is 

incorrect. 

(2) No later than 45 days after the date the Secretary provides the completers list to the institution, the 

institution may - 

(i) Provide evidence showing that a student should be included on or removed from the completers 

list pursuant to § 668.403(e); or 

(ii) Correct or update a student's identity information and the student's program attendance 

information. 

(3) After the 45-day period expires, the institution may no longer seek to correct the completers list of 

students or revise the identity or program information of those students included on the list. 

(4) 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 completers list. The 

Secretary provides the institution with the final list and indicates the cohort period or cohort periods 

used to create the final completers list. 

Obtaining earnings data. For each completers list submitted to the Federal agency with earnings data, the 

agency returns to the Secretary--

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

earnings data has matched towith earnings data of $1.00 or more, in aggregate and not in individual 

form; and 

(2) The number, but not the identities, of students on the list who reported no income or that the Federal 

agency with earnings data could not match.

(d) Calculating draft D/E rates.

(1) If the Federal agency with earnings data includes reports from records of earnings onof at least $1.00 or 

more for at least 30 students, the Secretary uses the higher of the mean or median annual earnings 

provided by the Federal agency with earnings data to calculate the D/E rates for each GED/E program or 

the small D/E program rate, as provided in § 668.404403. 

(2) If the Federal agency with earnings data reports that it was unable to match or had no reported income 

for one or more of the students on the final completers list, the Secretary does not include in the 

calculation of the median loan debt 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. or 

reported no income. For example, if the Federal agency with earnings data is unable to match threetwo

students out of 100 students and one student reported no income, 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.

Commented [A19]: We have clarified that individuals 

with no reported income would be excluded from the D/E 

rate calculations. An individual who reports no income does 

not provide earnings data that is representative of what may 

be earned by an individual actively employed in the field. 

Further, individuals reporting no income may not be seeking 

employment, or may be unable to secure employment for 

reasons unknown to the Department (e.g., temporary 

disability, lack of child care). D/E rates incorporating this 

data could be significantly misleading and particularly 

damaging for D/E programs graduating high percentages of 

women. Multiple studies have shown that women, more 

often than men, are forced to leave the workforce to care for 

children (e.g., Center for American Progress, “The Child 

Care Crisis is Keeping Women Out of the Workforce”). 
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(3) The Secretary notifies the institution of the draft D/E rates for the D/E program and provides the mean 

and median annual earnings obtained from the Federal agency with earnings data and the individual 

student loan information used to calculate the rates, including the loan debt that was used in the 

calculation for each student. 

(4) The draft D/E rates and the data described in this paragraph (e) are not considered public information. 

Institutional corrections to draft D/E rates. 

(1) The Secretary presumes that the loan debt information used to calculate the median loan debt for the 

program under § 668.403 is correct unless the institution provides evidence satisfactory to the 

Secretary, as provided in paragraph (f)(2) of this section, that the information is incorrect. The institution 

bears the burden of proof to show that the loan debt information is incorrect and to show how it should 

be corrected. 

(2) No later than 45 days after the Secretary notifies an institution of the draft D/E rates for a D/E 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 under § 668.403 by submitting evidence, in a format 

and through a process determined by the Secretary, that demonstrates that the median loan debt 

calculated by the Secretary is incorrect. 

(3) In a challenge under this section, the Secretary does not consider - 

(i) Any objection to the mean or median annual earnings that the Federal agency with earnings data 

provided to the Secretary; 

(ii) More than one challenge to the student-specific data on which draft D/E rates are based for a D/E 

program for an award year; or 

(iii) Any challenge that is not timely submitted. 

(1) The Secretary considers the 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. 

(2) If the information from an accepted challenge changes the median loan debt of the D/E program, the 

Secretary recalculates the D/E program's draft D/E rates. 

(3) Except as provided under § 668.404, an institution that does not timely challenge the draft D/E rates for 

a program waives any objection to those rates. 

Final D/E rates. 

(1) After expiration of the 45-day period and subject to resolution of any challenge under paragraph (f) of 

this section, a program's draft D/E rates constitute its final D/E rates. 

(2) The Secretary informs the institution of the final D/E rates for each of its D/E programs by issuing the 

notice of determination described in § 668.406(a). 

(3) After the Secretary provides the notice of determination to the institution, the Secretary may publish 

the final D/E rates for the program, unless the Secretary has received timely notice that the institution 

intends to file an alternate earnings appeal under § 668.405. 

Conditions for corrections and challenges. An institution must ensure that any material that it submits to 

make any correction or challenge under this section is complete, timely, accurate, and in a format 

Commented [A20]: This ensures that misleading D/E rates 

would not be published. The Secretary would publish rates 

only after alternate earnings appeals were completed and the 

most accurate D/E rates calculated. 
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acceptable to the Secretary and consistent with any instructions provided to the institution with the notice 

of its draft D/E rates and the notice of determination.

§ 668.405 D/E rates alternate earnings appeals. 

D/E rates alternate earnings appeals. An institution may file an alternate earnings appeal to request 

recalculation of the program's most recent final D/E rates issued by the Secretary. The alternate earnings 

must be from the same calendar year for which the Secretary obtained earnings data from the Federal 

agency with earnings data to calculate the final D/E rates under § 668.403.

Basis for appeals. 

(1) The institution may use alternate earnings from an institutional survey conducted under paragraph (c) of 

this section, or from a State-sponsored data system under paragraph (d) of this section, to recalculate 

the program's final D/E rates. 

(2) When submitting its appeal of the final D/E rates, the institution must - 

(i) Use the annual loan payment used in the calculation of the final D/E rates; and 

(ii) Use the higher of the mean or median alternate earnings. 

(3) The institution must include in its appeal the alternate earnings of all the students who completed the 

program during the same cohort period that the Secretary used to calculate the final D/E rates under § 

668.403 or a comparable cohort period, provided that the institution may elect - 

(i) If conducting an alternate earnings survey, to exclude from the survey, in accordance with the 

standards established by NCES, all or some of the students excluded from the D/E rates 

calculation under § 668.403(e); or 

(ii) If obtaining annual earnings data from one or more State-sponsored data systems, and in 

accordance with paragraph (d)(2) of this section, to exclude from the list of students submitted to 

the administrator of the State-administered data system all or some of the students excluded 

from the D/E rates calculation under § 668.403(e). 

Survey requirements for appeals. An institution must -

(1) In accordance with the standards included on an Earnings Survey Form developed by NCES, conduct a 

survey to obtain annual earnings information of the students described in paragraph (b)(3) of this 

section. The Secretary will publish in the Federal Register the Earnings Survey Form that will include a 

universe survey pilot-tested following the effective date of this regulation, as well as the survey 

standards. An institution is not required to use the Earnings Survey Form but, in conducting a survey 

under this section, must adhere to the survey standards and present to the survey respondent in the 

same order and same manner the same survey items, included in the Earnings Survey Form; and 

(2) Submit to the Secretary as part of its appeal - 

(i) A certification signed by the institution's chief executive officer attesting that the survey was 

conducted in accordance with the survey standards in the Earnings Survey Form, and that the 

mean or median earnings used to recalculate the D/E rates was accurately determined from the 

survey results; and 

(ii) Supporting documentation requested by the Secretary. 

State-sponsored data system requirements for appeals. An institution must -

Commented [A21]: We have restored this critical 

opportunity, found in the 2014 rule, for institutions to correct 

and improve their earnings data. We have also provided this 

opportunity to all institutions for all D/E programs to ensure 

that the data and rates are as accurate for consumers as 

possible.
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(1) Obtain annual earnings data from one or more State-sponsored data systems by submitting a list of the 

students described in paragraph (b)(3) of this section to the administrator of each State-sponsored data 

system used for the appeal; 

(2) Demonstrate that annual earnings data were obtained for more than 50 percent of the number of 

students in the cohort period not excluded pursuant to paragraph (b)(3) of this section, and that number 

of students must be 30 or more; and 

(3) Submit as part of its appeal - 

(i) A certification signed by the institution's chief executive officer attesting that it accurately used 

the State-provided earnings data to recalculate the D/E rates; and 

(ii) Supporting documentation requested by the Secretary. 

Appeals procedure. 

(1) For any appeal under this section, in accordance with procedures established by the Secretary and 

provided in the notice of draft D/E rates under § 668.404 and the notice of determination under § 

668.406, the institution must - 

(i) Notify the Secretary of its intent to submit an appeal no earlier than the date that the Secretary 

provides the institution the draft D/E rates under § 668.404(e)(3), but no later than 14 days after 

the date the Secretary issues the notice of determination under § 668.406(a) informing the 

institution of the final D/E rates under § 668.404(g); and 

(ii) Submit the recalculated D/E rates, all certifications, and specified supporting documentation 

related to the appeal no later than 60 days after the date the Secretary issues the notice of 

determination. 

(2) An institution that timely submits an appeal that meets the requirements of this section is not subject to 

any consequences under § 668.504 based on the D/E rates under appeal while the Secretary considers 

the appeal. If the Secretary has published final D/E rates under § 668.404(g), the program's final D/E 

rates will be retracted until the appeal has been determined. 

(3) An institution that does not submit a timely appeal waives its right to appeal the D/E program's failing 

D/E rates for the relevant award year. 

Appeals determinations. 

(1) Appeals denied. If the Secretary denies an appeal, the Secretary notifies the institution of the reasons 

for denying the appeal, and the program's final D/E rates previously issued in the notice of 

determination under § 668.406(a) remain the final D/E rates for the program for the award year. 

(2) Appeals granted. If the Secretary grants the appeal, the Secretary notifies the institution that the appeal 

is granted, that the recalculated D/E rates are the new final D/E rates for the program for the award 

year, and of any consequences of the recalculated rates under § 668.504. The Secretary also publishes 

the D/E program's new final D/E rates. 

Conditions for alternate earnings appeals. An institution must ensure that any material that it submits to 

make an appeal under this section is complete, timely, accurate, and in a format acceptable to the Secretary 

and consistent with any instructions provided to the institution with the notice of determination.

§ 668.406 Determination and publication of thefinal D/E rates. following appeal.
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(a) Notice of determination. of D/E rates. For each award year for which the Secretary calculates D/E rates for 

a GED/E program or the small D/E program rate, the Secretary issues a notice of determination informing the 

institution of the following: 

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

403.

(2) 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; 

(3) Whether the program could become ineligible based on its final D/E rates for the next award year for 

which D/E rates are calculated for the program; and 

(4) Whether the institution is required to provide the student warning under §668.407. 

(b) 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, subject to the challenges and appeals 

described in §§ 668.404 and 668.405, respectively.

§ 668.407 Consequences of the D/E rates. 

(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 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; 

(iv) 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 

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

website established and maintained by the Secretary. 

(vi) 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 the institution will-- 

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

complete the program; and 

(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 

Commented [A22]: This section concerning consequences 

has been moved to the new subpart R that applies solely to 

GE programs.
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(C) An explanation of whether the students could transfer credits earned in the program to 

another institution. 

(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 §668.406 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 (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 in subparagraph (a)(2)(iii). 

(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. 

(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 are issued for that program, or reestablish the 

eligibility of a program that is ineligible under the D/E rates, 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). 

§ 668.408 Reporting requirements for GED/E programs.

(a) In accordance with procedures established by the Secretary, an institution must report--

Commented [A23]: We urge the Department to consider 

each of the information reporting obligations detailed in this 

section and to consider removing those data points that can 

be obtained by the Department directly through NSLDS and 

other available systems. This would reduce the already 

considerable administrative burden this rule places on 

institutions.
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(1) (1) For each student enrolled in a GED/E 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 D/E program; 

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

complete an internship or residency, as described in § 668.402; 

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

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

in the D/E 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 D/E program; 

(2) (2) If the student completed or withdrew from the GED/E program during the award year—

(i) The date the student completed or withdrew from the D/E program; 

(ii) The total amount the student received from private education loans, as described in 

§ §668.404403(d)(1)(ii), for enrollment in the D/E program that the institution is, or should reasonably 

be, 

(ii) aware of; 

(iii) The total amount of institutional debt, as described in § 668.404403(d)(1)(iii), the student owes 

any party after completing or withdrawing from the D/E program; 

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

the D/E program and any institutional grants, scholarships, or discounts provided to the student;

and

(iv)(v) The total amount of Federal or State non-loan funds the student received and used to pay the 

cost of tuition, fees, books, supplies, and equipment; and

(v)(vi) 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 D/E program, or a higher amount if assessed the student by the institution; 

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

Secretary requires the institution to report in order to calculate the D/E rates described in this section. 

(b)(1) 

(1) An institution must report the information required under paragraphs (a)(1) and (2) of this section no 

later than— 

(i) July 31October 1, following the date these regulations take effect, or 90 days following the date 

the Secretary makes available the procedures and reporting instructions, whichever is later, for the 

second throughfifth, sixth, seventh , and eighth award years prior to that date; 

(ii) For medical and dentalD/E programs that requireinclude an internship or residency, July 31October 

1, following the date these regulations take effect, or 90 days following the date the Secretary makes 

Commented [A24]: This would afford institutions 

additional time to gather the data required to calculate the 

initial round of D/E rates. We do not believe one month 

following the effective date of the regulations is sufficient.
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available the procedures and reporting instructions, whichever is later, for the second through eighth, 

ninth, tenth, and eleventh 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) (2) For any award year, if an institution fails or is unable 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 or was unable to comply with any 

of the reporting requirements. The Secretary will deem acceptable the inability of an institution to 

provide all or some of the required information if the institution is no longer required to maintain such 

information under applicable Federal or State record retention requirements.

§ 668.408 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.

* * * 

Commented [A25]: Institutions would not be penalized if 

unable to produce data from years that exceed required 

record retention periods.
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Subpart QR—Gainful Employment (GE) Programsprograms.

§ 668.401501 Scope and purpose. 

This subpart applies to an educationala GE 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 reportscertifies information about the programits GE programs to the Secretary.; and

§ Beginning with the 2026-2027 award year, the Secretary determines whether a GE program is eligible for 

title IV loans or otherwise subject to the consequences set forth in §668.403504. 

§ 668.502 Gainful employment framework. 

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

occupation if the program--

(1) Satisfies the applicable certification requirements in §668.414505; and 

(2) Is not an ineligible program under the D/E rates calculated pursuant to §668.403. 

(b) Debt-to-earnings rates (D/E rates).) for GE programs. 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 §668.406. 403.

(c) Outcomes of the D/E rates for GE programs.

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

(i) Its discretionary earnings rate is less than or equal to 2030 percent; or 

(ii) Its annual earnings rate is less than or equal to 812 percent. 

(2) (2) A GE program fails the D/E rates if--

(i) Its discretionary earnings rate is greater than 2030 percent or the income for the denominator of 

the rate (discretionary earnings) is negative or zero; and 

(ii) Its annual earnings rate is greater than 812 percent or the denominator of the rate (annual 

earnings) is zero.

(3) A GE program becomes ineligible, subject to paragraph (c)(4), 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 

rate 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 rate 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. 

§ 668.406503 Determination of the D/E rates for GE programs. 

(a) Notice of determination. For each award year for which the Secretary calculates D/E rates 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 §668.404403; 

Commented [A1]: This helps to ensure that sanctions 

would not be imposed for metrics calculated using data from 

years that precede the effective date of the rule. 

Commented [A2]: We have returned these D/E rate 

thresholds to those promulgated by the Obama 

administration in the 2011 rule. We believe these thresholds 

are more reasonable, and this simplified approach is superior 

to one involving a zone, as contemplated in 2014. 

Commented [A3]: These paragraphs were relocated to the 

next section in the discussion of consequences.
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(2) The determination by the Secretary of whether each GE program is passing, failing, or ineligible, as 

described in §668.403502, and the consequences of that determination; 

(3) Whether the program could become ineligible based on its final D/E rates for the next award year for 

which D/E rates are calculated for the program; and 

(4) (4) Whether the institution is required to provide the student warning under §668.407504. 

(b) 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.

§ 668.407504 Consequences of the D/E rates for GE programs. 

(a) Waiver of consequences.

(1) The Secretary will waive and will not impose the consequences set forth in this section based on D/E 

rates calculated using data from award or calendar years that precede July 1, 2023. 

(2) For any given year, the Secretary may waive sanctions if the Secretary determines – 

(i) That the GE program trains students to be essential workers or to enter professions experiencing 

critical national job shortages; 

(ii) That the GE program’s earnings were negatively and materially impacted by an unforeseen event 

beyond the institution’s control such as a global pandemic; or 

(iii) That the GE program’s earnings were negatively and materially impacted by wage discrimination 

experienced by the program’s graduates. 

Loss of Eligibility. 

(1)

(i) A GE program becomes ineligible for title IV loans, subject to paragraph (b)(2), if it fails the D/E 

rates in three out of any four consecutive award years for which the program’s D/E rates are 

calculated, except that failing the small program rate does not make those small programs 

ineligible. 

(ii) In the event a GE program becomes ineligible pursuant to paragraph (b)(1)(i), students currently 

enrolled in the GE program at the time the program becomes ineligible may continue to receive 

title IV loans until they have graduated from the program. 

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

only a small program rate with respect to that program, the GE 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. 

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 GE program could become ineligible to disburse title IV loan funds based 

on its D/E rates for the next award year. 

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

Commented [A4]: Sanctions would not be imposed for 

metrics calculated using data from years that precede the 

effective date of the rule. 

Commented [A5]: This would afford the Secretary 

flexibility to ensure that critical training opportunities are not 

reduced during times of great need, or based on wage 

discrimination or events beyond an institution’s control.

Commented [A6]: This additional year would afford 

institutions a more reasonable opportunity to adjust for 

market shifts or other unforeseen events like a global 

pandemic. 

Commented [A7]: This would ensure that students who 

have enrolled in or remained enrolled in a program with full 

knowledge of the program’s D/E rates would be permitted to 

receive title IV aid until they complete their program. The 

GE rule should not force mass withdrawals. This would be 

terrible for students.
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(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. 

(iv) For warnings provided to enrolled students--

(A) (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

attempt to transfer credits earned in the program to another program at the institution, 

and which course credits mightwould transfer, and an express statement that whether to 

receive credits on transfer is always at the discretion of the receiving institution, in the 

event that the program loses eligibility for title IV, HEA program funds loans; 

(B) (B) An indication of whether the institution will--

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

complete the program; and 

(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) (C) An explanation of whether the students could transfer credits earned in the program to 

another institution. 

(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 §668.406 and maintain documentation of its efforts to provide that warning. 

(5) (5) Delivery to prospective students. 

(i) An institution must provide the warning as required under paragraph (c)(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 
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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)(i) 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. 

(i)(ii) (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 in subparagraph (ac)(2)(iii). 

(ii)(iii) The Secretary shall provide institutions with real-time, on demand access to the website 

maintained by the Secretary for the purposes of identifying the students who have completed the 

attestation in subparagraph (a)(2)(iii) and determining the date such attestation was completed. 

(b) Restrictions.

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

program loan funds to students enrolled in an ineligible GE program. 

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

that it discontinued voluntarily either before or after failing D/E rates are issued for that program, or

reestablish the eligibility of a program that is ineligible under the D/E rates, 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 GE program, or a failing program that an institution voluntarily 

discontinues after failing D/E rates are issued for that program, remains ineligible until the institution 

establishes the eligibility of that program under §668.410505(c). 

(3) Exclusion. For any year for which the Secretary provides the institution a notice of 

determination under section 668.503 that a D/E rate is failing for a GE program, the program is 

excluded from consequences in this section if the D/E rate contained in that notice of 

determination exceeds the median debt to earnings rate for programs leading to the same primary 

occupation (by name and/or CIP code) as calculated by the Secretary using the median loan debt 

and median earnings data provided by all participating institutions under section 668.43 and 

subpart Q or as published on the College Scorecard.

§ 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 

Commented [A8]: Any discussion regarding information 

that the Department will review as part of certification or 

recertification determinations should appear in 668.13 and 

apply to all institutions. 
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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. 

§ 668.410505 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 

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 

(2) (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) (1) An institution establishes the eligibility for title IV, HEA program funds loans 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 loans to students 

enrolled in that program. 

(2) (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 §668.407504(b), that was subject to the three-year loss of eligibility under 

§668.407504(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.
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§ 668.506411 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. 

* * *

§ 668.43 Institutional and programmatic information. 

* * *

(d)

(1) 

(1) D/E program rates. An institution must make readily available to enrolled and prospective students the 

D/E rates calculated for D/E programs under subpart Q. 

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

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

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

design of the website. The Secretary may include on the website, among other disclosures: 

(i) The D/E rates calculated for D/E programs under subpart Q. 

(i)(ii) The primary occupations (by name and/or SOC code) that thea D/E program prepares 

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

successor site. 

(ii)(iii) As reported to or calculated by the Secretary, the D/E program's completion rates for full-time 

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

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

(iv)(v) The total number of individuals enrolled in the D/E program during the most recently 

completed award year. 

(v)(vi) 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)(vii) The total cost of tuition and, fees, and the total cost of books, supplies, and equipment,other 

institutional charges that a student would incur for completing the D/E program within the length 

of the program. 

(vii)(viii) Of the individuals enrolled in the D/E 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)(ix)As calculated by the Secretary in accordance with § 668.403, the median loan debt of students 

who completed the D/E program during the most recently completed award year or for all 

students who completed or withdrew from the program during that award year. 

(ix)(x) As provideddetermined by the Secretary in accordance with § 668.403, the greater of the 

mean or median earnings of students who completed the D/E program or of all students who 

completed or withdrew from the program, during a period determined by the Secretary. 
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(x)(xi) Whether the D/E program is programmatically accredited and the name of the accrediting 

agency, as reported to the Secretary. 

(xi) The supplementary performance measures in § 668.409. 

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

other similar Federal resource. 

(2)(3) Program web pages. The institution must provide a link and any needed information to access 

the website maintained by the Secretary on any web pagewebpage containing academic, cost, financial 

aid, or admissions information about the D/E program. The Secretary may require the institution to 

modify a webpage if the information is not sufficiently prominent, readily accessible, clear, conspicuous, 

or direct. 

(3)(4) 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.