“Gainful Employment Final Rule” is Passed
On June 2, 2011, a major development in education shook up the collegiate world: the Obama Administration released final regulations requiring for-profit schools and career colleges to better prepare students for “gainful employment” or risk losing access to Federal student financial aid. Though the majority of such programs are doing an incredible job preparing future generations of the American workforce, these regulations will ensure that students are able to use their degrees and training to secure jobs in their field, which provide ample salary with which to repay loans.
3 New Requirements for For-Profits, Career Colleges
Under the new regulations, for-profit and career colleges must meet at least one of the following three requirements in each fiscal year. Penalties are associated with a failure to maintain these metrics, culminating in a termination of access to Federal student financial aid for programs that fail the litmus test three years out of a four year period. Every year, schools must meet one of the following requirements:
1.) 35% of former students must be repaying their loans
2.) Estimated annual loan payment for average graduate must not exceed 30% of discretionary income
3.) Estimated annual loan payment for average graduate must not exceed 12% of total earnings
iGrad: The #1 Financial Capability Resource for Gainful Employment
iGrad is proud to be a trusted partner of the higher education community, striving to complement the education, financial, and career services that fine institutions offer their students. A college degree is still one of the best investments money can buy, and as these new regulations take effect, iGrad remains as invaluable a resource as ever. The financial well-being of the college student and recent graduate is our primary focus and we firmly believe that this requires not only financial competence, but career resources, as well. At iGrad, we’ve uniquely positioned ourselves as a comprehensive financial capability platform, offering loan counseling, money management skills and career services to students in an interactive, online community.
iGrad’s focus goes far beyond merely helping students meet the Gainful Employment Final Rule mandates; we enable students to thrive as they make pivotal life decisions, offering a 360-degree picture of financial health that empowers young people and informs respective schools of their needs and progress. We’re passionate about the many partnerships we have with nationwide colleges and universities and are excited about the prospects of helping more and more schools offer their students the best in financial literacy.
Check out our School Demo Video today to discover how iGrad can help your institution lower default rates, improve the gainful employment of graduates, and offer your students the financial literacy they deserve!
