Department of Education Releases Career Training Program Rule

Today, the Department of Education released its final rule designed to hold career training programs accountable for preparing their students for employment.

Under the rule, career training programs that fail to demonstrate that their programs are preparing students for “gainful employment” would risk losing their eligibility to participate in federal education grant and loan programs.  The rule applies to for-profit colleges that have come under fire over the past year for their recruiting practices – which often target low-income and minority students – and failing to educate students for “gainful employment,” leaving students with a mountain of student-loan debt (while the schools themselves make millions).

“While the rule does not include many important protections urged by civil rights, student, women’s, labor, and consumer organizations, it sends a strong message to many for-profit career education programs to start putting students first,” said Nancy Zirkin, executive vice president of The Leadership Conference on Civil and Human Rights. “Regulation is urgently needed to hold these institutions accountable given the rising tide of debt and default rates faced by students enrolled in for-profit programs – a majority of whom are women, minorities, low-income individuals, veterans and service members. For-profit colleges are a viable option for many of these students, but that doesn’t give these businesses the right to exploit those they serve.”

Civil and human rights groups have been concerned about the fact that some for-profit institutions are taking advantage of low-income, women, and minority students who often do not have other options for post-secondary education.  In February, a group of civil rights, education, labor, and consumer organizations, including The Leadership Conference, sent a letter to the Department of Education in support of the rule.

“Our nation’s future depends to a large degree on how well we educate the next generation. We will succeed only if we allow students a fair opportunity to obtain the skills and knowledge they need to fully participate in our economy and our society. The new ‘gainful employment’ rule will help ensure they get that chance,” said Zirkin.