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  • Date:

    Congressional Committee Report on Antisemitism on College Campuses (Oct. 31, 2024)

    The U.S. House of Representatives Committee on Education and the Workforce (Committee) published a Republican Staff Report titled, “Antisemitism on College Campuses Exposed.” The Report summarizes the Committee’s yearlong investigation into allegations of antisemitism at several postsecondary institutions and sets forth its four key findings, which the Committee wrote “demonstrate an environment hostile to Jewish students likely in violation of Title VI” but also noted were “not conclusive judgments on violations.” The Report includes a 200+ page appendix of selected materials acquired by the Committee through subpoena, forewarns of future expanded investigation, and calls for a “fundamental reassessment” of federal support for postsecondary institutions “that have failed to meet their obligations to protect Jewish students, faculty, and staff, and to maintain a safe and uninterrupted learning environment for all students.”   

    Topics:

    Discrimination, Accommodation, & Diversity | Governance | Government Relations & Community Affairs | Race and National Origin Discrimination | Religious Discrimination & Accommodation | Student Speech & Campus Unrest | Students

  • Date:

    U.S Dep’t of Education Disclosure of Related Party Transactions in Financial Statements (Oct. 31, 2024)

    The U.S. Department of Education Office of Federal Student Aid published a reminder to institutions regarding the requirement to disclose all related party transactions in audited financial statements and further explanation as to how institutions can comply with the requirements given recent guidance provided by the American Institute of Certified Public Accountants (AICPA). While new regulatory requirements concerning the related party transaction requirements went into effect July 1, 2024, the new regulations do not change the requirements for reporting the transactions, which have been in place since 1997. Instead, the new regulations require specific information on related party disclosures to clearly identify the related party being disclosed. Further, the new regulations require institutions to provide an affirmative disclosure that an institution had no related party relationships and transactions to disclose.  

    Topics:

    Accreditation, Authorizations, & Higher Education Act | Financial Aid, Scholarships, & Student Loans | Students

  • Date:

    2U, LLC v. Miguel Cardona, Secretary of Education (D.D.C. Oct. 21, 2024)

    Joint Status Report. Plaintiff, an online program management firm, brought claims against the U.S. Department of Education (the Department) regarding its February 2023 Dear Colleague Letter regarding Requirements and Responsibilities for Third-Party Services and Institutions (the DLC). Plaintiff alleged that the Department’s use of the sub-regulatory DCL to (1) expand the definition of third-party servicers (TPS) to include “entities performing the function of student recruiting and retention, the provision of software products and services involving Title IV administration activities, and the provision of educational content and instruction,” and (2) prohibit colleges and universities from contracting with third-party servicers located outside of the united States or entities “owned or operated by any individual who is not a U.S. Citizen or national or a lawful U.S. permanent resident,” exceeded its authority to make substantive changes without formally going through the federal rule-making process. The Joint Status Report states that the Department intends to rescind the DCL by November 18th.  

    Topics:

    Accreditation, Authorizations, & Higher Education Act | Financial Aid, Scholarships, & Student Loans | Higher Education Act (HEA) | Students

  • Date:

    U.S. Dep’t of Education Proposed Rules to Authorize Debt Relief (Oct. 25, 2024)

    The U.S. Department of Education (the Department) issued a Notice of Proposed Rulemaking (NPRM) that would authorize student debt relief to borrowers who struggle with high medical costs, childcare costs, natural disasters, and other financial hardships. The NPRM on Hardship (Unofficial), if finalized, would impact approximately eight million borrowers, and sets forth two potential pathways for relief. Option one codifies authority for the Secretary of Education (the Secretary) to grant individualized, automatic relief without an application on a one-time basis. The Department would glean qualified borrowers by applying seventeen non-exclusive factors to existing borrower data and consider relief for those with an 80% or greater chance of being in default within the next two years. Option two proposes a primarily application-based pathway to debt relief for both current and future borrowers based on a holistic assessment of their personal hardship. The thirty-day comment period will commence once the NPRM publishes in the Federal Register. The Department expects to finalize the new regulation in 2025. 

    Topics:

    Financial Aid, Scholarships, & Student Loans | Students

  • Date:

    Office of Federal Student Aid Announcement re Active Confirmation of TG/FT Numbers (SAIG Mailboxes) and Electronic Services User Accounts (Oct. 21, 2024)

    The U.S. Department of Education Office of Federal Student issued a new requirement for every organization enrolled in a Student Aid Internet Gateway (SAIG) account. Organizations must review and validate their TG/FT numbers and Electronic Services user accounts, including TG numbers with access to the National Student Loan Data System (NSLDS), Professional Access website, the Common Organization and Disbursement (COD) System, and all FAFSA Partner Portal and EDconnect user accounts. Third party servicers are also required to validate their organization’s SAIG mailboxes and Electronic Services accounts. Failure to accurately complete the process can result in loss of access to Federal Student Aid data systems, including services such as Institutional Student Information Record (ISIR) deliveries, ISIR requests, FAFSA corrections, and NSLDS enrollment reporting and updates. The deadline to complete the process is December 10th

    Topics:

    Accreditation, Authorizations, & Higher Education Act | Financial Aid, Scholarships, & Student Loans | Higher Education Act (HEA) | Students

  • Date:

    Choh v. Brown Univ. (D. Conn. Oct. 9, 2024)

    Opinion granting Defendants’ Motion to Dismiss. Plaintiffs, current and former student athletes, filed a putative class action, claiming a violation of Section 1 of the Sherman Act, 15 U.S.C. § 1 against Brown University, the Trustees of Columbia University in the City of New York, Cornell University, the Trustees of Dartmouth College, Harvard University, the Trustees of the University of Pennsylvania, Princeton University, Yale University, and the Ivy League Council of Presidents. Plaintiffs allege the Universities formed a price-fixing agreement, referred to by the Universities as “the Ivy League Agreement,” “not to provide athletic scholarships to their Division I Athletes and not to pay Ivy League Athletes any compensation (or reimbursement of education-related expenses).” Plaintiffs further allege the Agreement is per se illegal because the Universities are “horizontal competitors in the commercial activities in the Relevant service markets.” The Universities argued that they hold authority in setting rules for financial aid and compensation, and the ban on sports scholarship is meant to “foster campus cultures that do not prioritize athletics.” In finding that plaintiffs do not allege a cognizable antitrust violation, a restraint that violates the Rule of Reason, or the requirements for defining a plausible relevant market, the court wrote “at best, the plaintiffs’ allegations of anticompetitive effects relate to just some market participants, not effects in the market as a whole.”  

    Topics:

    Antitrust | Athletics & Sports | Financial Aid, Scholarships, & Student Loans | Students | Taxes & Finances

  • Date:

    U.S. Department of Education Announces Successful Beta 1 Testing for the 2025–26 FAFSA form as Beta 2 Testing Begins (Oct. 16, 2024)

    The U.S. Department of Education announced the launch of the second stage of testing (Beta 2), for the 2025-26 Free Application for Federal Student Aid (FAFSA). During the first stage of testing, (Beta 1) over 650 students successfully submitted applications; 586 institutions received 6,266 Institutional Student Information Records (ISIRs) generated by applications; and dozens of student corrections were successfully completed. During Beta 2, participating institutions will ask students to submit the FAFSA form as returning students for the 2025-26 cycle and begin downloading and testing ISIRs to the extent their financial aid systems are able to do so. Beta 1 testing results can be found at www.FAFSA.gov/beta.  

    Topics:

    Financial Aid, Scholarships, & Student Loans | Students

  • Date:

    Missouri v. Department of Education (E.D. Mo. Oct. 3, 2024)

    Memorandum and Order granting Plaintiffs’ Motion for Preliminary Injunction. Plaintiffs, the States of Missouri, Arkansas, Florida, North Dakota, Ohio, and Oklahoma were granted a Temporary Restraining Order (TRO) entered by the U.S. District Court for the Southern District of Georgia on September 5, 2024, pertaining to their claims that the U.S. Secretary of Education was unlawfully trying to mass cancel hundreds of billions of dollars in student loan debt. After the TRO was entered, Georgia was dismissed from the suit based on a lack of standing and venue was transferred to the U.S. District for the Eastern District of Missouri, which took up the as yet undecided motion for preliminary injunction. Relying on Missouri v. Biden, 112 F.4th 531 (8th Cir. 2024), the court reasoned that “irreparable harm to the Plaintiffs will occur if Defendants wrongfully and unlawfully eliminate the debt at issue” and that permitting the Department to eliminate student loan debt now would also prevent subsequent appellate review. 

    Topics:

    Accreditation, Authorizations, & Higher Education Act | Financial Aid, Scholarships, & Student Loans | Higher Education Act (HEA) | Students

  • Date:

    Doe v. Rutgers, The State Univ. of N.J. (D. N.J. Sep. 27, 2024) (unpub.)

    Opinion denying Defendant’s Motion to Dismiss. Plaintiff, a former undergraduate student at Rutgers University brought Title IX claims against the University alleging it selectively enforced its Title IX policies against plaintiff and failed to investigate allegations that he made. Plaintiff also alleged that the University reached an erroneous decision when it found him responsible for violating University policy, due to his presumed innocence. While a student, plaintiff was in a relationship with Jane Doe. Following a breakup between the two, plaintiff learned that Doe was telling professors and peers that plaintiff allegedly sexually assaulted and harassed her. Plaintiff took a leave of absence, but prior to his return, he purportedly began receiving threats from other students who had learned of Doe’s allegations. After a live hearing, a third-party decisionmaker (TPD) found plaintiff not responsible for the original charge of domestic violence under any University policy but responsible for dating violence and stalking in violation of the University’s Title IX Policy and suspended him for two years. Plaintiff alleged that the University failed to follow its Title IX Policy when during its investigation he disclosed that Doe assaulted him at a party, but the Title IX coordinator failed to file a formal complaint. Plaintiff also alleged that he informed two professors that the “rumors” Doe shared were false and that he received threats of physical violence, but neither reported the conduct. Further, the chair of the University’s theater department purportedly warned plaintiff that it may not be safe for him to return to campus due to the threats, but similarly, failed to report them to the Title IX coordinator. In denying the University’s motion and permitting plaintiff’s claims to proceed, the court reasoned that plaintiff’s choice to forgo filing a formal complaint did not justify differential treatment of the cross-complaints between the two students under the Third Circuit’s Princeton decision, and that “though anti-male bias is not the only plausible explanation for the university’s conduct, or even the most plausible[,] … alternative explanations are not fatal to [the] ability to survive a Rule 12(b)(6) motion to dismiss” (internal cites omitted). Finally, the court found that plaintiff sufficiently alleged that the TPD was influenced by anti-male bias citing rulings barring him from asking a witness about their romantic relationship with the plaintiff, allowing witnesses to provide supplemental written statements, and permitting Doe to introduce evidence regarding plaintiff’s mental health and medical history in violation of University Policy.  

    Topics:

    Students | Title IX & Student Sexual Misconduct

  • Date:

    Zavada v. E. Stroudsburg Univ. (M.D. Pa. Sep. 26, 2024)

    Memorandum denying Defendant’s Motion to Dismiss. Plaintiff, a current student at East Stroudsburg University, brought claims against the University and its Student Misconduct Official, alleging that the University failed to take meaningful action following her report of inappropriate conduct by another student. In addition to her deliberate indifference claims, plaintiff brought equal protections claims, failure to train, and Policy, Practice, or Custom of “One Free Title IX Violation.” Plaintiff alleged that as a result of the University’s actions and inactions: (1) plaintiff was sexually harassed by another student; (2) University personnel had “actual knowledge” of harassment due to her visits to the Title IX office and her attempts to report the incidents to resident assistants, Title IX coordinators, and student misconduct officials; (3) the University and personnel were “deliberately indifferent” to the harassment; and (4) the harassment deprived plaintiff of access to educational opportunities and benefits. According to her allegations, plaintiff experienced multiple harassing encounters with another student and reported the onset of the harassment to the Student Misconduct Official, who took no action in response. Thereafter, plaintiff obtained a no-contact order and met with the University’s Title IX coordinator who purportedly failed to explain plaintiff’s rights, despite her request to submit a formal complaint. Then, she asserts that while her complaint regarding the initial incident was delayed for multiple months, plaintiff experienced additional harassment, which she reported to police but the University neither reprimanded the student for violating the no-contact order, nor informed plaintiff of her right to file another Title IX complaint. Subsequently, plaintiff moved out of her dorm for fear of her safety since the University declined to relocate the other student. Finally, plaintiff alleged that the Student Misconduct Official questioned the truthfulness of her allegations. The court found that plaintiff’s allegations, taken as true at this stage of litigation, constituted sufficient evidence of official University policy that is at least partly responsible for plaintiff’s second assault, including her claim that another student had also made sexual harassment reports against the student who allegedly harassed plaintiff, to which the University also allegedly failed to respond.  

    Topics:

    Students | Title IX & Student Sexual Misconduct