Gainful Employment Rule

Floor Speech

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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GE rule is years in the making, first introduced by the Obama administration, after years of deliberation, but it was rescinded under former Secretary Betsy DeVos.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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