What's happening
This bill requires the New York State Education Commissioner to create a public grading system for for-profit colleges based on metrics like graduation rates, debt, and job placement.
Why it matters
Empowers students and families to make informed decisions. by providing transparent, comparable data on the true costs, graduation rates, and job outcomes at for-profit colleges—critical for those considering programs that have historically shown variable results.
Creates public accountability for for-profit colleges. , incentivizing these institutions to improve performance in areas such as job placement, debt levels, and support services, since poor grades could deter prospective students.
Addresses risks of student debt and poor economic outcomes. by spotlighting metrics like median debt, default rates, and post-graduation earnings, which can help prevent students from enrolling in programs that may leave them with unmanageable loans or limited job prospects.
Encourages the provision and visibility of student support services. (such as mental health and career counseling), as these are now part of the information reported and graded, potentially leading to better student experiences and outcomes.
Albany, before your first meeting.
Every bill that moved yesterday, summarized in a sentence and ranked by impact. The Albany Scorecard follows on Sundays.
Free. Unsubscribe in one click. Want alerts on specific bills? Create an account.
Who cares
Headline styles
Grade For-Profit Colleges
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to higher education
- Referred to higher education
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Grade For-Profit Colleges
In Senate Committee · Higher Education · Sponsor Kevin Thomas
Full text
3 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
7760
2019-2020 Regular Sessions
IN ASSEMBLY
May 20, 2019
Introduced by M. of A. EPSTEIN -- read once and referred to the Committee on Higher Education
AN ACT to amend the education law, in relation to directing the commissioner of education to establish a system for grading for-profit institutions of higher education
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Section 305 of the education law is amended by adding a new subdivision 60 to read as follows:
60. a. The commissioner is authorized and directed to establish and maintain a database of the following information on every for-profit institution of higher education:
(i) total for-profit institution of higher education program cost;
(ii) graduation rate;
(iii) graduate placement rate;
(iv) total placement rate;
(v) community service programs provided to students to do volunteer work for either a corporation, association, organization or trust described in section 501 (c) (3) of the United States internal revenue code or a government agency;
(vi) support services available to students including career and guidance counseling and mental health services;
(vii) median time in which a student completes a for-profit institution of higher education program;
(viii) median cumulative student debt amount;
(ix) average amount borrowed;
(x) cohort default rate;
(xi) post school earnings; and
(xii) outstanding student debt of for-profit institution of higher education graduates ten years out.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD11237-02-9
A. 7760 2
b. (i) Annually on or before July first, each for-profit institution of higher education shall report to the department all information regarding subparagraphs (i) through (vi) of paragraph a of this subdivision necessary for the commissioner to establish and maintain the database pursuant to paragraph a of this subdivision. The commissioner shall promulgate rules and regulations regarding the form and content of such report.
(ii) The commissioner shall utilize all information reported by a for-profit institution of higher education and information publicly available from the federal government and any other source as deemed necessary by such commissioner to carry out the provisions of this subdivision.
c. (i) The commissioner shall devise a method for assigning and publishing a letter grade to every for-profit institution of higher education based upon the information contained in the database established pursuant to this subdivision. Such grade shall be updated annually.
(ii) Each for-profit institution of higher education shall prominently display on its website the letter grade most recently assigned to such institution pursuant to subparagraph (i) of this paragraph.
d. As used in this subdivision, the following terms shall have the following meanings:
(i) "For-profit institution of higher education" means a school that:
(1) provides a program leading to an associates or baccalaureate degree;
(2) is legally authorized in New York state to provide a program of education beyond secondary education; and
(3) is neither a public or non-profit institution.
(ii) "Graduation rate" means the number of students at a for-profit institution of higher education who received certificates, diplomas, or degrees in the program during the latest two calendar years, divided by the number of students who enrolled in the program during the latest two calendar years. The graduation rate shall be determined within one hundred eighty days from the end of each calendar year and shall be calculated separately for students admitted as freshmen and students who transfer in.
(iii) "Graduate placement rate" means the number of students obtaining full time (at least thirty-two hours per week), non-temporary employment in the field of study during the latest two calendar years for which the for-profit institution of higher education has obtained verification, divided by the number of all students graduating from the program during the latest two calendar years. The graduate placement rate shall be determined within one hundred eighty days from the end of each calendar year and shall be calculated separately for students admitted as freshmen and students who transfer in.
(iv) "Total placement rate" means the product of the graduate placement rate and the graduation rate. The total placement rate shall be determined within one hundred eighty days from the end of each calendar year.
(v) "Median cumulative debt amount" means the median amount of cumulative debt, including private, institutional, and federal, incurred by a student who attended a for-profit institution of higher education whether or not they completed a program at such institution.
(vi) "Average amount borrowed" means the average amount of private, institutional, and federal, loans a student who attended a for-profit
A. 7760 3
institution of higher education borrows to enroll in a program at such institution.
(vii) "Post school earnings" means the sum of any wages, deferred compensation and self-employment earnings.
(viii) "Cohort default rate" means the percentage of a for-profit institution of higher education's borrowers who enter repayment on any private, institutional and federal loans during the fiscal year and default within the cohort default period. Cohort default rate shall be calculated for the periods of three years, five years and ten years.
§ 2. This act shall take effect on the first of January next succeeding the date on which it shall have become a law. Effective immediately, the addition, amendment and/or repeal of any rule or regulation necessary for the implementation of this act on its effective date are authorized to be made and completed on or before such effective date.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.