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GAO-15-228R 1 (2014-11-17)

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cIAO U.S. GOVERNMENT ACCOUNTABILITY OFFICE
441 G St. N.W.
Washington, DC 20548


B-326397


November 17, 2014

The Honorable Tom Harkin
Chairman
The Honorable Lamar Alexander
Ranking Member
Committee on Health, Education, Labor, and Pensions
United States Senate

The Honorable John Kline
Chairman
The Honorable George Miller
Ranking Member
Committee on Education and the Workforce
House of Representatives

Subject: Department of Education: Program Integrity: Gainful Employment

Pursuant to section 801 (a)(2)(A) of title 5, United States Code, this is our report on a major rule
promulgated by the Department of Education (Education) entitled Program Integrity: Gainful
Employment (RIN: 1840-AD15). We received the rule on October 31, 2014. It was published
in the Federal Register as final regulations on October 31, 2014, with an effective date of July 1,
2015. 79 Fed. Reg. 64,890.

The final rule establishes measures for determining 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 Higher Education Act of 1965, as amended (HEA).
Education intends this rule to address growing concerns about educational programs that, as a
condition of eligibility for title IV, HEA program funds, are required by statute to provide training
that prepares students for gainful employment in a recognized occupation (GE programs), but
instead are leaving students with unaffordable levels of loan debt in relation to their earnings, or
leading to default. Specifically, this rule establishes (1) an accountability framework for GE
programs that defines what it means to prepare students for gainful employment in a recognized
occupation by establishing measures by which Education will evaluate whether a GE program
remains eligible for title IV, HEA program funds, and (2) a transparency framework that will
increase the quality and availability of information about the outcomes of students enrolled in
GE programs.

Enclosed is our assessment of Education's compliance with the procedural steps required by
section 801(a)(1)(B)(i) through (iv) of title 5 with respect to the rule. Other than the Unfunded
Mandate Act as discussed in the enclosure, our review of the procedural steps taken indicates
that Education complied with the applicable requirements.


GAO-15-228R

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