Major Updates

• Deadline March 30: Public Comment on Third Party Servicers – Institutional Members Encouraged to Weigh In
  The Department has updated Third-Party Servicer guidance to clarify when a servicer is considered as such, and would be privy to additional data and regulation with compliance for federal rules and regulations. The definitions have been broadened to include recruiting, teaching and learning, as well as software providers. They are also implementing a ban on foreign held or based Third-Party Servicers. Comments are open until March 30th for this guidance. The Department is asking institutions to report any arrangements that have not been previously reported to them by September 1, also the date the guidance will go into effect. Read more.

• The Department of Education Announces Public Hearings April 11-13 on Higher Education Rulemaking
  The US Department of Education will hold virtual public hearings on April 11-13 to hear from the public on potential updates for this fall’s rulemaking sessions. The Department’s focus is on a number of topics, but most important to this community are: Institutional eligibility, including State authorization; third-party servicers and related issues; and the definition of distance education as it pertains to clock hour programs and reporting students who enroll primarily online. The written comment period ends April 13, and more details, including how to take part in the virtual public hearings, can be found here. For details on the negotiated rulemaking process at the Department, here are some FAQs.  Read more.

• Education Department Announces Secret Shopping of Institutions to Find Predatory Practices
  The US Department of Education announced March 14 that they will begin to use secret shoppers as a means to identify institutions that are not in compliance with recruitment, enrollment, financial aid, and other items. The goal of the Department is to help identify potentially misleading or predatory methods used to recruit and/or enroll students. Federal Student Aid Chief Operating Officer Richard Cordray noted that “Secret shopping is another tool in FSA’s toolbox as we expand our oversight work to hold predatory schools accountable. Our focus—as always—is to ensure that students, borrowers, families, and taxpayers are not being preyed upon to make a quick buck.” We encourage our institutions to review all enrollment and recruitment practices that are part of your programs to make sure they are aligned with institutional Title IV eligibility guidelines. Read more. 

Other News

• Republican Effort To Repeal Biden’s Student Loan Forgiveness Plan Gains Steam (Forbes)

• The Role of Politics in Where Students Want to Go to College (Inside Higher Ed)