Goldman Sachs Provides Color on Educational Sector

Goldman Sachs provided color on the Educational sector. In a research report published today, Goldman Sachs commented on the final regulations on Gainful Employment, released by the US department of Education. In the report, Goldman states, "On June 2, the US Department of Education released the final regulations on Gainful Employment (GE), which were less restrictive than the draft rules... There are two key changes that make it less likely that a program will be deemed ineligible under the new rules including: (1) timing for compliance has been eased to 2015 from July 1, 2012, thereby giving institutions a longer transition period; and (2) a program must fail the three stated thresholds (repayment rate, debt-to-total income, debt-to-discretionary income) three out of four years to be deemed ineligible."