Report: Gainful Employment Repeal Would Cost $4.7B

August 1, 2018

A repeal of the Obama administration's gainful-employment rule would cost $4.7 billion over 10 years, according to an Education Department cost analysis, Politico reported this week.

Much of that spending would be driven by Pell Grants that would otherwise be denied to programs -- most of them at for-profit institutions -- that would fail to meet accountability standards if the rule was left in place. One in 10 vocational programs assessed under the rule last year failed the gainful-employment standards; of the failing programs, 98 percent were at for-profits.

The Education Department has not yet released a proposed overhaul of the Obama regulation. But multiple news outlets have reported that Education Secretary Betsy DeVos plans to eliminate the rule and, in its place, offer more data on program-level outcomes at all higher ed institutions.

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