The U.S. Department of Education has proposed a new rule that could cut off access to federal loans for degree and certificate programs with low salary outcomes. In North Carolina, 53 programs across half of the state’s community colleges could be impacted, including teacher education, cosmetology, and health services.

Local Impact

According to Brian Merritt, Chief Academic Officer at the North Carolina Community Colleges System, the proposed rule may have minimal impact on the state’s community colleges due to their affordability. However, some programs, such as early childhood education and human services, may not meet the new earnings requirements.

The proposed rule is intended to hold colleges and universities accountable for providing students with a worthwhile return on investment. Institutions that fail to meet the earnings test may lose access to federal loans and, in some cases, Pell grants.

Background

The proposed rule stems from the former President Barack Obama-era Gainful Employment Rule, which aimed to increase accountability for vocational schools and for-profit institutions. The new rule is seen as a more gentle approach, with some critics arguing that it does not go far enough in addressing predatory programs.

Jeremy Bauer-Wolf, investigations manager at New America, a think tank focusing on education, security, and democracy issues, stated that the proposed rule is a good first step but could have a detrimental effect on low-income students. He suggested that the Education Department could go further in ensuring that federal dollars are being spent wisely.

Original reporting: Carolina Public Press — read the source article.