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Release of 2011 Gainful Employment Informational Rates Webinar #8 June 2012.

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Presentation on theme: "Release of 2011 Gainful Employment Informational Rates Webinar #8 June 2012."— Presentation transcript:

1 Release of 2011 Gainful Employment Informational Rates Webinar #8 June 2012

2 Growing Concerns with Program Integrity Prompted Regulatory Action Rising default rates Stagnant and/or falling graduation rates Growing exposure given – Increased investments in Federal student financial aid – Student loan program changes (loan purchase & direct loans) Incentive compensation Misrepresentation State authorization Credit hour definition Ability to benefit High school diplomas Gainful employment Tightened regulations for:Concern

3 Gainful Employment Statutory Framework The HEA provides that to be Title IV eligible an educational program must be offered by: 3  Generally, all non-degree programs must lead to gainful employment A public or non-profit postsecondary educational institution and leads to a degree; or Any institution and “to prepare students for gainful employment in a recognized occupation”  Generally, most programs at for-profit institutions must lead to gainful employment

4 Gainful Employment Debt Measures* An eligible gainful employment program is one where a defined cohort of the program’s former students – Are repaying their Title IV loans (i.e., Repayment Rate) Meet a minimum debt burden standard (i.e., Debt-to-Earnings Ratios) * Based on final rule published on June 13, 2011 effective July 1, 2012 4

5 Gainful Employment Debt Measures – Repayment Rate The percentage of a Gainful Employment Program’s former students who are repaying their Title IV student loans each year 5  Weighted by loan amount  NSLDS* used to calculate the repayment rate for the cohort of students by looking for a decline in the outstanding principal balance * National Student Loan Data System Based on final rule published on June 13, 2011 effective July 1, 2012

6 Gainful Employment Debt Measures – Debt-to-Earnings Ratios 6  Institutions identify students who completed the program  Total annual student loans payment (not just federal loans if other debt was provide by the institution) included in debt calculation  NSLDS* used to identify Title IV debt and calculate the annual loan payment amount  Higher of mean or median annual earnings from Social Security Administration  Discretionary Income - Annual earnings less 150% of the poverty level for a single person The median educational loan annual repayment amount of students who completed a Gainful Employment Program as a proportion of those former student’s average annual earnings two years after completing the GE program * National Student Loan Data System Based on final rule published on June 13, 2011 effective July 1, 2012

7 Informational Debt Measures First year rates are informational only and will not result in any sanctions  Released in 2012 for the 2011 Debt Measures Year  2 year cohort period (2YP) is FY 2007 and FY 2008 Repayment Rate - Program’s former students who entered repayment in the 2 year cohort period Debt-to-Earnings - Program’s former students who completed the program in the 2 year cohort period 7

8 Title IV Eligibility A gainful employment program must pass at least one of the following three thresholds in two consecutive years to continue to be eligible for Title IV participation: 1.Repayment Rate of at least 35% 2.Debt-to-Earnings Ratio of: a.12% or less of average annual earnings; or b.30% or less of average discretionary income 8 Based on final rule published on June 13, 2011 effective July 1, 2012

9 Eligibility is by program, not by institution How the Gainful Employment Thresholds Work Program Federal Student loan repayment rate ≥35% Institution FAIL PASS Example Outcome : Each program is evaluated separately on three metrics Each metric has specific passing threshold “Passing Programs” must meet at least one threshold “Failing Programs” must Fail all three thresholds Must disclose more Retain Title IV eligibility unless fail for three years out of four Debt-to-earnings Discretionary ≤30% Debt-to-earnings Annual ≤12% PASS

10 T uition and fees On-time-graduation rate Occupations linked to the program Placement rate Median educational loan debt Repayment rate Debt-to-earnings ratios Added Disclosure for Failing Programs Fail Twice Pass Fail Three Program failing three times in four years loses Federal Student Aid eligibility Year 1 Year 2 Year 3 Year 4 Continue initial disclosures AND Notify students of the failure Describe planned program improvements Fail Once All GE Programs Disclose Continue all prior disclosures AND Warn students that debt may be unaffordable Provide information on transfer options Continue all prior disclosures ADD 10

11 Calculating Gainful Employment Informational Rates – Process Overview 11 ED provides institutions debt measures ED computes debt measures SSA returns median & mean earnings by program ED sends information to SSA Institutions report students by program Information on specific students enrolled in Gainful Employment programs reported to ED Earnings information aggregated by program by institution (no student specific data returned by SSA) Repayment rates and debt-to-earnings ratios returned along with backup data

12 Key Differences Between Informational and Official Rates No challenge process for institutions No ability for institutions to substitute alternative income measures in debt-to- earnings calculation 3% allowance for IBR/ICR in repayment rate included for all programs, which could be modified in the future No calculation for “small” programs since four year cohort period was not used 12

13 Informational Rate Data Released OPEID Institution name Street address City State Zip Code Institution type CIP Code CIP Name Credential Level Repayment Rate Repayment Rate Numerator Repayment Rate Denominator 13 Institution and Program Identification Information Debt-to-Earnings Annual Rate Debt-to-Earnings Annual Numerator Debt-to-Earning Annual Denominator Debt-to-Earnings Discretionary Rate Debt-to-Earnings Discretionary Numerator Debt-to-Earning Discretionary Denominator Program-specific Debt-to-Earnings Information Program-specific Repayment Rate Information

14 Sample of Data Release 2011 Gainful Employment Informational Metrics IMPORTANT NOTE: The Gainful Employment 2011 Informational Rates were prepared to provide institutions and the Department with preliminary data about the performance of Gainful Employment Programs in advance of the years for which official Gainful Employment rates will be calculated. For these 2011 Informational Rates, institutions did not receive draft debt measures nor did they have the opportunity to submit a challenge, as they will for official rate calculations. For these reasons, the 2011 Informational Rates are not intended to form a basis for making any general or specific assumptions, or determinations about these programs, or in making projections about the rates in future years. IMPORTANT NOTE: The Gainful Employment 2011 Informational Rates were prepared to provide institutions and the Department with preliminary data about the performance of Gainful Employment Programs in advance of the years for which official Gainful Employment rates will be calculated. For these 2011 Informational Rates, institutions did not receive draft debt measures nor did they have the opportunity to submit a challenge, as they will for official rate calculations. For these reasons, the 2011 Informational Rates are not intended to form a basis for making any general or specific assumptions, or determinations about these programs, or in making projections about the rates in future years. ‘N/A’ is displayed when a debt measure was not calculated because there were fewer than 31 students in the relevant cohort. OPEIDInstitutio n Name Street AddressCityStat e ZIPInstitution Type CIP Cod e CIP NameCredential LevelRepaym ent Rate Repaym ent Rate Numerat or Repaym ent Rate Denomin ator Debt to Earnings Annual Rate Debt to Earnings Annual Rate Numerat or Debt to Earnings Annual Rate Denomi nator Debt to Earnings Discretio nary Rate Debt to Earnings Discretio nary Rate Numerat or Debt to Earnings Discretion ary Rate Denomin ator Me dian Priv ate Loa ns Medi an Instit ution Loans Me dian Title IV Loa ns SCHOOL A Proprietary 4+ years520301Accounting.02 Associate's Degree28.78941,2503,270,2217.791,78422,89629.05178461410010,500 SCHOOL A Proprietary 4+ years520401Administrative Assistant and Secretarial Science, General.02 Associate's Degree22.53650,1272,885,41910.551,99218,87294.0919922117008,847 SCHOOL A Proprietary 4+ years520901Hospitality Administration/Management, General.02 Associate's Degree19.8844,735224,990N/A SCHOOL A Proprietary 4+ years521001Human Resources Management/Personnel Administration, General.02 Associate's DegreeN/A 8.381,71820,48146.117183726008,750 SCHOOL A Proprietary 4+ years520201Business Administration and Management, General.03 Bachelor's Degree22.15749,3943,382,2527.492,25530,07816.92225513323009,935 SCHOOL B Private 4+ years130401Educational Leadership and Administration, General.04 Post Baccalaureate Certificate65.52399,765610,0900094,4420077687000 SCHOOL C Private 4+ years240101Liberal Arts and Sciences/Liberal Studies.04 Post Baccalaureate Certificate60.51381,072629,7520033,2600016505000 SCHOOL D Private 4+ years513901Licensed Practical/Vocational Nurse Training.01 Undergraduate Certificate39.5291,038230,3564.922,08842,4078.13208825652N/A SCHOOL E Private 4+ years220302Legal Assistant/Paralegal.01 Undergraduate Certificate73.77159,086215,6472.9191431,3036.2891414548009,475 SCHOOL F Private 4+ years511613Licensed Practical/Vocational Nurse Training (LPN, LVN, Cert., Dipl, AAS)01 Undergraduate Certificate23.27152,189653,9553.171,09634,5486.15109617793006,334 SCHOOL G Public 4+ years519999Health Professions and Related Clinical Sciences, Other.01 Undergraduate Certificate34.8459,791171,6073.7877220,41421.097723659005,500 SCHOOL H Public 2-3 years240102General Studies.01 Undergraduate CertificateN/A SCHOOL I Proprietary 2-3 years510801Medical/Clinical Assistant.01 Undergraduate Certificate22.01237,3961,078,1187.091,37519,38352.32137526280010,496 SCHOOL I Proprietary 2-3 years220302Legal Assistant/Paralegal.02 Associate's Degree55.7191,368343,564N/A 006,500 SCHOOL I Proprietary 2-3 years500409Graphic Design.02 Associate's Degree35.81231,849647,3856.751,26018,65466.3512601899006,500 SCHOOL I Proprietary 2-3 years510801Medical/Clinical Assistant.02 Associate's Degree19.92189,284949,8117.751,89324,41424.7118937659006,500 SCHOOL I Proprietary 2-3 years520401Administrative Assistant and Secretarial Science, General.02 Associate's Degree21.3567,787317,39410.411,77717,054594.311777299005,416 SCHOOL J Public 2-3 years430107Criminal Justice/Police Science.01 Undergraduate Certificate93.0378,19984,0520.5824141,2220.9824124467003,250 SCHOOL K Public 2-3 years480508Welding Technology/Welder.01 Undergraduate Certificate90.3112,793124,9042.9691430,8606.4791414105005,500 SCHOOL L Public 2-3 years513901Licensed Practical/Vocational Nurse Training.01 Undergraduate Certificate71193,040271,8652.941,03535,1555.62103518400000 SCHOOL M Private 4+ years220302Legal Assistant/Paralegal.04 Post Baccalaureate Certificate69.29456,261658,4643.561,44940,6726.051449239170012,500 SCHOOL N Public 2-3 years511613Licensed Practical/Vocational Nurse Training (LPN, LVN, Cert., Dipl, AAS)01 Undergraduate Certificate38.468,426178,185N/A SCHOOL O Public 2-3 years513999Practical Nursing, Vocational Nursing and Nursing Assistants, Other.01 Undergraduate Certificate61.18265,368433,7452.531,04641,2694.26104624514005,985 SCHOOL P Public 2-3 years513901Licensed Practical/Vocational Nurse Training.01 Undergraduate Certificate73.58328,186446,0111.1245740,5251.9245723770005,250 SCHOOL Q Public 4+ years430103Criminal Justice/Law Enforcement Administration.01 Undergraduate Certificate56.4581,273143,9500037,609002085402,4731,759 14

15 27,583 Programs 3,612 Schools 6 Million Students 6,423 Programs 2,197 Schools 3.4 Million Student 3,695 Programs 1,336 Schools 2.6 Million Students 193 Programs 93 Schools 130,000 Students Unique programs that had students in the relevant 2- year measurement period (FY2007 and FY 2008) Unique programs with at least 31 students for either of the debt measures Unique programs with at least 31 students for both debt measures where metrics were calculated Unique programs that did not meet all metric thresholds 2011 GAINFUL EMPLOYMENT INFORMATIONAL RATES PROGRAMS EVALUATION The 27,583 programs included 3,093 discrete combinations of classification of instructional program (CIP) and degree levels for which data were received.

16 Summary of Results Gainful Employment Informational Rates 16 Program Count Repayment Rate Debt-to-Earnings AnnualDiscretionary #% 1,28834.9%Pass 73820.0%Pass Fail 130.4%PassFailPass 1584.3%PassFail 40210.9%FailPass 89724.3%FailPassFail 60.2%Fail Pass 1935.2%Fail Total: 3,695 Based on final rule published on June 13, 2011 effective July 1, 2012

17 Gainful Employment Programs by Degree Level that Did Not Meet All Three Thresholds 17

18 Gainful Employment Programs That Fail to Meet All Three Metrics by Credential and Field of Study 18 Associate’s Degree Bachelor’s DegreeUndergraduate Certificate

19 Number of Gainful Employment Programs by State that Did Not Meet All Three Thresholds 19 Only for States with Failing Gainful Employment programs

20 27,583 Programs 3,612 Schools 6,423 Programs 2,197 Schools 3,695 Programs 1,336 Schools 193 Programs 93 Schools Unique programs that had students in the relevant 2- year measurement period (FY2007 and FY 2008) Unique programs with at least 31 students for either of the debt measures Unique programs with at least 31 students for both debt measures where metrics were calculated Unique programs that did not meet all metric thresholds 2011 GAINFUL EMPLOYMENT INFORMATIONAL RATES PROGRAMS EVALUATION 4,614 Programs Individual programs where Repayment Rate calculated Repayment Rate

21 21 Gainful Employment Informational Rates Repayment Rate Number of GE programs Failing Programs

22 27,583 Programs 3,612 Schools 6,423 Programs 2,197 Schools 3,695 Programs 1,336 Schools 193 Programs 93 Schools Unique programs that had students in the relevant 2- year measurement period (FY2007 and FY 2008) Unique programs with at least 31 students for either of the debt measures Unique programs with at least 31 students for both debt measures where metrics were calculated Unique programs that did not meet all metric thresholds 2011 GAINFUL EMPLOYMENT INFORMATIONAL RATES PROGRAMS EVALUATION 4,614 Programs 5,504 Programs Individual programs where Debt- to-Earnings Ratios calculated Individual programs where Repayment Rate calculated Repayment Rate Debt-to- Earnings Ratios

23 23 Gainful Employment Informational Rates Annual Debt-to-Earnings Ratio Number of GE programs Failing Programs

24 24 Gainful Employment Informational Rates Discretionary Debt-to-Earnings Ratio Number of GE programs Failing Programs

25 Availability of 2011 Gainful Employment Information al Rates Beginning Tuesday morning, June 26, 2012 online at the FSA Data Center http://federalstudentaid.ed.gov/datacenter/ schooldata.html Downloadable Spreadsheet One row for each GE Program School OPEID, Program CIP Code, Credential Level Each metric with numerator and denominator Loan medians with numerators and denominators Glossary that describes each column’s data 25

26 26

27 Appendix Additional Data 27

28 Share of Gainful Employment Programs By Type of Program that Do Not Meet Any Metric 28 Includes program for which metrics were not calculated. A total of 3,093 discrete types of programs were measured. Of those, only 50 had programs that failed all three metrics.

29 Share of Gainful Employment Programs By Type of Program that Do Not Meet Repayment Rate Metric 29 A total of 3,093 discrete types of programs were measured. Of those, only 83 had programs that failed the repayment rate metric.

30 Failing Programs by Institution School OPEID School NameCityStateSchool Type All Evaulted GE Programs at School All Evaulted GE Programs at School That Failed All Three Metrics Percen t Failing 030106VIRGINIA COLLEGEBIRMINGHAMALProprietary18528% 022842NEW TYLER BARBER COLLEGENORTH LITTLE ROCKARProprietary11100% 030234ARKANSAS COLLEGE OF BARBERING & HAIR DESIGNNORTH LITTLE ROCKARProprietary11100% 012937EMPIRE BEAUTY SCHOOLPHOENIXAZProprietary11100% 020988UNIVERSITY OF PHOENIXTEMPEAZProprietary5612% 022203EMPIRE BEAUTY SCHOOLPHOENIXAZProprietary11100% 022631ANTHEM COLLEGEPHOENIXAZProprietary2215% 022950EVEREST COLLEGE PHOENIXPHOENIXAZProprietary5240% 026167LE CORDON BLEU COLLEGE OF CULINARY ARTSSCOTTSDALEAZProprietary6117% 030764BRYMAN SCHOOL OF ARIZONA (THE)PHOENIXAZProprietary17212% 031203COLLEGEAMERICA - FLAGSTAFFFLAGSTAFFAZProprietary22100% 007236ART INSTITUTE OF CALIFORNIA - LOS ANGELES (THE)SANTA MONICACAProprietary1318% 008093HEALD COLLEGEFRESNOCAProprietary6117% 021108CALIFORNIA COLLEGE SAN DIEGOSAN DIEGOCAProprietary2150% 030727WESTWOOD COLLEGE - LOS ANGELESLOS ANGELESCAProprietary12217% 004503EVEREST COLLEGECOLORADO SPRINGSCOProprietary6233% 004507EVEREST COLLEGETHORNTONCOProprietary10220% 007548WESTWOOD COLLEGE - DENVER NORTHDENVERCOProprietary17635% 020722EMPIRE BEAUTY SCHOOL -ARVADAARVADACOProprietary11100% 021411EMPIRE BEAUTY SCHOOL-LITTLETONLITTLETONCOProprietary2150% 025943COLLEGEAMERICA DENVERDENVERCOProprietary22100% 001499EVEREST UNIVERSITYORLANDOFLProprietary16850% 001534EVEREST UNIVERSITYTAMPAFLProprietary14643% 008146EVEREST UNIVERSITY - POMPANO BEACHPOMPANO BEACHFLProprietary10330% 008878 MIAMI INTERNATIONAL UNIVERSITY OF ART & DESIGNMIAMIFLProprietary7457% 010195ART INSTITUTE OF FORT LAUDERDALE (THE)FORT LAUDERDALEFLProprietary1417% 022187FLORIDA TECHNICAL COLLEGEORLANDOFLProprietary10110% 023058FLORIDA CAREER COLLEGEMIAMIFLProprietary11327% 023621FULL SAIL UNIVERSITYWINTER PARKFLProprietary1119% 025998EVEREST UNIVERSITYLARGOFLProprietary12650% 030314 INTERNATIONAL ACADEMY OF DESIGN AND TECHNOLOGYTAMPAFLProprietary15960% 034297EAST WEST COLLEGE OF NATURAL MEDICINESARASOTAFLProprietary11100% 009270ART INSTITUTE OF ATLANTA (THE)ATLANTAGAProprietary12325% 011574BAUDER COLLEGEATLANTAGAProprietary4250% 013039SOUTH UNIVERSITYSAVANNAHGAProprietary1517% 030891GEORGIA INSTITUTE OF COSMETOLOGYATHENSGAProprietary11100% 031161VOGUE BEAUTY AND BARBER SCHOOLHIRAMGAProprietary11100% 038044MEDTECH INSTITUTEATLANTAGAProprietary3133% 026092VATTEROTT COLLEGEDES MOINESIAProprietary10110% 022758MR. LEON'S SCHOOL OF HAIR DESIGNMOSCOWIDProprietary11100% 012584ILLINOIS INSTITUTE OF ART (THE)CHICAGOILProprietary10110% 021136AMERICAN INTERCONTINENTAL UNIVERSITYSCHAUMBURGILProprietary13431% 021603 INTERNATIONAL ACADEMY OF DESIGN AND TECHNOLOGYCHICAGOILProprietary17635% 023139WESTWOOD COLLEGE - O'HARE AIRPORTCHICAGOILProprietary7229% 030792WESTWOOD COLLEGE - DUPAGEWOODRIDGEILProprietary8563% School OPEID School NameCityStateSchool TypeAll Evaulted GE Programs at School All Evaulted GE Programs at School That Failed All Three Metrics Percent Failing 010489NATIONAL COLLEGEINDIANAPOLISINProprietary8225% 022018KAPLAN COLLEGEHAMMONDINProprietary8113% 006755BROWN MACKIE COLLEGE (THE)SALINAKSProprietary4125% 009313DAYMAR COLLEGEOWENSBOROKYProprietary4125% 007481SANFORD-BROWN COLLEGEBOSTONMAProprietary3133% 007486NEW ENGLAND INSTITUTE OF ART (THE)BROOKLINEMAProprietary7229% 009828EVEREST INSTITUTESOUTHFIELDMIProprietary9111% 011098FLINT INSTITUTE OF BARBERINGFLINTMIProprietary11100% 007351BROWN COLLEGEMENDOTA HEIGHTSMNProprietary7343% 022052SANFORD-BROWN COLLEGEFENTONMOProprietary17741% 022392ANTHEM COLLEGEMARYLAND HEIGHTSMOProprietary10110% 022506EVEREST COLLEGESPRINGFIELDMOProprietary6233% 025997VATTEROTT COLLEGEBERKELEYMOProprietary20630% 021105ART INSTITUTE OF CHARLOTTE (THE)CHARLOTTENCProprietary4125% 007501VATTEROTT COLLEGEOMAHANEProprietary5120% 011519JOSEPH'S COLLEGE OF BEAUTYLINCOLNNEProprietary2150% 002678BRYANT & STRATTON COLLEGEBUFFALONYProprietary1218% 004811EVEREST INSTITUTEROCHESTERNYProprietary8450% 011647SBI CAMPUS - AN AFFILIATE OF SANFORD-BROWNMELVILLENYProprietary8113% 025256ART INSTITUTE OF NEW YORK CITY (THE)NEW YORKNYProprietary5240% 004853BRADFORD SCHOOLCOLUMBUSOHProprietary5120% 004866STAUTZENBERGER COLLEGEMAUMEEOHProprietary11100% 011005KAPLAN COLLEGECOLUMBUSOHProprietary2150% 012891ANTONELLI COLLEGECINCINNATIOHProprietary6583% 012896VIRGINIA MARTI COLLEGE OF ART AND DESIGNLAKEWOODOHProprietary3133% 033674COMMUNITY CARE COLLEGETULSAOKProprietary4125% 009079EVEREST COLLEGEPORTLANDORProprietary9111% 010122PHAGANS' MEDFORD BEAUTY SCHOOLMEDFORDORProprietary11100% 010507ACADEMY OF HAIR DESIGNSALEMORProprietary11100% 007091EVEREST INSTITUTEPITTSBURGHPAProprietary6233% 007436KAPLAN CAREER INSTITUTE - ICM CAMPUSPITTSBURGHPAProprietary3133% 008350ART INSTITUTE OF PHILADELPHIA (THE)PHILADELPHIAPAProprietary17424% 013015EMPIRE BEAUTY SCHOOLPHILADELPHIAPAProprietary11100% 030068LE CORDON BLEU INSTITUTE OF CULINARY ARTSPITTSBURGHPAProprietary3133% 030108FORTIS INSTITUTEERIEPAProprietary10110% 021171ART INSTITUTE OF HOUSTON (THE)HOUSTONTXProprietary6233% 022482MILAN INSTITUTE OF COSMETOLOGYAMARILLOTXProprietary11100% 023182KD STUDIODALLASTXProprietary11100% 025693LE CORDON BLEU COLLEGE OF CULINARY ARTSAUSTINTXProprietary3267% 003674STEVENS HENAGER COLLEGEWEST HAVENUTProprietary8113% 022985EVEREST COLLEGESALT LAKE CITYUTProprietary6350% 023608PROVO COLLEGEPROVOUTProprietary4125% 003726NATIONAL COLLEGESALEMVAProprietary11218% 009420SANFORD-BROWN COLLEGEMCLEANVAProprietary33100% 010198ECPI UNIVERSITYVIRGINIA BEACHVAProprietary1816% 031264CENTURA COLLEGENORTH CHESTERFIELDVAProprietary2150% 010356EVEREST INSTITUTECROSS LANESWVProprietary8113% 022119CHEEKS INTERNATIONAL ACADEMY OF BEAUTY CULTURECHEYENNEWYProprietary11100%


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