From: Jessica Ranucci, Primary Negotiator for Consumer Advocates; Yael Shavit, Primary 

Negotiator Representing State Attorneys General; Kyra Taylor, Primary Negotiator 

Representing Legal Assistance Organizations that Represent Students or Borrowers; and 

John Whitelaw, Primary Negotiator for Individuals with Disabilities or Groups 

Representing Them

To: U.S. Department of Education 

Re: Proposed revision to 34 C.F.R. § 30.80(f)-(g) to include waiver of debts incurred for 

institutions/programs that have lost Title IV eligibility

Background: 

We appreciate the Department’s commitment to providing debt relief to students who attended 

schools or programs that did not provide them sufficient financial value. We further appreciate 

that the Department has recognized that the loss of a program or institution’s Title IV eligibility 

in certain circumstances enumerated in the Department’s draft, specifically, under the gainful 

employment rules and cohort default rate, is an appropriate basis for debt relief. While we 

generally support the Department’s proposal (with one important exception, noted in the section

below), we propose that the Department instead consider providing debt relief in broader 

circumstances in which the Department takes an accountability action that would lead to a 

borrower’s institution’s or program’s loss of Title IV eligibility. 

Department actions for loss of Title IV eligibility only happen in extreme circumstances, after 

the Department has satisfied a high evidentiary burden. Such an action is a clear marker of a 

program or school that did not provide sufficient value to its students: that is exactly why the 

Department is prohibiting its participation in the future. This proposed regulatory language 

encompasses additional instances where the Department takes action to end Title IV eligibility in 

response to school misconduct that harms students. Further, one important circumstance covered 

by this proposed regulation that is not covered by the Department’s current proposal is when an 

institution loses accreditation, resulting in a Department action for loss of Title IV eligibility, but 

remains open. 

Proposed Regulatory Text: 

§ 30.80 Waiver of Federal student loan debts. 

(f) Programs or institutions subject to a loss of eligibility 

(1) The Secretary may waive the outstanding balance on any loan obtained to 

attend a program or institution with respect to which the Secretary takes any 

termination action, revocation action, or similar action to remove title IV, 

HEA eligibility, with respect to any borrowers who were enrolled during an 

appropriate period of time prior to the action, as determined by the 

Secretary, which shall not be less than one year prior to the action. 

Gainful employment. (1) For loans received for enrollment in a gainful 

employment (GE) program, as described in 20 U.S.C. 1002(b)(1)(A)(i) and 

(c)(1)(A), the Secretary may waive repayment if the following conditions are 

met: 

(i) The Secretary determines that the GE program has failed the debt-toearnings (D/E) rates measure, or has failed the earnings premium measure, 
under paragraph (f)(2) of this section in two out of any three consecutive 

award years for which the program’s D/E rates or earnings premium, as 

applicable, are calculated.

(ii) The borrower— 

(A) Completed the program and the borrower was in the cohort whose debt was 

used to calculate the failing D/E rates or earnings premium; or 

(B) Withdrew from the program within— 

(1) Four award years prior to the most recent award year in the cohort period 

used to calculate the failing D/E rates or earnings premium, for a bachelor’s 

degree, doctoral degree, or first professional degree program; 

(2) Two award years prior to the most recent award year in the cohort period 

used to calculate the failing D/E rates or earnings premium for an associate 

or master’s degree program; or 

(3) The same award year as the most recent award year in the cohort period 

used to calculate the failing D/E rates or earnings premium for a certificate 

program. 

(iii) The borrower did not submit an acknowledgment under § 668.605. 

(2) For the purpose of this paragraph (f)— 

(i) The Secretary calculates D/E rates and the earnings premium in accordance 

with §§ 668.403, 668.404, and 668.405, beginning with the first award year 

that the Secretary calculates D/E rates and the earnings premium for a 

program under part 668, subpart Q; and 

(ii) For award years 2015-2022 and any subsequent award year where the 

Secretary does not calculate D/E rates and the earnings premium for a program 

under part 668, subpart Q for reasons other than those described in § 

668.403(f) or § 668.404(d), as applicable, the Secretary will calculate the 

measures by [using available data and a methodology that reasonably 

approximates those described in §§ 668.403, 668.404, and 668.405]. 

(g) Cohort default rates. For loans received for attendance at an institution 

that lost its eligibility to participate in any title IV, HEA program because 

of its high cohort default rate, as defined in 20 U.S.C. 1085(m), the 

Secretary may waive repayment of the loan provided that the borrower was 

included in the cohort whose debt was used to calculate the cohort default 

rate.

(g) [reserved]
Alternative proposal on existing Gainful Employment language in proposed 30.80(f): 

Our proposal above would largely encompass the Department’s Gainful Employment proposal. 

However, the Department may choose to keep its initial approach, or add our proposed language 

in addition to its Gainful Employment language. In that circumstance, we propose certain 

revisions to the Department’s Gainful Employment proposal below. Specifically, this proposal 

provides relief to borrowers who attended a cohort that failed the debt to earnings and income 

premium measures, regardless of whether that cohort failure ultimately resulted in the program 

losing Title IV eligibility.

Additionally, as we raised in the second session, we have serious concerns about the 

acknowledgement provision in proposed 30.80(f). This section excludes from debt relief all

borrowers who enroll in a gainful employment program after that program has failed the D/E 

metric or earnings premium for one year, but before the program has lost Title IV eligibility 

because all prospective students are required to complete an acknowledgement to obtain further 

Title IV aid under 668.605(g). These are some of the most disadvantaged borrowers. We are 

extremely concerned that this acknowledgement will be manipulated by predatory actors. In the 

past, predatory schools have rushed students through enrollment paperwork without providing 

them the opportunity to understand or even read what they are signing. Further, this could not be 

more contrary to the original purpose of the acknowledgement provision, which was to "assist 

students in making informed choices about their postsecondary education" by giving prospective 

students an early warning that a program could potentially lose Title IV. It was not intended to 

have a punitive effect of excluding borrowers from receiving debt relief. Additionally, we have 

concerns that this provision is not administrable. Would the Department require that the 

acknowledgment indicate that the borrower understands that they are essentially waiving the 

right to future waiver of their loan balance if the program fails the metrics again? This is not 

specified in the regulation. If not, wouldn't such an acknowledgement be materially incomplete? 

Finally, 668.605(h) makes clear that an acknowledgement is not “considered as dispositive 

evidence against a student's claim if applying for a loan discharge.” Yet, the Department’s 

proposed requirement that a borrower not complete the acknowledgement seems like an end-run 

around that principle, as it makes the acknowledgement dispositive that a student cannot obtain a 

waiver of their loan balance.

Proposed Regulatory Text: 

(f) Gainful employment. (1) For loans received for enrollment in a gainful 

employment (GE) program, as described in 20 U.S.C. 1002(b)(1)(A)(i) and 

(c)(1)(A), the Secretary may waive repayment the outstanding balance if the 

following conditions are met: 

(i) The Secretary determines that the GE program has failed the debt-toearnings (D/E) rates measure, or has failed the earnings premium measure, 

under paragraph (f)(2) of this section in two out of any three consecutive 

award years for which the program’s D/E rates or earnings premium, as 

applicable, are calculated. 

(ii) The borrower— 

(A) Completed the program and the borrower was in the cohort whose debt was 

used to calculate the failing D/E rates or earnings premium; or
(B) Withdrew from the program within— 

(1) Four award years prior to the most recentany award year in the which a

cohort period used to calculate thehad failing D/E rates or earnings premium, 

for a bachelor’s degree, doctoral degree, or first professional degree 

program;

(2) Two award years prior to the most recentany award year in the which a

cohort period used to calculate thehad failing D/E rates or earnings premium 

for an associate or master’s degree program; or

(3) The same award year as the most recent award year in theany cohort period 

used to calculate thethat had failing D/E rates or earnings premium for a 

certificate program.

(iii) The borrower did not submit an acknowledgment under § 668.605.

(2) For the purpose of this paragraph (f)— 

(i) The Secretary calculates D/E rates and the earnings premium in accordance 

with §§ 668.403, 668.404, and 668.405, beginning with the first award year 

that the Secretary calculates D/E rates and the earnings premium for a 

program under part 668, subpart Q; and

(ii) For award years 2015-2022 and any subsequent award year where the 

Secretary does not calculate D/E rates and the earnings premium for a program 

under part 668, subpart Q for reasons other than those described in § 

668.403(f) or § 668.404(d), as applicable, the Secretary will calculate the 

measures by [using available data and a methodology that reasonably 

approximates those described in §§ 668.403, 668.404, and 668.405].