As I have mentioned on this blog in the past the federal government has been trying to limit the availability for schools to get loan funding. The rules were complex and most likely hard to meet. This would have meant less schools and therefore less graduates. But there is good news.
On February 18th members of the U.S. House of Representatives on a vote 289 - 136 - 1to adopt the Kline/Hastings "Gainful Employment" Amendment to H.R. 1 -- The Full-Year Continuing Appropriations for Fiscal Year 2011 Act.
This is a hard fought validation of over two years of concentrated focus on attempts by the American Association of Cosmotology Schools (AACS) to prevent the Department of Education from implementing the overly complex, unfair, and possibly unconstitutional attempts to define "gainful employment in a recognized occupation" as defined in the HEA. As prescribed in the House passed amendment, the U.S. Department of Education would be prohibited from implementing, administering, or enforcing the interim final regulations published on October 29, 2010 AND any issuance or further development pending final regulations until the end of fiscal year 2011 (September 30, 2011).
We will be keeping an eye on this and will keep you posted.
Larry Kopsa CPA
