The Biden-Harris Administration made public a series of robust policies designed to safeguard students from the burden of unmanageable student loan debt.
These new restrictions, announced on September 27, aim to prevent about 700,000 children from participating in one of around 1,700 failing programs. This change, a significant alteration in the landscape of finance for higher education, is a response to mounting worries over skyrocketing tuition and the debt that many graduates face.
“These protections are about ensuring career college programs live up to higher education’s promise as a pathway to a better a life. Students overwhelmingly say that they’re going to college to find a good job and build financial security, but too often their programs leave them no better off financially than those with no postsecondary education at all. These rules will stop taxpayer dollars from going to schools that continually saddle students with unaffordable debt. Separately, we’re ensuring all students have increased information to make good choices," said U.S. Department of Education Under Secretary James Kvaal.
The updated Gainful Employment (GE) Rule is aimed at career-oriented programs in the intention of assisting about 700,000 students on an annual basis. It zeroes down on degrees that result in their graduates being in a position where they cannot afford their loan payments or where their salaries are comparable to those of others living in the same state but do not have a college degree.
The GE Rule was created to function in conjunction with the Financial Value Transparency (FVT) Framework that was developed. This plan aims to provide in-depth information on the actual costs of attending college as well as the financial ramifications that can be anticipated as a result of these costs. It is mandatory for individuals who wish to enroll in particular classes to attest that they have read the required material. It is anticipated that the FVT will provide coverage for around 400 advanced level classes, with a total enrollment of approximately 120,000 students.