Office of Postsecondary Education - U.S. Department of Education

Office of Postsecondary Education - U.S. Department of Education Office of Postsecondary Education - U.S. Department of Education

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66836 Federal Register / Vol. 75, No. 209 / Friday, October 29, 2010 / Rules and RegulationsWReier-Aviles on DSKGBLS3C1PROD with RULES2conveyed to prospective students. Topromote the goal of facilitating informedchoice, the disclosure must be simpleand meaningful.The Department intends to develop inthe future a disclosure form and will beseeking public comment about thedesign of the form through theinformation collection process underthe Paperwork Reduction Act of 1995(PRA). While the form will bedeveloped through that process, theregulations require institutions toprovide clear and prominent notice,delivered to students at appropriatetimes and in promotional materialsprior to enrollment. Until a form isdeveloped and approved under the PRAprocess, institutions must comply withthese disclosure requirementsindependently. In addition, we agreewith the comments that disclosuresalone are likely to be inadequate andhave proposed to establish programperformance standards in our NPRM onProgram Integrity—Gainful Employmentthat was published in the FederalRegister on July 26, 2010 (75 FR 43616).Changes: Section 668.6(b) has beenrevised to provide that an institutionmust prominently provide theinformation it is required to discloseabout a program in a simple andmeaningful manner on the home page ofits program Web site, and provideprominent and direct links to this pageon any other Web page containinggeneral, academic, or admissionsinformation about the program. Therevised provision also states that aninstitution must use the disclosure formdeveloped by the Secretary when itbecomes available and the disclosureinformation must be displayed on theinstitution’s Web site in an open formatthat can be retrieved, downloaded,indexed, and searched by commonlyuse Web search applications. An openformat is one that is platformindependent,is machine-readable, andis made available to the public withoutrestrictions that would impede the reuseof that information.Finally, § 668.6(b) has been revised toprovide that an institution must makethe information available in thepromotional materials conveyed toprospective students.Placement RatesComment: Many commenters objectedto using the placement rate calculationin § 668.8(g) arguing that it is overlyburdensome and administrativelycomplex. The commenters opined thattracking a student for 180 days aftergraduation for a period of 13 weeks wastoo long and believed that it would bevirtually impossible for the Departmentor any other auditor to affirm theaccuracy of the placement data becausethe tracking period represents nothingmore than a snap-shot of how manystudents were employed for 13 weeks atthe time the data was collected. Thecommenters asserted that if theDepartment requires placementinformation to be disclosed to students,the information that an institutioncurrently provides to its accreditingagency, which routinely assesses thatinformation, would be more accurate. Inaddition, the commenters wereconcerned about potential conflicts withthe misrepresentation provisions insubpart F of part 668 on the groundsthat any placement rate disclosed tostudents would be obsolete as soon asit was posted to an institution’s Website. Some of the same commentersobjected to the proposed alternative ofrelying on State-sponsored workforcedata systems arguing that there is noconsistency between the States thatmaintain employment outcome data,and that in many cases the datacollected fails to provide a full andaccurate depiction of the demand,growth, and earnings of keyoccupations.A number of commenters opposedusing the placement rate calculation in§ 668.8(g) arguing that it is a highlyrestrictive measure developed solely forextremely short programs offered by afew institutions. The commenters notedthat an institution is already requiredunder § 668.41(d)(5) to disclose anyplacement rates it calculates and that itwould be confusing to students todisclose any additional rates beyondthose that it is required to calculateunder accrediting agency or Staterequirements. Some of thesecommenters suggested that in caseswhere an institution is not required byits accrediting agency to calculateplacement rates, the institution shouldcalculate the rates using a methodologyfrom a national accrediting agency orthe State in which the institution isauthorized to operate. Under either theagency or State methodology, thecommenters requested flexibility indetermining the rates for degreeprograms because employmentopportunities for graduates of degreeprograms are much more diverse thanfor graduates of occupationally specifictraining programs.One commenter stated that itsinstitution’s mission of educatingworking adults is at odds with theconcept of placement rates—many ofthe institution’s students are alreadyemployed and enroll to enhance theircareers through further education. Inaddition, the commenter stated that itVerDate Mar2010 14:10 Oct 28, 2010 Jkt 223001 PO 00000 Frm 00006 Fmt 4701 Sfmt 4700 E:\FR\FM\29OCR2.SGM 29OCR2would be impractical to administer a jobplacement regime for students takingonline programs who reside throughoutthe world. The commenterrecommended that placement rates becalculated in accordance with aninstitution’s accrediting agency or Staterequirements, but that the proposeddisclosures should not apply wherethere are no agency or Staterequirements. As an alternative, thecommenter suggested that regionallyaccredited institutions, which are notrequired to track employment outcomes,conduct post graduation surveys askingprogram graduates if they are working intheir field. An affirmative responsewould count as a ‘‘placement’’ even ifthe graduate maintained the sameemployment he or she had whileattending the institution. Along thesame lines, another commentersuggested that the Department allow aninstitution that is not required by anoutside agency to calculate placementrates, to develop and implement amethod that best reflects the make-up ofits student body, including surveys,collecting employer documentation, orother methods.One commenter objected to using theplacement rate calculation intended forshort-term programs in § 668.8(g)because all of its programs were at orabove the baccalaureate level. While thecommenter stated that requiring publicdisclosure of relevant outcomes putspressure on an institution to ensure thatit is providing a good education to itsstudents, the commenter suggested thatunless an institution’s accreditingagency or State requires it to discloseplacement rates, the institution shouldonly disclose rates that it calculates onan annual basis for internal purposes orany employment or placementinformation it receives from surveyingits students. Another commenter madethe same suggestions and asked theDepartment to clarify that placementrates would only need to be updatedannually.Another commenter argued that theplacement rate methodology in§ 668.8(g) was never intended forgainful employment purposes and madeseveral recommendations including:(1) Excluding from the total number ofstudents who completed a programduring an award year, the students whoare unable to seek employment due toa medical condition, active militaryduty, international status, continuingeducation, incarceration, or death. Inaddition, an institution could excludethose graduates who certify they are notseeking employment or those that it isunable to locate. The commenterspecified the documentation an

Federal Register / Vol. 75, No. 209 / Friday, October 29, 2010 / Rules and Regulations66837WReier-Aviles on DSKGBLS3C1PROD with RULES2institution would have to obtain foreach of these exclusions.(2) Removing the requirement in§ 668.8(g)(1)(iii) that a student must beemployed, or have been employed, for13 weeks and allowing students to findemployment within 6 months from thelast graduation date in the award year.(3) Replacing the employercertification, income tax form, andSocial Security provisions in§ 668.8(g)(3) with other ways that aninstitution would verify that a studentobtained gainful employment.Several commenters suggested usingthe methodology developed by anational accrediting agency because theproposed method in § 668.8(g) does nottake into consideration circumstancesthat would prevent graduates fromseeking employment, such as healthissues, military deployment orcontinuing education, or practical issuesrelated to the employment ofinternational or foreign students.Several commenters stated it wouldbe difficult, if not impossible, for theseinstitutions to obtain the data needed tocalculate placement rates. Some of thesecommenters supported the use of Statesponsoredworkforce data systems, butcautioned that many communitycolleges would not be able to obtainsufficiently detailed placementinformation through data matches withthese systems to satisfy the proposedrequirements. Other commenters notedthat some States do not have workforcedata systems, so institutions in thoseStates would have to use the nonpreferred placement rate methodologyunder § 668.8(g). Many of thecommenters believed the requirement todocument employment on a case-bycasebasis under § 668.8(g)(2) would beoverly burdensome and labor intensive.Others opined that the placementprovisions are counterproductive,claiming that a substantial number ofcommunity colleges eschewedparticipating in programs under theWorkforce Investment Act because ofplacement rate requirements. On theother hand, another commentersupported the placement rate provisionsand recommended that all institutionsin a State participate in a workforce datasystem, if the State has one. Thecommenter asked the Department toclarify how the data obtained from aworkforce data system would be used tomeet the placement rate requirementsand the timeline for reporting thoserates. In addition, the commentersuggested revising the placement rateprovisions in § 668.8(g) to more closelyalign those provisions with practicesused by State data systems.One commenter stated that in order toreceive Federal funding under the CarlD. Perkins Career and TechnicalEducation Act, a program must receiveState approval that entails a review ofdocumentation requiring that theprogram be high demand, high wage orin an emerging field. As part of the Statereview, the institution providesdocumentation of potential placement.The commenter recommended that theDepartment waive the gainfulemployment provisions for allcertificate programs approved by theState under this review process.A commenter supported disclosingplacement rate data, but noted that theinstitution would only be able to reporton graduates who are employed in theState or continued their education. Theinstitution would not be able to provideoccupationally specific placement data,or data about graduates who findemployment outside the State, becausethe State’s labor data base only tracks (1)the type of business a graduate isemployed by, not the occupation of thegraduate, and (2) graduates who areemployed in the State.Several other commenters supportedthe proposed placement ratedisclosures, but believed that theprovisions in § 668.8(g) wereinadequate. The commenters madeseveral suggestions, including:(1) Expanding the category of studentswho complete a program (currently in§ 668.8(g)(1)(i)) to include students whoare eligible for a degree or certificate.The commenters stated they are awareof institutions that delay providing thedegree or certificate to students, whichomits these students from the placementrate calculation.(2) Specifying that the time standardsin § 668.8(g) (employment within 180days of completing a program andemployment for 13 weeks) also apply torates calculated from State workforcedata systems.(3) Specifying that employment mustbe paid. The commenters stated they areaware of institutions that have countedstudents in unpaid internships as beingemployed.(4) To be counted in the placementrate, providing that a student must findemployment in one of the SOC codesidentified for the program unless thestudent finds a job that pays more thanany of the identified SOC codes. Thecommenters believed that someinstitutions stretch the concept of a‘‘related’’ comparable job as currentlyprovided in § 668.8(g)(1)(ii). Forexample, an institution might includeany job at a hospital, including thelowest paying jobs, when the studentwas trained for a skilled job such as anVerDate Mar2010 14:10 Oct 28, 2010 Jkt 223001 PO 00000 Frm 00007 Fmt 4701 Sfmt 4700 E:\FR\FM\29OCR2.SGM 29OCR2x-ray technician. The higher earningsrecommendation would condition asuccessful placement but allow aninstitution to count a student employedin an unrelated SOC.(5) To address the situation where astudent cannot qualify for employmentuntil he or she passes a licensing orcertification examination, providing thatthe 180-day period during which thestudent would otherwise have to findemployment should start after theresults of the examination are available.(6) To be counted in the placementrate, specifying that a student mustwork for at least 32 hours per week. Thecommenters stated that they are awareof institutions that include as successfulplacements any student that works atany time during a week, even if it isonly for a few hours per week.(7) Specifying that institutions mustuse a State data system if it is availableto ensure accurate reporting.(8) If the institution chooses todemonstrate placement rates by salary,providing that documentation mustinclude signed copies of tax returns,W–4s or paystubs to document earnings.(9) To more thoroughly substantiateplacement rates, requiring the auditorwho performs the institution’scompliance audit under § 668.23 todirectly contact former students andemployers whose statements wereobtained by the institution.Discussion: We are persuaded by thecomments that using the methodologyin § 668.8(g) may not be the mostappropriate method for determining theplacement rate for the majority of theprograms that are subject to the gainfulemployment provisions. Moreover, inview of the varied suggestions for howthe rate should be calculated,documented, and verified, in early 2011we will begin the process for developingthe method to calculate placement ratesfor institutions through the NationalCenter for Education Statistics (NCES).These final regulations establish somereporting requirements using existingplacement data as explained below,with a transition in a later period forinstitutions to disclose placement ratesobtained from the NCES methodology.NCES will develop a placement ratemethodology and the processesnecessary for determining anddocumenting student employment andreporting placement data to theDepartment using the IntegratedPostsecondary Education Data System(IPEDS).NCES employs a collaborative processthat affords the public significantopportunities to participate in making,and commenting on, potential changesto IPEDS. Potential changes are

66836 Federal Register / Vol. 75, No. 209 / Friday, October 29, 2010 / Rules and RegulationsWReier-Aviles on DSKGBLS3C1PROD with RULES2conveyed to prospective students. Topromote the goal <strong>of</strong> facilitating informedchoice, the disclosure must be simpleand meaningful.The <strong>Department</strong> intends to develop inthe future a disclosure form and will beseeking public comment about thedesign <strong>of</strong> the form through theinformation collection process underthe Paperwork Reduction Act <strong>of</strong> 1995(PRA). While the form will bedeveloped through that process, theregulations require institutions toprovide clear and prominent notice,delivered to students at appropriatetimes and in promotional materialsprior to enrollment. Until a form isdeveloped and approved under the PRAprocess, institutions must comply withthese disclosure requirementsindependently. In addition, we agreewith the comments that disclosuresalone are likely to be inadequate andhave proposed to establish programperformance standards in our NPRM onProgram Integrity—Gainful Employmentthat was published in the FederalRegister on July 26, 2010 (75 FR 43616).Changes: Section 668.6(b) has beenrevised to provide that an institutionmust prominently provide theinformation it is required to discloseabout a program in a simple andmeaningful manner on the home page <strong>of</strong>its program Web site, and provideprominent and direct links to this pageon any other Web page containinggeneral, academic, or admissionsinformation about the program. Therevised provision also states that aninstitution must use the disclosure formdeveloped by the Secretary when itbecomes available and the disclosureinformation must be displayed on theinstitution’s Web site in an open formatthat can be retrieved, downloaded,indexed, and searched by commonlyuse Web search applications. An openformat is one that is platformindependent,is machine-readable, andis made available to the public withoutrestrictions that would impede the reuse<strong>of</strong> that information.Finally, § 668.6(b) has been revised toprovide that an institution must makethe information available in thepromotional materials conveyed toprospective students.Placement RatesComment: Many commenters objectedto using the placement rate calculationin § 668.8(g) arguing that it is overlyburdensome and administrativelycomplex. The commenters opined thattracking a student for 180 days aftergraduation for a period <strong>of</strong> 13 weeks wastoo long and believed that it would bevirtually impossible for the <strong>Department</strong>or any other auditor to affirm theaccuracy <strong>of</strong> the placement data becausethe tracking period represents nothingmore than a snap-shot <strong>of</strong> how manystudents were employed for 13 weeks atthe time the data was collected. Thecommenters asserted that if the<strong>Department</strong> requires placementinformation to be disclosed to students,the information that an institutioncurrently provides to its accreditingagency, which routinely assesses thatinformation, would be more accurate. Inaddition, the commenters wereconcerned about potential conflicts withthe misrepresentation provisions insubpart F <strong>of</strong> part 668 on the groundsthat any placement rate disclosed tostudents would be obsolete as soon asit was posted to an institution’s Website. Some <strong>of</strong> the same commentersobjected to the proposed alternative <strong>of</strong>relying on State-sponsored workforcedata systems arguing that there is noconsistency between the States thatmaintain employment outcome data,and that in many cases the datacollected fails to provide a full andaccurate depiction <strong>of</strong> the demand,growth, and earnings <strong>of</strong> keyoccupations.A number <strong>of</strong> commenters opposedusing the placement rate calculation in§ 668.8(g) arguing that it is a highlyrestrictive measure developed solely forextremely short programs <strong>of</strong>fered by afew institutions. The commenters notedthat an institution is already requiredunder § 668.41(d)(5) to disclose anyplacement rates it calculates and that itwould be confusing to students todisclose any additional rates beyondthose that it is required to calculateunder accrediting agency or Staterequirements. Some <strong>of</strong> thesecommenters suggested that in caseswhere an institution is not required byits accrediting agency to calculateplacement rates, the institution shouldcalculate the rates using a methodologyfrom a national accrediting agency orthe State in which the institution isauthorized to operate. Under either theagency or State methodology, thecommenters requested flexibility indetermining the rates for degreeprograms because employmentopportunities for graduates <strong>of</strong> degreeprograms are much more diverse thanfor graduates <strong>of</strong> occupationally specifictraining programs.One commenter stated that itsinstitution’s mission <strong>of</strong> educatingworking adults is at odds with theconcept <strong>of</strong> placement rates—many <strong>of</strong>the institution’s students are alreadyemployed and enroll to enhance theircareers through further education. Inaddition, the commenter stated that itVerDate Mar2010 14:10 Oct 28, 2010 Jkt 223001 PO 00000 Frm 00006 Fmt 4701 Sfmt 4700 E:\FR\FM\29OCR2.SGM 29OCR2would be impractical to administer a jobplacement regime for students takingonline programs who reside throughoutthe world. The commenterrecommended that placement rates becalculated in accordance with aninstitution’s accrediting agency or Staterequirements, but that the proposeddisclosures should not apply wherethere are no agency or Staterequirements. As an alternative, thecommenter suggested that regionallyaccredited institutions, which are notrequired to track employment outcomes,conduct post graduation surveys askingprogram graduates if they are working intheir field. An affirmative responsewould count as a ‘‘placement’’ even ifthe graduate maintained the sameemployment he or she had whileattending the institution. Along thesame lines, another commentersuggested that the <strong>Department</strong> allow aninstitution that is not required by anoutside agency to calculate placementrates, to develop and implement amethod that best reflects the make-up <strong>of</strong>its student body, including surveys,collecting employer documentation, orother methods.One commenter objected to using theplacement rate calculation intended forshort-term programs in § 668.8(g)because all <strong>of</strong> its programs were at orabove the baccalaureate level. While thecommenter stated that requiring publicdisclosure <strong>of</strong> relevant outcomes putspressure on an institution to ensure thatit is providing a good education to itsstudents, the commenter suggested thatunless an institution’s accreditingagency or State requires it to discloseplacement rates, the institution shouldonly disclose rates that it calculates onan annual basis for internal purposes orany employment or placementinformation it receives from surveyingits students. Another commenter madethe same suggestions and asked the<strong>Department</strong> to clarify that placementrates would only need to be updatedannually.Another commenter argued that theplacement rate methodology in§ 668.8(g) was never intended forgainful employment purposes and madeseveral recommendations including:(1) Excluding from the total number <strong>of</strong>students who completed a programduring an award year, the students whoare unable to seek employment due toa medical condition, active militaryduty, international status, continuingeducation, incarceration, or death. Inaddition, an institution could excludethose graduates who certify they are notseeking employment or those that it isunable to locate. The commenterspecified the documentation an

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