[Congressional Record Volume 169, Number 104 (Wednesday, June 14, 2023)]
[Senate]
[Page S2094]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                        GAINFUL EMPLOYMENT RULE

  Mr. DURBIN. Mr. President, on another topic, last week, President 
Biden did something he has done only five times: He vetoed a resolution 
passed by Congress.
  And let me say: Thank goodness. The proposal he vetoed would have 
blocked the administration's student loan forgiveness program. This 
program will be a financial lifeline for millions of student borrowers 
across the country so that working Americans can start a business, buy 
a first home, or, simply, keep a roof over their heads. And there is 
one group of student borrowers in particular who are in desperate need 
of this financial relief: That is the hundreds of thousands of students 
who have been ripped off by for-profit colleges. Just listen to this: 
Even though for-profit colleges enroll only 8 percent of college 
students, they account for 30 percent of all Federal loan defaults.
  Thankfully, just a few weeks ago, the Biden administration took 
another crucial step to support these student borrowers. The Department 
of Education announced that it will reinstate what is known as the 
gainful employment rule--or the GE rule. This rule would create 
accountability standards for for-profit colleges to qualify for Federal 
student aid. If they want to receive taxpayer dollars--in the form of 
Federal student aid--then they need to meet their statutory obligation 
to prepare students for gainful employment.
  I don't think that is too much to ask. This GE rule is years in the 
making, first introduced by the Obama administration, after years of 
deliberation, but it was rescinded under former Secretary Betsy DeVos. 
As a result, executives of for-profit colleges have lined their pockets 
with taxpayer dollars, while students were left to fend for themselves.
  Let me tell you about one of these predatory for-profit schools: the 
American Intercontinental University. Five of its programs failed the 
GE rule--five--at one school, including a bachelor's degree in fashion 
and apparel design. The company claims it is one of their ``career-
focused degree programs . . . designed to provide students with the 
foundational skills required to apply their creative vision in the real 
world.''
  Sounds pretty good, doesn't it? Wrong. Because here is the reality: 
The total cost over 4 years is nearly $55,000. Seventy-four percent of 
students who attend this school borrow Federal student loans. And the 
median total debt is $31,000.
  Here is the biggest problem: The graduation rate is only 19 percent. 
And the students who do graduate are hardly any better off. According 
to the 2015 GE earnings data, the median annual earnings of a fashion 
and apparel design graduate were $18,896. So even if you earn your 
degree from this fraudulent program, you do not even have a chance to 
earn enough to pay off your loans. That is why it is so important that 
the Biden administration has proposed to reinstate the GE rule. And 
this new version will provide the strongest accountability and 
transparency framework to date.
  Under the proposed rule, for-profit colleges would have to prove that 
graduates make enough to pay back their loans. So what would happen to 
a school like American Intercontinental University if it does not 
improve its failing programs? Well, under the new GE rule, the company 
would lose access to Federal student aid for its failing programs. I am 
glad the Department of Education is holding the for-profit industry 
accountable for its lies and protecting students and taxpayers.

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