Rep. Takano Statement on the Elimination of the Gainful Employment Rule
Washington, D.C. – Rep. Mark Takano (D-Calif.) released this statement following the Trump Administration’s announcement of the elimination of the gainful employment rule, which set clear standards for all programs at for-profit institutions and non-degree programs at public and private, non-profit institutions with a track record of leaving students with mountains of student loan debt and inadequate job prospects.
“The Trump Administration is greenlighting the reckless use of federal student funds and taxpayer dollars to bankroll the for-profit college system by eliminating the Obama-era gainful employment rule. Since beginning her tenure in the Department of Education, Secretary DeVos has been determined to destroy safeguards that were put in place to hold the for-profit college system accountable. This decision will be costly to students and taxpayers, with estimated costs as high as $4.7 billion over ten years and will incentivize fraudulent and predatory for-profit schools to continue their irresponsible practices.
“Too many students – women, minorities, and veterans in particular – have graduated from for-profit schools with a worthless degree and large amounts of student loan debt that will be difficult for them to repay. The gainful employment regulation was put in place to protect students from these outcomes by establishing standards for career programs and for-profit colleges that engage in bad practices to the detriment of students’ futures. There was a clear goal of ensuring that program tuition and fees were in line with the earnings a student could expect to make upon graduating.
“It is essential to increase transparency and accountability in the for-profit college system to protect students and taxpayers. Eliminating this rule is just one of the many ways that the Trump Administration is catering to the for-profit system. We need to ensure that these institutions are held accountable. This week I reintroduced, the PRO Students Act, which would strengthen oversight and regulations, and hold schools accountable for violations and poor performance. Congress must seriously consider these comprehensive reforms to accomplish what the Trump Administration is failing to do, which is defend students and ensure that these institutions are being good stewards of taxpayer dollars.”
On Tuesday, Rep. Mark Takano introduced the Protections and Regulations for Our Students Act, or the PRO Students Act, to hold for-profit institutions accountable and establish stronger protections for students.
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