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Organizations Unite to Call for a Strong Gainful Employment Rule

Wednesday, May 28, 2014

Today, the Center for Responsible Lending joins an extensive group of education, student, civil rights, consumer, veterans, and labor groups in calling for strong for-profit college regulations.

Yesterday was the last day to file comments on regulation proposed by the Department of Education, called the "gainful employment rule." The gainful employment rule, proposed in March of this year, aims to create standards for trade, career, and for-profit institutions.

"Far too many students enroll in for-profit institutions because of high-pressure and deceptive sales tactics, rather than because the school gives them a genuine shot at a college education that can lead to lucrative job and employment prospects," said Maura Dundon, senior policy counsel at CRL. "They leave riddled with debt – but without the necessary skills or education to find a way to repay their loans. And as low-income students and students of color are disproportionately represented in for-profit schools, they're disproportionately affected."

"The Department of Education's rulemaking provides an opportunity to measurably improve the outcomes of students attending these for-profit institutions," Dundon continued. "With thoughtful and well-crafted regulation, we can ensure that students will emerge from these schools with a promising financial future."

In addition to the coalition, CRL filed its own comment highlighting the consumer protection concerns arising from saddling students with debt to attend low-quality education programs. Over 30,000 individuals also filed comments to call for a stronger gainful employment rule. More information, including the text of the comment and a list of coalition members, in included below.

The coalition comment:

CRL's comment letter:

The coalition:
* American Federation of Teachers (AFT)
* Center for Law and Social Policy (CLASP)
* Center for Public Interest Law
* Center for Responsible Lending
* Children's Advocacy Institute
* Consumer Action
* Consumer Federation of California
* Consumers Union
* Council for Opportunity in Education (COE)
* Covenant House
* Crittenton Women's Union
* East Bay Community Law Center
* Initiative to Protect Student Veterans
* League of United Latin American Citizens (LULAC)
* Mississippi Center for Justice
* Nat'l Assoc. for Black Veterans Inc.
* National Association for College Admission Counseling (NACAC)
* National Consumers League
* National Women Veterans Association of America
* New Economy Project (formerly NEDAP)
* Paralyzed Vets of America
* Public Advocates Inc.
* Public Citizen
* Public Counsel
* Public Law Center
* Rebuild the Dream
* The Education Trust
* Veteran Student Loan Relief Fund
* Veterans Education Success
* VetJobs
* VetsFirst, a program of United Spinal Association
* Woodstock Institute
* Young Invincibles

Contact: Catherine An, 202-349-1878,