Like ObamaCare, proposed 'gainful employment' regulations will be a geyser of unintended consequences.
On November 20, 2013, the Wall Street Journal ran an op-ed penned by APSCU Board Member Jeffrey Leeds and Former U.S. Senator and Governor of Nebraska Bob Kerrey. Below is an excerpt from the opinion piece.
Virtually all middle-class jobs now require postsecondary skills and credentials. Yet as many middle- and lower-income families and students adjust to the reality that college has become a necessity rather than a luxury, the luxury price tag that college commands is less and less affordable. Many students need to take on large amounts of debt, and these loans often are a real burden, particularly in a troubled economy with too few well-paying jobs.In his desire to make college more affordable, Secretary of Education Arne Duncan this month proposed 73 pages of so-called Gainful Employment rules that no doubt will sound good when applause lines are written. The regulations basically propose to cut off federal student aid to certain colleges whose former students don't enjoy "gainful employment," as determined by the department and measured by factors such as their loan-repayment rate. In fact, the regulations are a terrible idea.
Read the full op-ed on the Wall Street Journal.