Cases & Developments - National Association of College and University Attorneys

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Date:
6/23/2023
U.S. Dep.’t of Education Updated Waivers and Modifications (June 19, 2023)
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
Date:
5/26/2023
Dear Colleague Letter Updating Third-Party Servicer Guidance (May 16, 2023)
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
Date:
5/5/2023
Bueno v. Univ. of Miami (S.D. Fla. Apr. 26, 2023)
Order granting Defendant’s Motion to Dismiss. Plaintiff, a former student at the University of Miami, sued the University, alleging that it violated the Fair Credit Reporting Act (FCRA) by not correcting the amount of his outstanding student loan debt with two credit bureaus after it allegedly promised to absolve his loan balance. Plaintiff’s complaint failed, first, because he had alleged the existence of a legal dispute rather than a factual inaccuracy. Plaintiff also failed to allege that the University, rather than a third-party servicer, qualified as the relevant “furnisher of information” under the FCRA.
Topics:
Financial Aid, Scholarships, & Student Loans | Students
Date:
5/5/2023
U.S. Dep.’t of Education Updated Guidance on Justice System Involved Students (Apr. 28, 2023)
U.S. Department of Education, Office of Career, Technical, and Adult Education Updated Guidance on Justice System Involved Students. With the upcoming reinstatement in July 2023 of federal Pell Grants for individuals who are incarcerated, the Department released an updated “Beyond the Box” guide for institutions addressing barriers to education for formerly incarcerated individuals.
Topics:
Accreditation, Authorizations, & Higher Education Act | Financial Aid, Scholarships, & Student Loans | Students
Date:
5/5/2023
Dep.’t of Education Letter to IHE Leaders on Changes to Federal Student Aid and FAFSA Process (Apr. 12, 2023)
U.S. Department of Education, Office of Federal Student Aid (FSA) announcement of Letter to Presidents, Chancellors, and CEOs on Changes to Federal Student Aid and 2024-25 FAFSA Process. FSA’s Chief Operating Officer emailed institution leaders to highlight the potential impacts of implementation of the FAFSA Simplification Act and the Fostering Undergraduate Talent by Unlocking Resources for Education Act (FUTURE Act), noting that “[t]he successful implementation of both laws will greatly alter the current systems and procedures your school uses to award federal student aid.” Anticipated impacts include the need for more resources and training for financial aid leaders and staff; review of current admissions and financial aid deadlines and practices; increased staffing to support an increased number of students eligible for federal aid; impacts on enrollment and/or retention strategies; resources and training for updates for software, security, and systems updates; and increased risks associated with non-compliance, such as audit findings, fines, and/or liabilities. All changes will be fully implemented beginning with the 2024-25 academic year.
Topics:
Accreditation, Authorizations, & Higher Education Act | Financial Aid, Scholarships, & Student Loans | Students
Date:
4/28/2023
Fowler v. United States Dep’t of Educ. (E.D. Pa. Apr. 20, 2023)
Memorandum granting defendants’ motions to dismiss. Plaintiff, who was a graduate student and Fontaine Fellow at the University of Pennsylvania in the 1980s, brought a contract claim against the University asserting that she was unaware that she had also borrowed $62,000 in federal student loans until she was placed on the federal Credit Alert Verification Reporting System and her credit was negatively impacted. She asserted that by processing her fellowship application, the University “agreed to properly process all matters related to her attendance.” Her contract claim failed, however, because she did not identify an explicit contract with the University and “breach of an implied promise is not cognizable under Pennsylvania law in the higher education context.”
Topics:
Financial Aid, Scholarships, & Student Loans | Students
Date:
4/14/2023
In re Mass. Inst of Tech. (N.L.R.B. Region No. 1 Mar. 13, 2023)
Decision and Order dismissing petitioner’s request for self-determination election. Petitioner, the union representing graduate student employees at the Massachusetts Institute of Technology (MIT), sought to include in the bargaining unit graduate fellows who receive grants but who are not research assistants or teaching assistants. The Regional Director concluded that the graduate fellows are not employees, noting that although they serve the University’s interests in “advancing knowledge,” their compensation is tied only to maintaining academic good standing.
Topics:
Collective Bargaining | Faculty & Staff | Financial Aid, Scholarships, & Student Loans | Students
Date:
4/14/2023
Update on ED’s Third-Party Servicer Guidance (Apr. 11, 2023)
U.S. Department of Education Update on Third-Party Servicer (TPS) Guidance. The Department announced that the September 1, 2023 effective date for its Dear Colleague Letter (DCL) on Third-Party Services is no longer in effect. ED intends to update the DCL, and “the effective date of the revised final guidance letter will be at least six months after its publication.” ED also identified several activities that had received significant public comment that are not subject to TPS requirements, including study abroad programs, recruitment of foreign students not eligible for Title IV aid, clinical or externship opportunities closely monitored by personnel at the institution, and certain course sharing arrangements, dual or concurrent enrollment programs, and local police departments helping to compile and analyze crime statistics. Additionally, ED will remove the provision on foreign ownership of third-party servicers and may make further clarifications as it continues to review public comments.
Topics:
Accreditation, Authorizations, & Higher Education Act | Financial Aid, Scholarships, & Student Loans | Higher Education Act (HEA) | Students

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