News on Gainful Employment

From the Wall Street Journal:

The DOE, in negotiations that started late last year, wants to impose regulations on the for-profits to temper the argument that the institutions charge too much tuition without producing quality educations and by forcing them to have certain levels of students in "gainful employment" positions.

The draft, apparently sent from the DOE to the Office of Management and Budget for review, isn't a public document but analysts at Credit Suisse and Signal Hill reported it included an exemption for institutions with a 50% completion rate and, of those who finished, 70% job-placement rate. That would reintroduce an exemption that had appeared in earlier drafts before being cut, the analysts said, and lower the completion rate from the previous 70% threshold.