Just days after the Department of Education released Gainful Employment Informational Debt Measures and Gainful Employment Informational Loan Medians to institutions, GE is Dead!
On Saturday, United States District Judge Rudolph Contreras struck down Gainful Employment rules in a suit that the Association of Private Colleges and Universities brought against the Department of Education and Secretary Arne Duncan to challenge Gainful Employment rules.
Check out the full text of the legal decision here:
In a message addressed to the Financial Aid Community, Federal Student Aid announced the release dates of the FY 2010 2-Year and FY 2009 3-Year Draft Cohort Default Rates. All schools, both domestic and foreign, enrolled in the Electronic Cohort Default Rate (eCDR) process will receive their FY 2010 2-Year and the FY 2009 3-Year Draft Cohort Default Rate and accompanying documentation via their Student Aid Internet Gateway (SAIG) mailbox.This year, the reports will be delivered separately and several days apart as follows:
FY 2010 2-Year Draft Cohort Default Rates – On February 27, 2012
FY 2009 3-Year Draft Cohort Default Rates – On March 5, 2012
Although sanctions from the 3 year Cohort Default Rate will not be imposed until 2014, many schools will review the student level data in the report to ensure the accuracy of the official Cohort Default Rate which will be published in September. In 2014, institutions that have three-year rates higher than 30 percent will face possible sanctions, including loss of eligibility to participate in Title IV programs. Trial rates project the following data by sector.
During the Draft Cohort Default Rate Review period,schools have 45 days to challenge/appeal the rates by submitting an Incorrect Data Challenge appeal to the data manager via the eCDR appeals process. A good idea since benefits as well as sanctions apply to cohort default rate thresholds.
FY 2010 2-Year Incorrect Data Challenges are due – April 12, 2012
FY 2009 3-Year Incorrect Data Challenges are due – April 19, 2012
For more information about Cohort Default Rates, check out the revised edition of the Cohort Default Rate Guide.