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Defining Gainful Employment General Overview U.S. Department of Education 1 Gainful Employment Measures Ratio above 8% of total income or 20% of Debt to Income discretionary income could be restricted. Ratio Ratio above 12% of

Defining Gainful Employment General Overview U.S. Department of Education 1
Gainful Employment Measures • Ratio above 8% of total income or 20% of Debt to Income discretionary income could be restricted. Ratio • Ratio above 12% of total income and 30% of discretionary income could lose eligibility. • Rates below 45% may be subject to Repayment Rates restrictions. • Rates below 35% may lose eligibility. 2
The Rule Debt Burden (Debt/Income Ratio) Above Both (12%/30%) Between Below Either (8%/20%) Repayment Rate Rate Above Fully Eligible Fully Eligible Fully Eligible 45% Restricted Restricted Fully Eligible Between Rate Below Ineligible Restricted Fully Eligible 35% 3
Program Impact Debt Burden (Debt/Income Ratio) Above Both (12%/30%) Between Below Either (8%/20%) Rate Repayment Rate Above 45% Fully Eligible Fully Eligible Fully Eligible Between Restricted Restricted Fully Eligible Rate Below 35% Ineligible Restricted Fully Eligible 4

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