Order granting-in-part and denying-in-part Defendants’ Motion to Dismiss. Plaintiff, a former student in an online master’s degree program at Grand Canyon University who sought to become a mental health therapist, on behalf of herself and a putative class, brought RICO, and California False Advertising Law (FAL), Unfair Competition Law (UCL), Consumers Legal Remedies Act (CLRA), and unjust enrichment claims against the University and multiple individual officials after she completed the program and learned that it would not be accepted by California licensing authorities. Plaintiff alleged that University counselors and staff assured her both before and after enrolling that the program would meet her needs. The court dismissed her RICO claim because she had not plausibly alleged that the defendants conducted a separate, distinct enterprise and because she had not alleged they had committed at least two acts of racketeering activity. It permitted her FAL, UCL, and CLRA claims to proceed, however, finding she had alleged with sufficient particularity that false or misleading statements about the University’s professional programs’ accreditation were targeted at current and prospective students. It also permitted her unjust enrichment claim to proceed, finding the University’s enrollment agreement was outside of the scope of the pleadings.
Topics:
Accreditation, Authorizations, & Higher Education Act | Admissions | Compliance & Risk Management | Program Integrity & Gainful Employment | Students
Summary from the National Association of College & University Business Officers on legislative and regulatory actions that occurred from July 25-August 7, 2023. This summary highlights actions from the Department of Education opening applications for the Postsecondary Student Success Grant Program to improve outcomes for underserved students, announcing the Fiscal Operations Report for 2022-23 and Application to Participate for 2024-25 (FISAP), and previewing the new FAFSA; the issue brief from the American Council on Education (ACE) on the recent Supreme Court ruling on race-conscious admissions; NACUBO’s advocacy to the House Committee on Appropriations expressing concern over proposed constraints on the Department of Education’s budget; and NACUBO’s advocacy on a proposal to form a working group to address the IPEDS Finance Survey.
Topics:
Accreditation, Authorizations, & Higher Education Act
Summary from the National Association of College & University Business Officers on legislative and regulatory actions that occurred from July 11-24, 2023. This summary highlights virtual hearings launching the Biden Administration’s new effort at broad student debt forgiveness; coverage of NACUBO’s recent Annual Meeting; recent advocacy with the leaders of the House Committee on Appropriations expressing concerns over the proposed cuts affecting higher education and students in the FY24 funding bill; and resources to help institutions prepare for upcoming changes in the Free Application for Federal Student Aid (FAFSA).
Topics:
Accreditation, Authorizations, & Higher Education Act
U.S. Department of Education, Office of Federal Student Aid Dear Colleague Letter (DCL) on Implementation and Policy Guidance of the Pre-Dispute Arbitration Agreement Provisions. The DCL provides guidance to institutions participating in the Direct Loan Program on amendments to agreements with students or notices to those students that might be required for compliance with new regulations, which became effective on July 1, 2023, prohibiting institutions from requiring students to agree to internal dispute resolution requirements, class action bans, or pre-dispute arbitration agreements in order to benefit from a Direct Loan.
Topics:
Accreditation, Authorizations, & Higher Education Act | Financial Aid, Scholarships, & Student Loans | Higher Education Act (HEA) | Students
Summary from the National Association of College & University Business Officers on legislative and regulatory actions that occurred from June 27-July 10, 2023. This summary highlights the publication by the Copyright Royalty Board of the Library of Congress of the final rates and terms related to use of certain musical works in noncommercial broadcasting, including by campus radio stations; and NACUBO’s comments to the Financial Accounting Standards Board (FASB) on its exposure draft, Intangibles—Goodwill and Other—Crypto Assets (Subtopic 350-06) Accounting for and Disclosure of Crypto Assets.
Topics:
Accreditation, Authorizations, & Higher Education Act
U.S. Department of Education Updated Waivers and Modifications after the termination of the COVID-19 National Emergency. With the end of the COVID-19 national emergency, ED issued updated waivers and modifications to Federal student financial aid programs under the Higher Education Relief Opportunities for Students Act of 2003 (HEROES Act). ED had waived the requirement that institutions of higher education require a parental signature, if the applicant is a dependent student, to verify the number of family members in a household enrolled in IHEs, as well as permitted supporting documents to be sent via email or text message. That waiver expires at the end of the payment period beginning after the national emergency ends on April 10, 2023.
Topics:
Accreditation, Authorizations, & Higher Education Act | Financial Aid, Scholarships, & Student Loans | Higher Education Act (HEA) | Students
Comment Letter from the American Council on Education (ACE) and 47 other higher education associations to the U.S. Department of Education on its Notice of Proposed Rulemaking (NPRM) on Financial Value Transparency and Gainful Employment (GE), Financial Responsibility, Administrative Capability, Certification Procedures, and Ability to Benefit. In the 15-page letter, higher education associations expressed multiple concerns about the proposed expansion of reporting obligations related to debt-to-earnings ratios and earnings premium rates, the burden of this reporting, the requirement for student acknowledgments if a program fails one or both tests, and the proposed inclusion of these metrics in Program Participation Agreement certification decisions. The associations also urged the Department to work with NC-SARA to address consumer protection requirements through the reciprocity agreement rather than to require all institutions to meet all state consumer protection laws related to closure, recruitment, and misrepresentation in all states in which they offer distance education.
Topics:
Accreditation, Authorizations, & Higher Education Act | Higher Education Act (HEA) | Program Integrity & Gainful Employment
Topics:
Accreditation, Authorizations, & Higher Education Act
U.S. Department of Education Office of Postsecondary Education Notice of Proposed Rulemaking on Gainful Employment (GE), Financial Responsibility, Administrative Capability, Certification Procedures, Ability to Benefit (ATB). In addition to requirements for certificate programs and degree programs at private for-profit institutions, the new regulations would also collect and report information from all institutions on costs, typical borrowing amounts, earnings, and licensure data where applicable. Update: On May 19, the Department published the NPRM in the Federal Register. Comments are due on or before June 20, 2023.
Topics:
Accreditation, Authorizations, & Higher Education Act | Higher Education Act (HEA) | Program Integrity & Gainful Employment
U.S. Department of Education Dear Colleague Letter (DCL) Updating Third-Party Servicer (TPS) Guidance. On May 16, the Department published guidance removing the September 1, 2023 deadline for compliance with reporting requirements. The Department plans “to issue a finalized revised DCL with an effective date at least six months after its publication to allow institutions and third-party servicers covered by the final guidance to meet any reporting requirements.” Additionally, “[d]eadlines for audit and contractual requirements will follow, starting with the institution’s first fiscal year that begins after the effective date for the reporting requirements.” This DCL also rescinds earlier guidance prohibiting contracts with foreign-owned or operated servicers.
Topics:
Accreditation, Authorizations, & Higher Education Act | Financial Aid, Scholarships, & Student Loans | Higher Education Act (HEA) | Students
