December 12, 2013
The Education Department sent a new proposal for the gainful employment rule and long-promised estimates of how many programs would be affected Wednesday evening. The 10-second version: It no longer uses the repayment rate and evaluates programs based on debt-to-income ratios and cohort default rates. It cut a provision that immediately ended federal financial aid eligibility for a program with a cohort default rate of more than 40 percent. And it would affect even more programs than the department’s initial proposal.