Answers to Gainful Employment Sample Test

All tests will include a combination of multiple-choice and scenario-based questions. The following examples are similar in structure and scope to the questions that will appear on the test for this topic.

1. If a student enrolled in a degree program at a public or nonprofit institution happens to complete the requirements for a nondegree certificate while pursuing a degree program, the embedded coursework leading to a nondegree certificate program is

    • not a GE program because the school is public or nonprofit.
    • always a GE program because it is a nondegree program.
    • CORRECT: not a GE program as long as most students enrolled in the degree program actually earn the degree.
    • a GE program only if the school charges additional costs for the nondegree credential.

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2. The annual earnings data for debt-to-earnings rate calculations are

    • provided by the school based on the student’s highest adjusted gross income reported on the FAFSA® while enrolled.
    • CORRECT: provided by the Social Security Administration.
    • provided by the Internal Revenue Service.
    • based on Bureau of Labor Statistics data for the CIP code of the student’s program.

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3. Gainful employment reporting beyond student identifiers—such as CIP code, credential level, and program length—must be completed

    • only for students in a GE program who are borrowing Direct Loans during the same academic year.
    • only for students with loan debt in excess of the published average loan debt for the student’s program.
    • for all students enrolled in a GE program with an annual cohort of at least 20 students.
    • CORRECT: for all Title IV aid recipients enrolled in a GE program during the same academic year.

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4. For each gainful employment program, the institution.

    • must use the required disclosure template unless there are fewer than 20 students currently enrolled in that program.
    • may elect to use its own disclosure form as long as it provides the required information.
    • CORRECT: must use the required disclosure template and make the disclosure available on its website.
    • is exempt from disclosure requirements for any program that passed the debt-to-earnings test.

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5. The “borrowers in active repayment” used in ED’s calculation of loan repayment rates includes

    • CORRECT: borrowers who made payments during the most recently completed award year on their loan debt sufficient to reduce the outstanding balance on their loans by at least $1.
    • borrowers with outstanding loan debt that NSLDS characterizes as being “in repayment.”
    • borrowers who made payments during the most recently completed award year on their loan debt sufficient to reduce the outstanding balance on their loans by at least $100.
    • borrowers who made at least six consecutive on time payments on their loans during the most recently completed award year.

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Publication Date: 2/15/2017

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