Most colleges and universities help millions of Americans earn a degree or diploma to lead to economic security and a better life. In the wake of the Great Recession, it was revealed that too many for-profit colleges – by enrolling hundreds of thousands of students – sought to take advantage of the federal financial aid system to make windfall profits. Issued in 2014, the Gainful Employment (GE) Rule was designed to ensure that career-education programs leave their graduates with debts that are affordable relative to their actual incomes. It distinguishes between programs that provide affordable training that leads to well-paying jobs and those that do not, based on the debt-to-income ratios of their graduates.

This fact sheet provides an overview of the gainful employment regulation, including the impact on the for-profit college industry, and pushes for the Biden Administration to restore rules to prevent student aid from going to colleges that operate wasteful, fraudulent, and abusive programs.

Read the fact sheet