Major Updates

Conference Committee Nixes Short-Term Job Training Pell Grants from Final Compromise Computer Chip Bill
After months of internal negotiations between a conference committee working out differences between the House and Senate passed legislation focusing on competitiveness with China, a much narrower compromise bill has come forth. Smaller than the House of Representatives’ original bill, the compromise legislation removed entirely a short-term job training Pell grant program, which had provisions restricting any fully online programs, or proprietary institutions from receiving eligibility for those dollars. UPCEA advocated for the inclusion of a short-term job training Pell grant program, but only if it was inclusive of fully online programs. Read more.

 

US Department of Education Releases Regulations for Public Comment On Multiple Items
The public is invited to comment on the proposed regulations from the Department. We encourage you to flag for your institution’s government affairs team to review the regulations, as well as take any personal action you desire as a concerned citizen (but not representing your school unless you have the proper authority to do so). The proposed regulations will be finalized in the fall, with an implementation date no later than July 1, 2023.

The list of regulations includes:

• Student Loan Relief Programs Including PSLF, Borrower Defense to Repayment, School Closures (Comments Due August 12)
  New proposed regulations for items such as student loan discharge programs, alleviating student loan debt burdens for borrowers whose schools closed or lied to them, who are permanently disabled, and for public service workers under the Public Service Loan Forgiveness (PSLF) program. In addition, the proposed regulations include Borrower Defense to Repayment tweaks, related to how students would be able to recoup dollars based on fraud or misrepresentations by institutions. The changes include providing an additional basis for a borrower defense claim based on aggressive and deceptive recruitment practices.
  
  Read more and make a comment.
  Department of Education Fact Sheet.

 

• 90/10 Rule, Second Chance Pell Grants for Prison Education Programs, and issues related to Changes of Ownership/Control (Comments Due August 26)

• • Distance Education Enrollments from Branch Campuses are Counted as Main Campus Enrollments

• • • Codifies that all branch campus distance education enrollments are counted as part of the main campus. This may already be how your institution operates, but we have heard that this could be problematic for some institutional reporting, administrative burden, and enrollment counts. Part of the comments the Department is seeking is about what period of time would be reasonable for full implementation of this requirement as proposed. 

• • Second Chance Pell Grant for Incarcerated Individuals  

• • • The proposed regulation would treat a Federal, State, or local penitentiary, prison, jail, reformatory, work farm, juvenile justice facility or other similar correctional institution as an “additional location” for purposes of § 600.2, even if a student receives instruction primarily through distance education or correspondence courses at that location. 

• • • Institutions would obtain approval from their accrediting agencies and from the Secretary only for the first eligible prison education program at each of the first two additional locations, and then would simply report subsequent program offerings to the Secretary.

• • • Qualifying prison education programs would not need to lead to licensure or certification, but if they do, the programs would need to be designed to meet those requirements in the state where the correctional facility is located (or where most individuals will reside after release, for a federal prison). The programs also need to lead to occupations without state or federal prohibitions on the licensure or employment of formerly incarcerated individuals.  

• • 90/10 Rule Changes

• • • Codifies regulations agreed upon during negotiated rulemaking, requiring all federally funded for-profit colleges to get at least 10 percent of their institutional revenue from non-federal sources.  

• • Changes in Ownership/Nonprofit Eligibility 

• • • A new proposed change may cause an institution to go from nonprofit to for-profit status. One of the proposed changes includes for those institutions who have revenue sharing agreements, when the compensation is inconsistent with the market value for the services provided they would be considered a for-profit institution. 

Read more and make a comment.
Department of Education Fact Sheet.

 

• Third Party Servicer Data Collection (Comments Due August 29)
  “The Department of Education (the Department) is seeking an revision of the OMB approval of a Third Party Servicer Data Form. This form collects information from third party servicers. This form is used to validate the information reported to the Department by higher education institutions about the third party servicers that administer one or more aspects of the administration of the Title IV, HEA programs on an institution’s behalf. This form also collects additional information required for effective oversight of these entities.” (US Department of Education) Read more and make a comment.

 

Other News

• Congress Eyes Income-Share Agreement Reform, Again (Inside Higher Ed)
  
• Education Department Issues New Guidance to Prevent ‘Accreditation Shopping’ (Higher Ed Dive)
  
• House committee: End loophole allowing tuition-share agreements between OPMs and colleges (Higher Ed Dive) 
• The Education Department has a plan for canceling student debt — if Biden gives the word (Politico)