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The Secretary plans to amend regulations on institutional eligibility under the Higher Education Act of 1965, as amended (HEA), and the Student Assistance General Provisions, including the regulations governing whether certain postsecondary educational programs prepare students for gainful employment in a recognized occupation, and the conditions under which these educational programs remain eligible under the Federal Student Aid programs authorized under title IV of the HEA. 

Statement of Need: The Secretary initiated negotiated rulemaking to revise the gainful employment regulations published by the Department on October 31, 2014 (79 FR 64889).  The negotiated rulemaking committee did not reach consensus and the Department proposed new regulations to rescind the gainful employment regulations.

Summary of the Legal Basis: Section 492 of the HEA requires that, before publishing any proposed regulations to implement programs authorized under title IV of the HEA, the Secretary obtain public involvement in the development of the proposed regulations. After obtaining advice and recommendations from the public, the Secretary conducts negotiated rulemaking to develop the proposed regulations. Section 431 of the Department of Education Organization Act provides authority to the Secretary, in relevant part, to inform the public regarding federally supported education programs; and collect data and information on applicable programs for the purpose of obtaining objective measurements of the effectiveness of such programs in achieving the intended purposes of such programs. 20 U.S.C. 1231a.

Alternatives: These are identified through the negotiated rulemaking process and presented in the Notice of Proposed Rulemaking.

Anticipated Costs and Benefits: These are identified through the negotiated rulemaking process and presented in the Notice of Proposed Rulemaking.

Risks: These are identified through the negotiated rulemaking process and presented in the Notice of Proposed Rulemaking.