Colleges Request Easing of Gainful Rule Due to FAFSA Problems

As many of you may know, financial aid is an important part of helping students go to college. This is often achieved through the Free Application for Federal Student Aid (FAFSA). This form is used to determine how much federal aid a student will receive based on their financial situations. It has been found recently that there are some problems with the FAFSA and how it impacts a rule called the Gainful Employment Rule.

What is the Gainful Employment Rule?

The Gainful Employment Rule is something that all schools that take part in federal student aid programs should follow. This rule says that the amount of money students borrow for their education should be worth it for the job that they get after graduation. To put it simply, it means that students should not have to borrow more money than what they can reasonably pay back based on their future job.

What are the FAFSA Problems?

Lately, some issues have come up with the FAFSA. These problems have made it hard for the Gainful Employment Rule to be followed. That's why colleges are asking for a bit of a break or 'relief' from this rule.

Details of the Issue

The problems started when the Department of Education updated the FAFSA to add certain questions about income. While the intentions behind these changes were to better understand students' economic situations, it actually led to a delay in the process. As a consequence, over two million students who had applied for financial aid were held up.

Colleges' Request for Relief

Because of these problems, colleges are asking for relief from the Gainful Employment Rule. The American Council on Education (ACE), the National Association of Student Financial Aid Administrators (NASFAA), and other college groups have asked the Department of Education to relax this rule.

The Outcome

The Department of Education is still considering these requests. They understand the difficulty these FAFSA problems have caused colleges and students. However, the future of the Gainful Employment Rule remains to be seen.

You've now been updated on the situation with the Gainful Employment Rule and the FAFSA difficulties. Remember, always stay in touch with your college's financial aid office for any updates or help you might need!