AIM Act

To direct the Secretary of Education to make reasonable adjustments to earnings data for graduates of cosmetology gainful employment programs. 1. Short title This Act may be cited as the Accurate Income Measure Act of 2017 AIM Act 2. Adjustments to rule relating to gainful employment (a) Adjustments to rule For any rule promulgated by the Department of Education relating to title IV of the Higher Education Act, Program Integrity, Gainful Employment (including 79 Fed. Reg. 64890 (October 31, 2014), and any other related rule that may be promulgated by the Department) (referred to in this Act collectively as the Rule (1) for covered programs, any earnings data for graduates utilized in the Rule shall recognize the finding of the United States District Court in the case titled American Association of Cosmetology Schools v. DeVos (Civil Action No.: 17–0263 (RC)) (2) any institution offering a covered program may appeal a zone or failing debt to earnings rate by submitting, as alternate earnings data, the most current earnings data issued by the Bureau of Labor Statistics for the most relevant geographical region, at no higher than the 50th percentile, for the Standard Occupational Classification code, or combination of such codes, in which graduates were placed in or found employment. (b) Prohibitions Until the date on which the Secretary issues the adjustments to the Rule required under subsection (a)— (1) all covered programs shall be exempt from the Rule; (2) the Secretary shall not publish final debt-to-earnings rates for covered programs; (3) notwithstanding any other provision of law, institutions of higher education providing covered programs shall not be required to report the debt-to-earnings rates of covered programs on any consumer disclosures relating to gainful employment; and (4) the Secretary shall not determine any covered program ineligible to participate in programs authorized under title IV of the Higher Education Act of 1965 ( 20 U.S.C. 1070 (c) Study The Secretary, jointly with the Commissioner of the Internal Revenue Service, shall carry out a study to develop a method of adjusting earnings data under the Rule to account for the underreporting of income by graduates of covered programs. (d) Definitions In this Act: (1) Covered program The term covered program (A) is designed to lead to gainful employment (as that term is used in sections 101(b) and 102(b) of the Higher Education Act of 1965) ( 20 U.S.C. 1001(b) (B) is identified by Department of Education Classification of Instructional Program codes 12.0401 through 12.0499, 51.3306, or 51.3501. (2) Institution of higher education The term institution of higher education 20 U.S.C. 1001(b) (3) Secretary The term Secretary

Summary: Accurate Income Measure Act of 2017 or the AIM Act This bill requires the Department of Education (ED) to revise gainful employment regulations that require career training programs to meet minimum thresholds with respect to the debt-to-income rates of their graduates. Specifically, the bill requires ED to ensure that those regulations account for estimated underreporting of earned income by graduates of career training programs in cosmetology and related personal grooming arts, holistic health, or massage therapy. Cosmetology, holistic health, and massage therapy career training programs may appeal a zone or failing debt-to-earning rate by submitting alternative earnings data based on the most current Bureau of Labor Statistics earnings data for the Standard Occupational Classification code. Until the date on which ED issues adjustments to its gainful employment regulations, the bill: (1) exempts those programs from the regulations, (2) bans ED from publishing final debt-to-earnings rates for those programs, (3) exempts institutions of higher education that provide those programs from a requirement to report the rates on consumer disclosures relating to gainful employment, and (4) prohibits ED from making those programs ineligible for federal financial aid funds due to the application of the regulations.