“Gainful Employment” Rules for Traditional Colleges?

The reform efforts relating to employment and students’ ability to pay back their loans may not end with for-profit schools. According to a piece in Inside Higher Ed:

Echoing warnings that some higher education officials themselves have made, Moody’s [Investors Service warned Thursday]… that the Education Department could seek to apply to nonprofit as well as for-profit colleges metrics that link graduates’ debt burdens to their salaries. “If regulators require all higher education institutions to meet new metrics based on allowable post-graduate debt and salary levels, student demand at some traditional colleges could suffer, causing weakened cash flow and revenues,” Moody’s writes.

The article is only available to Moody’s subscribers.

While information about the salary “payoff” of various colleges is of obvious interest to the American public, colleges are generally hostile to efforts to link college costs to salary information.

Daniel Luzer

Daniel Luzer is the news editor at Governing Magazine and former web editor of the Washington Monthly. Find him on Twitter: @Daniel_Luzer