1. 2013 Negotiated Rulemaking: Gainful Employment
Brian W. Jones
General Counsel, Strayer University

2. AGENDA Background – the 2011 Rule and Subsequent Litigation
Back to the Drawing Board – the 2013 Negotiated Rulemaking
The Road Ahead?

3. 2011 Rule and Litigation
First GE negotiated rulemaking failed to reach consensus
Final Rule included three alternative metrics:
Debt-to-Annual Income
Debt-to-Discretionary Income
Repayment Rate
Final Rule challenged by APSCU
In June 2012, U.S. District Court vacates rule and affirms ED’s authority to regulate GE; in March 2013, the same District Court substantially narrows that authority

4. 2013: Back to the Drawing Board
Committee established in August; 14 non-federal negotiators
Department’s initial proposal: two debt-to-income metrics
Subsequent proposal: four, more onerous, required metrics
Two debt-to-income metrics
Program-level CDR
Portfolio Repayment Rate
Final proposal: two debt-to-income metrics; program-level CDR

5. The Road Ahead?
ED has indicated it hopes to publish NPRM in “early 2014”
Under Master Calendar must publish Final Rule by November 1 to have rule effective in July 2015
Uncertainty about internal drivers