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November 01, 2010 10:00 AM The Department’s Most Important Rule

By Daniel Luzer

Last week the Department of Education’s released almost all of its new rules for-profit colleges.

The rules, which do things like prohibit incentive compensation for recruiters and create a federal definition of a college course credit, were released without fanfare, however, because everyone’s still waiting on the other rule, the one about debt levels and for-profit schools. According to an article by Tamar Lewin in the New York Times:

The one that remains is the “gainful employment” regulation that would cut off federal student aid to programs whose graduates borrow too much and earn too little to repay their debts. The department will hold hearings next week on the topic, and will meet with interested parties to discuss that regulation, which will be finalized next year, and go into effect in 2012.

The Department’s hearings will address the comments and proposals that many institutions and the public have submitted to the Department in the last several months.

I plan to attend one of the public meetings on gainful employment tomorrow. Let’s see what people have to say.

Daniel Luzer is the news editor at Governing Magazine and former web editor of the Washington Monthly. Find him on Twitter: @Daniel_Luzer