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  • 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:

    Certiorari Granted in Multiple Cases re Venue to Challenge Certain Federal Agency Actions (Oct. 21, 2024)

    The U.S. Supreme Court granted Certiorari in a trio of cases originating from the Fifth and Tenth Circuits. Oklahoma v. EPA, Pacificorp v. EPA, and EPA v. Calumet Shreveport RFG, all involve challenges to regulations issued by the Environmental Protection Agency (EPA) under the Clean Air Act. While the Fifth Circuit considered claims before it on the merits, the Tenth Circuit granted the EPA’s request to transfer venue to the DC Circuit Court, creating a circuit split. The U.S. Supreme Court accepted cert to resolve the question of when venue is necessary in the DC Circuit to resolve challenges to “nationally applicable regulations,” and actions with “nationwide scope or effect,” rather than before a regional U.S. Court of Appeals for those matters that are “locally or regionally applicable.” The cases are likely to be argued in late February or March of 2025.  

    Topics:

    Accreditation, Authorizations, & Higher Education Act | Higher Education Act (HEA)

  • 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 Educational Technology, Empowering Education Leaders: A Toolkit for Safe, Ethical, and Equitable AI Integration (Oct. 25, 2024)

    The U.S. Department of Education Office of Educational Technology published a toolkit for safe, ethical, and equitable AI integration titled Empowering Education Leaders (the Toolkit). The Toolkit is “designed to help educational leaders make critical decisions about incorporating AI applications into student learning and the instructional core.” The Toolkit covers mitigating risks in safeguarding student privacy, security, and non-discrimination; building a strategy for AI integration in the instructional core; and maximizing opportunity and guiding the effective use and evaluation of AI. 

    Topics:

    Cybersecurity | Ethics | Technology

  • 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:

    ACE Updated Brief on Understanding College and University Endowments (Oct. 23, 2024)

    The American Council on Education released an updated version of its brief regarding Understanding College and University Endowments (the Brief). The Brief, which was published in preparation for the upcoming significant tax reform effort Congress is preparing for 2025, examines how endowment funds support an institution’s educational mission, enhance access, and bolster innovation. It includes data from the 2023 NACUBO Commonfund Study of Endowments, notably finding that 66% of endowment spending in FY 2023 was on student financial aid and academic programs.  

    Topics:

    Accreditation, Authorizations, & Higher Education Act

  • Date:

    NACUBO On Your Side (Oct. 21, 2024)

    Summary from the National Association of College and University business Officers on legislative and regulatory actions that occurred from October 8-28, 2024. This summary highlights the letter that was recently sent to Congress from the American Council on Education and 26 other associations urging it to remove provisions from the defense bill; a letter sent to the Education Secretary and the Office of Management and Budget Director from the Student Aid Alliance and 40 other organizations requesting increase to the maximum Pell award and other campus based aid programs; and that registration is open for NACUBO’s post-election recap and insights webinar scheduled for November 19th. 

    Topics:

    Accreditation, Authorizations, & Higher Education Act

  • Date:

    GASB Issues Statement 104 on Disclosure of Certain Capital Assets (Oct. 17, 2024)

    The Governmental Accounting Standards Board (GASB) announced its issuance of Statement No. 104 on Disclosure of Certain Capital Assets (the Statement). This Statement will require certain capital assets to be disclosed separately for the purposes of note disclosures. Specifically, disclosure requirements for intangible capital assets relating to leases, public-private partnerships, and subscription-based information technology arrangements (SBITA). Finally, the Statement introduces a new disclosure for capital assets held for sale.  

    Topics:

    Taxes & Finances

  • Date:

    DeVore v. Univ. of Ky. Bd. of Trs. (6th Cir. Oct. 11, 2024)

    Opinion affirming summary judgment in favor of the University. Plaintiff, a former employee of the University of Kentucky, retired from the University to avoid compliance with its COVID-19 test-or-vaccinate policy. Plaintiff brought claims against the University alleging failure to accommodate religious beliefs and violation of Title VII. In granting summary judgment in favor of the University, the district court held that plaintiff failed to “show that she holds a religious belief that conflicts with an employment requirement.” In conducting a de novo review, the Sixth Circuit found plaintiff’s claims reflect her “personal moral code” rather than a sincere religious belief, specifically noting that despite over a year of litigation, plaintiff never identified what her religion was on the record. Thus, the Sixth Circuit affirmed the judgment of the district court based on plaintiff’s inability to demonstrate a connection between her religious principles and her allegations that the University’s COVID-19 policies were invasive, manipulative, or coercive. 

    Topics:

    Campus Police, Safety, & Crisis Management | Coronavirus | Discrimination, Accommodation, & Diversity | Religious Discrimination & Accommodation

  • Date:

    Deiter v. Tenn. Tech. Univ. (M.D. Tenn. Oct. 11, 2024)

    Memorandum Opinion denying Defendant’s Motion for Summary Judgment. Plaintiff, a tenured Associate Professor at Tennessee Technological University brought Title VII claims alleging employment sex discrimination following denial of a promotion from Associate Professor to Full Professor. Plaintiff applied for promotion in the fall of 2020. She received a majority vote recommending her for the promotion from the English Department, as well as a recommendation from the interim chair of the department, and the Dean of the College of Arts and Sciences. The Provost recommended against plaintiff’s promotion, reasoning that “there is not adequate documented evidence to satisfy the [University] Policy criteria,” specifically in reference to plaintiff’s scholarship. Following the Provost’s recommendation, the President of the University ultimately denied her application, wrote that plaintiff’s teaching, service, and outreach category was sufficient for promotion, but that the quantity and frequency of her scholarship – two published scholarly articles and a book review over her five-year tenure at the University – was concerning. Plaintiff wrote. Plaintiff appealed to the Faculty Affairs Committee, which found procedural errors in the Provost’s review and unanimously voted to recommend the Provost’s denial be overturned and plaintiff be promoted. Notwithstanding, the President rejected the recommendation from the Faculty Affairs Committee. At the same time, plaintiff alleged two of her male colleagues with fewer achievements were promoted. The court found plaintiff sufficiently demonstrated she was qualified for promotion, citing the University’s President’s statement that her teaching, service, and outreach record was sufficient for promotion. Further, while the President and Provost seemed to rest their decision on plaintiff’s scholarship, the University policy contained no publication quota for the scholarship portion of the promotion criteria. Finally, the court found plaintiff sufficiently presented evidence to establish her male colleagues were (1) not members of the protected class due to their gender; and (2) similarly-situated to plaintiff as they sought the same promotion, during the same timeframe, within the same department, subject to the same policies and ultimate decision maker (the University President), obtained the same peer support, and were “weak in scholarship.”

    Topics:

    Discrimination, Accommodation, & Diversity | Employee Sexual Misconduct | Sex Discrimination