Press Release

FOR IMMEDIATE RELEASE
06/02/2011

Contact:
Katie Broendel, broendelk@aauw.org
202/785-7761

Lisa Goodnight, goodnightl@aauw.org
202/785-7738

AAUW Supports New Gainful Employment Rule for Career-Education Programs
U.S. Department of Education Releases Modest Regulations Protecting Students, Taxpayers

WASHINGTON — The American Association of University Women (AAUW) is glad to see the U.S. Department of Education exercise its authority to issue regulations defining gainful employment. Though they are regrettably weakened from their proposed form, the regulations do take a necessary first step. Students in the postsecondary career education programs that will be affected by these regulations have been burdened with overwhelming debt for too long. Now, thanks to this new rule, those programs will begin to be held accountable not only to students but also to the taxpayers who fund federal financial aid.

This final rule will benefit women, minority, low-income, and veteran students, in particular. Together, these groups constitute a disproportionately large number of students at for-profit schools, where students accrue almost double the median debt compared with their peers at nonprofit institutions, according to the Department of Education. And since women are more likely than men to borrow to attend school and make less on average than their male peers after graduation, their loan burdens are even more difficult to overcome.

"These new regulations have the potential to help students find some relief from the well-documented and disturbing practices at certain postsecondary career education programs," said AAUW Executive Director Linda D. Hallman, CAE. "As a veteran myself, I'm glad to see some additional accountability — and I urge strong, proactive enforcement of these regulations.

"I also encourage all parties to sincerely assist veterans in taking appropriate advantage of their hard-earned G.I. Bill education benefits," Hallman added. "AAUW supports the Department of Education as they take this first step toward holding these programs to both their words and deeds, not just promising but delivering a good education that brings with it real career options."

"These regulations are intended to be a sort of consumer protection plan for students and taxpayers. While a modest first step, AAUW hopes the new rules and continued scrutiny will begin to weed out the worst of the worst offenders — those programs that take advantage of students chasing the dream of a college education, only to be left with massive debt and few career prospects," said Lisa Maatz, AAUW’s director of public policy and government relations. "AAUW strongly hopes that the Department of Education’s final rule, along with the solid work of state attorneys general investigating these manipulative practices, will compel bad actors to start changing their ways."

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The American Association of University Women (AAUW) advances equity for women and girls through advocacy, education, philanthropy, and research. Since 1881, AAUW has been one of the nation’s leading voices promoting education and equity for women and girls. AAUW has a nationwide network of more than 100,000 members and donors, 1,000 branches, and 600 college/university institutional partners. Since AAUW's founding 130 years ago, members have examined and taken positions on the fundamental issues of the day — educational, social, economic, and political. AAUW's commitment to educational equity is reflected in its public policy advocacy, community programs, leadership development, conventions and conferences, national partnerships, and international connections.