The "Gainful Employment Rule" enforces the Higher Education Act’s requirement that career education programs receiving federal student aid must “prepare students for gainful employment in a recognized occupation.” 34 CFR § 668.403

This common-sense requirement applies to educational programs at all types of colleges (public, nonprofit, and proprietary) and protects both students and taxpayers from waste, fraud, and abuse. Veterans express anger when they discover that the government knew that a career education program had a lousy record but allowed them to waste their time and GI Bill benefits enrolled in it. The Gainful Employment Rule requires schools to disclose basic information about program costs and outcomes and prevents funding for programs that consistently leave students with debts they cannot repay.