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Measuring Program Risk Under New "Gainful Employment" Rules: A Tool for Analyzing Graduates' Earnings Progression

Career colleges are well aware of the pressure they're under to begin to track their graduates' success in the job market. What they and other educational institutions may not know: Equifax can help.

The U.S. Department of Education's "Gainful Employment" regulations will measure proprietary institutions of higher education, as well as non-degree programs at non-profit institutions, based on the value of individual degree programs to graduates in their careers, relative to the debts they incur. Specifically, the Department of Education will assess the debt-to-earnings ratios for graduates of their programs that participated in Title IV.

The Department will initially analyze debt-to-earnings ratios by comparing 2014 income reported on tax returns filed in April 2015 and the debt of the graduates in the 2010-2011 and 2011-2012 award year.

How can institutions assess right now what programs might be at risk when the Department of Education conducts this analysis? Equifax can help and offers an analytical platform that provides insight into graduate employment and earnings outcomes by program based on current earnings data.

Recent Webinar:

Learn about the Department of Education's "Gainful Employment" rules and how Equifax can provide analysis of graduates' earnings progression based on a unique database of earnings data from over 4,300 employers.

View the recording.

At a recent webinar, Naser Hamdi, Vice President of Workforce Solutions Data and Analytics at Equifax Workforce Solutions, described how the platform provides insights based on The Work NumberŪ, using income data from over 4,300 employers.

Hamdi explained how the platform can be used by an educational institution to develop an up-to-date picture of graduate earnings broken down by program, major, and industry of employment, among other key metrics.

The need for analysis is clear: In a poll conducted during the webinar, nearly 60% of the attendees said their ability to track graduates' earnings progression "needs to improve a lot."

The webinar also featured Dennis Cariello, a shareholder at law firm Hogan Marren, Ltd. and a co-chairman of the firm's education practice, who explained the regulations and outlined their likely impact.

To learn more, please send us an email or view the complete recording.

Newsletter: July 2015

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