US colleges seek extension for gainful employment report, delaying key financial aid and student outcomes data past Biden’s presidency

Colleges Plead for Yet Another Extension: Colleges and universities across the United States are calling on the Department of Education to extend the deadline for reporting requirements under President Biden’s gainful employment and financial value transparency rule. This marks the third such request in a year, with institutions now asking to move the January 15, 2025, deadline to July 2025. If granted, critical data on financial aid and student outcomes would remain undisclosed until well after Biden’s presidency, delaying the enforcement of regulations designed to hold career education programs accountable.

Looming Trump administration and the Department of Education

Adding to the uncertainty is the upcoming Trump administration, which has signaled its intention to shutter the U.S. Department of Education. If this plan materializes, it would mark a notable shift in federal education policy.
For decades, the department has been central to overseeing education programs, ensuring the disbursement of federal student aid, and implementing educational policies at the federal and state level. While critics see the department as bureaucratic, its supporters argue that dismantling it would create chaos in the management of billions in federal grants and loans that support millions of students.

Gainful Employment Rule: Accountability or just more red tape?

Finalized in 2023, the gainful employment rule aims to protect students from programs that saddle graduates with unaffordable debt and poor career prospects. It requires career-focused programs at for-profit colleges and nondegree programs in all sectors to demonstrate that graduates can repay their loans and earn more than the median salary of adults in their state without a college degree. Programs failing these metrics for two consecutive years could lose access to federal financial aid.
By 2026, students enrolling in non-compliant programs will be required to sign disclosures acknowledging the risks of high debt and low returns. Education Secretary Miguel Cardona described the rule as a means to empower families with “more data than ever before” about college costs, according to an Inside Higher Ed (IHE) report from September 2023.

Why do colleges want a delay?

Institutions argue they need more time to comply with the rule’s rigorous data collection and reporting requirements. Many colleges have not systematically tracked key metrics like the total cost of attendance or private loan disbursements. Administrative disruptions, including issues with the rollout of the Free Application for Federal Student Aid (FAFSA), have further strained college staff.
David Baime of the American Association of Community Colleges highlighted delays in receiving implementation guides and flawed documentation from the Department of Education. “The colleges are spending hundreds of hours of work just doing their best to come into compliance,” Baime told Times Higher Ed.
Additionally, Emmanuel Guillory from the American Council on Education (ACE) noted the practical implications of an incoming administration potentially undoing Biden’s policies. “It’s not about avoiding accountability but ensuring that institutions aren’t redoing work unnecessarily,” Guillory told IHE.

‘Not the first time’: A tale of repeated delays

Critics, however, see these extension requests as a familiar strategy to stall regulations. Rachel Fishman of the left-leaning think tank New America called it “a tale as old as time,” dismissing claims that colleges lack the resources to comply.
For the Biden administration, further delays could erode confidence in its higher education agenda. Undersecretary James Kvaal expressed frustration, stating to IHE, “It’s disappointing that some special interests want further delays that would only keep students in the dark.”
Should the extension be granted, the Department of Education may struggle to enforce the rule before a potential dismantling by the Trump administration. This could leave students vulnerable to exploitative programs and disrupt federal aid oversight.

What’s at stake for students and grants?

The gainful employment rule is intended to protect students by ensuring federal financial aid supports programs that lead to positive outcomes. Without timely enforcement, students may continue to enroll in high-cost programs that offer little return on investment. Furthermore, delays undermine transparency, leaving families without crucial information to make informed decisions.
With colleges arguing for more time and the Biden administration standing firm, the clock is ticking. Whether the rule survives the upcoming administration will determine not just its impact on students and colleges but the future of federal oversight in higher education.