Gainful Employment Rule

David vs. Goliath

In 1986, I graduated from Penn State University. My costs to attend for four years are about the same it costs to attend there today for one year. In a little over two decades, the cost of higher education has skyrocketed; and what has occurred at Penn State is the norm. And in today’s job market, many students are unable to find employment in their chosen field – if they can find a job at all.

In an apparent effort to protect students from incurring high student debts, while at the same time not being able to pay them off, the Obama administration has enacted the Gainful Employment Rule (DOE Press Release). This rule is designed to punish institutions whose students graduate and their salary to loan-debt ratio is too high. In other words, too much of their income is going to pay back their student loan and these students are at a higher risk of defaulting on their loans.

The punishment for wayward institutions is a corresponding reduction in student loans. An institution that cannot extend student loans cannot survive. In theory it seems that the federal government is looking to protect unsuspecting students from predatory institutions; but upon closer inspection, this rule is designed for the federal government to seize control of higher education is this nation.

The major problem with this proposed rule is that it will only affect for-profit or vocational colleges. These institutions play a major role in developing young people to learn a skill and enter the workforce. These institutions fill a void left by traditional colleges and universities as they reach out to those who are not prepared for a four year school either financially, emotionally or otherwise.

Since this rule will only affect for-profit schools, its unfairness can easily be demonstrated.

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