Gainful Employment Guidelines for Certificate Programs

The U.S. Department of Education (DOE) defines a “new” Gainful Employment (GE) program as the following:

• A program with a Classification of Instructional Programs (CIP) code different from any other program offered by the institution; or
• A program that has the same CIP code as another program offered by the institution but leads to a different certificate; or
• A program that the institution’s accrediting agency determines to be a new educational program.

Effective with new programs that start October 1, 2011 or later, Georgia State must send notice of a new program to the DOE at least 90 days before the first day of class. The notice must include "sufficient information to demonstrate that the program meets the requirements for an eligible program. In addition, the institution must provide information to support its determination of the need for the program.” At a minimum:

• Describe in the notice how the institution determined the need for the program and how the program was designed to meet local market needs, and for an online program -- regional or national market needs. This description must contain any wage analysis the institution may have performed, including any consideration of Bureau of Labor Statistics data related to the program; and
• Describe in the notice how the program was reviewed or approved by, or developed in conjunction with, business advisory committees, program integrity boards, public or private oversight or regulatory agencies, and businesses that would likely employ graduates of the program; and
• Submit documentation that the program has been approved by its accrediting agency or is otherwise included in the institution's accreditation by its accrediting agency; and
• Provide the date of the first day of class of the new program.

The notice is submitted through the DOE’s E-App web process with supporting documentation by mail. Institutions may begin offering Title IV aid for the program unless notified by DOE at least 30 days prior to the first day of classes that the program will require further approval for Title IV eligibility, at which time another review kicks in. If ultimately the approval is not granted, Title IV funds disbursed must be repaid to ED.

Beginning with data submitted Fall 2012, all GE programs will be reviewed utilizing three metrics to determine whether a program leads to gainful employment in a recognized occupation (all metrics relate to loan/debt/income information):

• An annual loan repayment rate (must be 35% or more); or
• A ratio that measures debt in relation to discretionary income (must be 30% or less); or
• A ratio that measures debt in relation to annual earnings (12% or less).

Failure to meet any one of the three minimums above will require a program to be scrutinized further, which will entail explanations from the institution for a program failing three metrics, additional data to be supplied, and further review.

Click here for the university process for proposing a new certificate program.