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
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
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
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
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 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. Comments will be due 30 days from the date of publication in the Federal Register.
Topics:
Accreditation, Authorizations, & Higher Education Act | Higher Education Act (HEA) | Program Integrity & Gainful Employment
