"Under the so-called Do No Harm test, a program would lose access to federal loans if its average graduate doesn't earn more than someone with a high school diploma for two out of three consecutive years. And while students enrolled in undergraduate certificate programs only make up about 10 percent of all those receiving federal aid, they account for about half of those who attend programs projected to fail the earnings test, according to research from American University's Postsecondary Education & Economics Research Center."
"For now, a different rule, known as gainful employment, holds certificate programs with a poor return on investment accountable using a similar earnings test and a metric related to a student's debt. But unlike Do No Harm, the Biden-era gainful-employment rule only applies to certificate programs and for-profit colleges. According to the Federal Register rule-making notice, the Department of Education and an advisory committee are set to both iron out the details of Do No Harm and rehash the gainful-employment rule during a months-long process."
Starting next July, federal student loan access for degree programs will depend on graduate earnings under the Do No Harm earnings test. Under the test, a program loses access if its average graduate does not earn more than someone with a high school diploma for two of three consecutive years. Undergraduate certificate programs were excluded from the law's earnings test despite representing about half of programs projected to fail it while constituting roughly 10 percent of federal aid recipients. The Biden-era gainful-employment rule still covers certificates and for-profit institutions, and negotiated rule making will shape final details.
Read at Inside Higher Ed | Higher Education News, Events and Jobs
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