Here’s why the Education Department’s proposed financial transparency website has higher ed worried

Higher Ed Dive

Lilah Burke

July 5, 2023

The U.S. Department of Education’s proposed gainful employment regulations have the potential to significantly change the higher education landscape. Career education programs that leave graduates with poor earnings or unmanageable debt would risk losing access to federal financial aid under the new rules.

But those requirements would only apply to certificate programs and programs at for-profit colleges. The department has proposed other, more wide-ranging regulations to apply to nearly all college programs.

One such proposal was a financial transparency website for students. The site would have information on every higher education program, with statistics on debt burdens, graduate earnings, and tuition and fee costs. All institutions would be required to give students information on how to access the site.

For programs with high debt-to-earnings burdens, prospective students will need to attest that they’ve seen the data before they can access federal financial aid.

These proposals are unpopular with industry representatives and lobbyists.

“It’s hard to overstate the concern about the potential cost and burden of implementation,” said David Baime, senior vice president for government relations at the American Association of Community Colleges.

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