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Shoptalk 601, April 26, 2011

Industry Update

ED provides guidance on gainful employment and state authorization rules

On April 20, 2011, ED issued Dear Colleague Letters (DCL) that provide clarification on two Program Integrity final rule topics: gainful employment (DCL GEN-11-10) and state authorization (DCL GEN-11-11). Below are summary points that highlight important elements in each of the DCLs. TG will provide detailed articles about these DCLs in a subsequent edition of Shoptalk to help schools better understand the guidance. In the meantime, schools are encouraged to review both letters to gain additional insight about these issues, which are effective July 1, 2011.

Summary points for DCL GEN-11-10: gainful employment (GE)

  • Provides detailed information by specific school types and educational programs to help a school determine if its programs are subject to the GE rules. It is expected that the vast majority of schools will have one or more educational programs that are subject to these rules.
  • Includes a summary of the reporting requirements associated with the new rules and identifies which students must be reported.
  • Announces the process and technology that will be used to submit GE data to ED.
  • Summarizes the new disclosure requirements and specifies that schools have a responsibility to meet these requirements, no later than July 1, 2011, using their own disclosure forms until ED releases a standardized form.
  • Indicates that ED will create a Web-application that a school will use in the future to disclose information about the educational programs that are subject to the GE rules.
  • Clarifies the effective date and timelines for notifying ED if a school adds new or additional programs that are subject to the GE rules.

Summary points for DCL GEN-11-11: state authorization

  • Specifies that the guidance provided pertains to distance education programs.
  • Acknowledges the challenges that schools have faced in obtaining state authorization for distance education programs.
  • Clarifies enforcement of the state authorization provisions.
  • States that ED will not initiate action to establish repayment liabilities or limit student eligibility before July 1, 2014, as long as a school is making a "good faith effort" to comply with the provisions.
  • Emphasizes ED's commitment to work with industry parties to develop a comprehensive directory that outlines each state's specific requirements that a school must meet to provide distance education programs within that state.
  • Indicates ED's interest to collaborate with the community to develop model agreements, common applications, or other methods that help promote compliance with the new rules.

To learn more
For more information on the Program Integrity final rules and to obtain these and other Dear Colleague Letters, visit TG's Program Integrity Final Rules webpage. For questions, please contact TG's Customer Assistance team at (800) 845-6267, or send an email message to cust.assist@tgslc.org.

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Closed school corner

The following table provides a list of newly reported school closures and corrections from the Postsecondary Educational Participants System (PEPS) and from the April 2011 Closed School Monthly Report supplied by ED. Schools listed are those with which TG has done business or to which TG has otherwise provided services.

Newly reported closures
School ID
Closure Date
ED's Official
Closure Date
02617501 Everest College-Fife
4905 Pacific Hwy., East Ste. 3A
Fife, WA 98424-2649
N/A 01/31/2011

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