As colleges across the United States grapple with the economic fallout of the COVID-19 pandemic, many are now asking Congress to delay the deadline for complying with gainful employment regulations.
The gainful employment regulations, which were implemented by the Obama administration in 2015, require colleges to demonstrate that their graduates earn enough money to pay off their student loan debt. If a program consistently fails to meet these benchmarks, it could lose access to federal financial aid, a critical source of revenue for many institutions.
However, with the economic downturn caused by the pandemic, many colleges are facing unprecedented challenges in meeting these requirements. High levels of unemployment and a struggling job market have made it increasingly difficult for graduates to secure well-paying jobs, making it harder for colleges to meet the gainful employment standards.
In a letter to Congress, a coalition of colleges and universities argued that the current economic conditions have made it all but impossible for them to comply with the gainful employment regulations. They have called for a delay in the deadline, which is currently set for July 1, 2021, to give institutions more time to adjust to the new realities of the post-pandemic world.
The colleges also pointed out that many of the job placement services and other support systems they rely on to help graduates find employment have been severely disrupted by the pandemic. This has further complicated their ability to meet the gainful employment requirements.
The coalition’s letter has received support from some members of Congress, who have also expressed concern about the impact of the pandemic on higher education. However, it remains to be seen whether lawmakers will act to delay the gainful employment deadline.
For colleges and universities, the stakes are high. Access to federal financial aid is crucial for many institutions, and losing it could have a devastating impact on their ability to survive in an already challenging economic environment.
As the debate over the gainful employment regulations continues, it is clear that the economic fallout from the pandemic has only added to the challenges facing higher education institutions. Colleges are now calling on Congress to provide relief in the form of a deadline extension, in order to give them the time and support they need to weather this unprecedented storm.
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