Gainful EmploymentGainful EmploymentMSFAALansing, MIFebruary 1, 2012
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Gainful EmploymentGainful Employment
The Law - HEAThe Law - HEA An educational program is Title IV
eligible only if the program: If offered by a public or non-profit
institution, leads to a degree; or If offered by any institution, “leads to gainful employment in a recognized occupation”
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What is a GE Program?What is a GE Program? At proprietary institutions all programs
are GE Programs except for - Preparatory coursework necessary for
enrollment in an eligible program Programs leading to a bachelor’s
degree in liberal arts offered since January 2009 that have been regionally accredited since 2007
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What is a GE Program?What is a GE Program?
At public institutions and not-for-profit institutions all programs are GE Programs, except for - Programs that lead to a degree Programs of at least two years in
length that are designed to be fully transferable to a bachelor’s degree program and do not lead to a credential awarded by the institution
Preparatory coursework necessary for enrollment in an eligible program
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What is a GE Program?What is a GE Program?
At all institutions, GE Programs do not include –
Teacher certification coursework that does not lead to a certificate awarded by the institution Collection of classes required by state, but
not leading to an institutional credentialIf the institution awards a
certificate/diploma for teacher certification coursework, it is a GE program.
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GE Program IdentifiersGE Program Identifiers
A Gainful Employment program is identified by the: 6-digit OPEID of the institution
offering the program (8-digits for reporting)
6-digit CIP Code (Classification of Instructional Program) assigned to the program by the institution
2-digit Credential Level
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GE Program ID NumberGE Program ID Number
Undergraduate Certificate in
Ornamental
Horticulture at Faber College
00100201060301 6 Digit OPE ID # CIP Code Credential Level
Credential LevelsCredential Levels
01 = Undergraduate certificate (or
diploma programs)
02 = Associate’s degree
03 = Bachelor’s degree 04 = Post baccalaureate certificate
(includes post-graduate certificate programs)
05 = Master’s degree
06 = Doctoral degree
07 = First-professional degree
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Disclosure InformationDisclosure Information
Disclosure Information on Program’s website home page - Must be simple and meaningful Must contain direct links from any
other webpage with general, academic or admission information about the program
Must be in an open format that can be retrieved, downloaded, indexed, and searched by commonly used web search applications
Disclosure InformationDisclosure Information
Disclose for each GE Program: Occupations (by name and SOC code)
that program prepares students to enter Links to occupational profiles on O*NET
Program costs – Tuition and fees Room and board Books and supplies May include other costs
Disclosure InformationDisclosure Information
Disclose for each GE Program: On-time completion rate - Denominator - Number of students
who completed program during most recently completed award year for which information is available
Numerator - Number of students who completed within normal time, as published by institution (Not 150% of normal time).
Disclosure InformationDisclosure Information
Disclose for each GE Program: Job placement rates for students
completing the program Use formula that the institutional
accreditor, program accreditor, or the state requires
Must be disclosed on a program basis, even if formula is for institutional level placement rates
Disclosure InformationDisclosure Information
Disclose for each GE Program: Median loan debt incurred by
students who complete the programTitle IV loan debt (FFEL and Direct Loan only) – Amount borrowed.
Private educational loan debt – Amount borrowed
Institutional finance plansAmount owed
Annual ReportingAnnual Reporting
Multiple reporting methodsBatch using SAIG mailbox
◦Fixed width format◦Comma separated value (CSV)
Online via NSLDS◦Direct online entry
Under Enroll tab, GE List, Gainful Employment Add
◦NSLDS GE Submittal Template Download at fsadownload.ed.gov Allows upload of 50 records at one time
Annual ReportingAnnual Reporting
Institution must report information on students who were enrolled in a GE Program for each award year -
Information includes: Student identifying information Program identifying information Amounts from private education loans
and from institutional financing plans Enrollment information Tuition and Fees (Optional)
Annual ReportingAnnual Reporting
Student identifiers For each student who enrolled in a
GE Program during the award year Social Security Number First, middle and last name Date of birth
Use student’s Social Security Administration information
Annual ReportingAnnual Reporting
Program Information For each student enrolled in a GE
Program Institutions OPEID (8 digit) where
student attended Name of program as established by
institution Classification of Instructional
Program (CIP) code of educational program
Credential Level
Annual ReportingAnnual Reporting
Private education loan information Defined in 12 CFR 226.46(b)(5) by the
Federal Reserve Board Total amount of non-Title IV loan
received to pay costs associated with attendance in the GE Program Examples – loans from financial
institutions, credit unions, states and other localities, guaranty agencies, and postsecondary educational institutions
Annual Reporting Annual Reporting
Institutional Financing Plan information Includes – Loans Extensions of credit Payment plans or Other financing mechanisms
That would otherwise not be considered a private education loan but that results in a debt obligation that a student must pay to an institution after leaving the program
GE MetricsGE Metrics
Two metrics established via regulation Repayment Rate
A percentage of the loan amounts that a GE Program’s former students are repaying
Debt-to-Earnings Ratios Annual Income RatioDiscretionary Income RatioFor the GE Program’s completers, the
average educational loan annual repayment amount as a proportion of the average borrowers’ annual income.
Repayment RateRepayment Rate Repayment Rate is a percentage of
the Title IV loan amounts that a GE Program’s former students are repaying (weighted for loan balance)
ED calculates a GE Program’s Repayment Rate using the program’s former students whose Title IV loans entered repayment during the applicable cohort period (e.g., 2YP)
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Performance RequirementsPerformance Requirements
GE Program considered to lead to gainful
Employment if it has-• Repayment Rate of at least 35%
OR • Annual loan payment under the
debt-to-earnings ratios of 12% or less of annual earnings OR
• Annual loan payment of 30% or less of discretionary income
Cohort Period UsedCohort Period Used“2YP”
◦ two year period consisting of the third and fourth federal fiscal years preceding the federal fiscal year for which the Repayment Rate calculation is performed.
Informational rates to be issued in April 2012 ◦ For the most recently completed federal fiscal year
of 2011, included the program’s former students who entered repayment on FFEL or Direct Loan Program loans during fiscal years 2007 and 2008. That is between October 1, 2006 and September 30, 2008. It tracks repayment activity on these loans during the fiscal year 2011, between October 1, 2010 and September 30, 2011.
Repayment RateRepayment Rate
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Loan repayment rate for a program calculated annually using the following ratio:
OOPB = Original Outstanding Principal Balance
LPF = Loans Paid in Full PML = Payments-Made Loans
OOPB of LPF plus OOPB of PML
OOPB
Repayment RateRepayment Rate
A loan is successfully being repaid if: Its balance is reduced by at least $1.00 over
the course of the year or paid in full; It is on track to being forgiven due to public
service employment; Borrower is making payments under an
interest‐only or income‐based repayment plan, but limited to no more than 3% of the OOPB; or
For post-baccalaureate programs, is a consolidation loan and all interest accrued over the course of the year has been paid.
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Repayment RateRepayment Rate
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ExampleFormer Students OOPBStudent A $ 2,000Student B 3,000Student C 5,000Student D 10,000
Total OOPB $20,000 for 2YP
Only Student D successfully paying on loan
Repayment Rate = $10,000 / $20,000 = 50%
Debt-to-Earnings RatioDebt-to-Earnings RatioAnnual IncomeAnnual Income
Calculated annual loan payment based on median loan debt
Higher of the mean or median annual earnings
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Debt-to-Earnings RatioDebt-to-Earnings RatioDiscretionary IncomeDiscretionary Income
Calculated annual loan payment based on median loan debt
Higher of the mean or median annual earnings less 150% of HHS Poverty
Guidelines for single person
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Debt to Earnings RatiosDebt to Earnings Ratios
Median Loan Debt is the lesser of total tuition and fees assessed the student
for enrollment in all programs ORsum of -
◦ total FFEL and Direct Loan Program loans owed for attendance in the gainful employment program, as reflected in NSLDS
◦private education loans, as reported by the institution
◦debt obligations arising from institutional financing plans, as reported by the institution
Debt-to-Earnings Ratios Debt-to-Earnings Ratios
SSA will provide the median and mean earnings of the GE Program’s completers
ED will use the higher of the two averages
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Debt-to-Earnings RatiosDebt-to-Earnings Ratios
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Exclude students -- With one or more loans in a
military-related deferment status With loans discharged, or
pending discharge, for death or total and permanent disability
Enrolled in Title IV eligible program
Debt-to-EarningsDebt-to-Earnings
Annual Loan Payment— The program's completers’ median loan debt
–Amortized at 6.8% over –
10 years for a certificate, associate degree, and post-baccalaureate program
15 years for a baccalaureate or master’s program
20 years for a doctoral and first professional degree program
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Performance RequirementsPerformance Requirements
Upon one year’s failure, institution must provide warnings to students and prospective students that provide – Notice of the program’s failure and the
amount by which the program failed Any plans the institution has for
improving the program Must establish a three‐day waiting
period after the warnings are provided before students can enroll
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Performance RequirementsPerformance Requirements
Upon failing two years out of three, institution must, in addition to the one-year warnings, also tell students and prospective students that — Their debts may be unaffordable The program may lose Title IV
eligibility What transfer options exist
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Performance RequirementsPerformance Requirements
Upon being a failing program for three out of four years, the educational program loses eligibility for Federal student aid
Initial targeting of the worst programs by capping loss of Title IV eligibility for FY 2014 rates only at 5 percent each of public, nonprofit, and for-profit programs
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To Add GE ProgramTo Add GE ProgramInstitutions must notify ED at least 90 days
before the first day of class when adding a new educational program that leads to gainful employment in a recognized occupation (GE Program) If the first day of class is on or after July
1, 2011 and before October 1, 2011, notification was due by July 1, 2011
If the first day of class is on or after October 1, 2011, institutions must provide notification to the Department at least 90 days prior to the first day of class
To Add GE ProgramTo Add GE ProgramInstitution’s notification must include -
An electronic E-App with GE Program details
Accrediting agency approval State approval Notice of Intent to Offer an Educational
Program;and Section L of the E-App containing
original signature of the appropriate official
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Notice Of Intent To Offer GE Notice Of Intent To Offer GE ProgramProgramTo ensure Notice of Intent is complete please:
◦Describe the process used for Determining the need for the program, and Developing the program content
◦Describe the process used to evaluate if the resulting content is appropriate to meet the need
◦Clearly identify the external parties involved in the development, review, or approval of the program, what their review disclosed, and actions taken in response
Notice Of Intent To Offer GE Notice Of Intent To Offer GE ProgramProgram If program is currently taught at the
institution it is ok to mention actual placement rates
Focus on benefit to students/employers – make a clear connection between the program, the job it prepares the student for, and the local, regional, or national market need for employees in that job
Notice Of Intent To Offer GE Notice Of Intent To Offer GE ProgramProgram Institution’s notice of intent must include:
How institution determined need for the program How the program was designed to meet local market
needs If an online program, how designed to meet regional
or national market needs Contain any wage analysis performed How program was reviewed/approved/developed
with business advisory committees, program integrity boards, public/private oversight agencies, and any businesses likely to employ graduates
Demonstrate approved by, or included in, school accreditation
Provide the date of the first day of class
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Approval RequiredApproval Required
If the institution did not provide the required notification timely, it must wait for Departmental approval before disbursing funds to students enrolled in the new GE Program Example - for programs beginning
between July 1, 2011 and October 1, 2011 must have provided new GE notifications by July 1, 2011
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Approval RequiredApproval RequiredApproval is also required if - The institution is provisionally certified The institution is adding a Direct
Assessment Program The institution is adding a
Comprehensive Transition and Postsecondary (CTP) Program
or The Department advises the institution
that it must wait for approval
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Jamie A. MaloneTraining OfficerU.S. Department of [email protected]
My supervisor is:Jo Ann BorelTitle IV Training [email protected]
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