06.21.23

Ranking Member Scott Sends Letter in Support of Biden Proposal to Protect Students, Taxpayers from Low-Quality Education Programs

WASHINGTON – Yesterday, Ranking Member Robert C. “Bobby” Scott (VA-03) commended the Biden administration for its proposed rule to hold career programs that receive federal financial aid accountable for ensuring their graduates can secure gainful employment after completing a degree.

“Two fundamental principles drive these proposed rules: protecting students and taxpayers and holding institutions accountable,” Ranking Member Scott wroteThe Department’s proposed rule makes great strides to protect students and taxpayers from low-quality programs and will improve the Department’s ability to oversee accountability of institutions of higher education.”

The proposed rule is the strongest initiative yet to address low-quality training programs that frequently leave graduates with crushing debt and no meaningful career prospects. The proposal would also increase transparency in higher education by requiring institutions to disclose what the likely out-of-pocket costs might be for students and their families before they decide to enroll.

The purpose of the Gainful Employment rule, first implemented under President Obama, is to hold career programs accountable to the promises they make to their students. Unfortunately, President Trump repealed the Obama-era rule, helping to sustain low-quality for-profit colleges at the expense of students and taxpayers. According to an analysis by the Department of Education, the Trump administration’s decision would cost taxpayers nearly $5 billion in federal financial aid on programs that might have otherwise closed.

In the letter, Ranking Member Scott urged the Department of Education to go even further to protect students and taxpayers, such as by standardizing the financial information institutions provide to students as well as targeting additional support toward under-resourced institutions and institutions with unique missions to serve students historically excluded from higher education.

Read the full text of the letter here.

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