Major Updates

ED Sends Distance Ed, R2T4, TRIO Rules to OIRA for Final Review Before Release and Public Comment
The US Department of Education has advanced a set of proposed regulations to the Office of Management and Budget’s Office of Information and Regulatory Affairs (OIRA) for review. This submission marks the final procedural step before the proposed rules are made available for public comment. The proposed regulations encompass several key areas previously addressed during negotiated rulemaking sessions earlier this year, specifically focusing on Distance Education, Return of Title IV (R2T4), and TRIO Programs.

Absent from this submission are the topics of State Authorization, Cash Management, and Accreditation. We anticipate those topics’ proposed regulatory changes should be released at a future date. We continue to monitor the situation closely, particularly to see if any of our recommendations, noted below, which were submitted earlier this month in collaboration with other organizations, are incorporated into the proposed distance education regulations. We will provide updates as new information becomes available, including when the regulations are released, and open for public comment.

 

Coalition Letter on Proposed Distance Education Regulations, Offering Alternatives 

We joined a letter to the Department of Education addressing proposed regulations that would affect distance education programs. In this letter, we expressed our concerns regarding the recent proposed changes to: 

  • Enact mandatory attendance-taking in all distance education courses 
  • Not allowing distance education for clock hour courses

We are worried about the institutional burdens as well as how it will affect students’ outcomes, especially for marginalized communities. With our peer organizations (WCET, OLC, QM, DEAC, and AACC) we proposed thoughtful alternatives within the letter. We all are committed to ensuring that any new regulations strengthen—rather than weaken—student access to high-quality distance education programs. There also were a number of provisions proposed which we support, and highlighted those and a few caveats within the letter. We encourage you to share with your institutional administration as well as contact elected officials and share our letter and continue to stay informed. 

 

Other News

 

  • US Department of Education Opens Applications for Basic Needs for Postsecondary Students program (Federal Register)
    Applications for new awards are due by August 5th. The program provides grants to eligible institutions of higher education (IHEs), or a consortia or system of such institutions, to advance systemic and sustainable solutions to student basic needs insecurity through support programs that address the basic needs of students and to report on practices that improve outcomes for students. 

 

Major Updates

  • UPCEA Co-Signs Request to Congress on FAFSA Fix Proposal
    In a letter led by the American Council on Education (ACE), UPCEA joined with other organizations to seek legislation for crucial adjustments to the FAFSA process to enhance its efficiency and fairness. Key proposals include ensuring institutions are not held liable for discrepancies in determining student aid eligibility, extending the ability to transfer unspent Federal Work-Study funds, establishing an earlier statutory deadline for the FAFSA release, requiring comprehensive assessments of recent changes affecting students’ financial aid, among many others. Read the full letter.

 

  • State Authorization Reciprocity Proposals | Take Action and Read Our Letter to the Department of Education
    Along with our esteemed partners, UPCEA this month joined with WCET, QM, OLC, NACUBO and American Association of Community Colleges to send a letter to the US Department of Education about recent proposals on State Authorization reciprocity expressing our concerns. This letter dives deep into the issues impacting students and institutions that these proposed regulations would create.

    The Department of Education is planning to implement new regulations that will profoundly impact online education and the future of our students. The proposed rules could alter state authorization reciprocity agreements for institutions participating in SARA, particularly affecting those with over 500 students in another state. The proposed regulations also may impose new requirements to abide by laws related to closure in each state. We encourage you to reach out to your federal and state officials, as well as institutional leadership. Please read, share, and utilize this letter as a basis for your outreach. Your voice is crucial in shaping the future of online education. Read our letter.

 

  • Ricky LaFosse Joins UPCEA as Senior Policy Fellow
    Ricky LaFosse has been appointed as the new Senior Policy Fellow at UPCEA, further strengthening our commitment to excellence in policy and compliance in online and professional education. With over 10 years of experience in higher education and online learning compliance, LaFosse brings a wealth of knowledge and expertise to the role. LaFosse currently serves as the Associate Director of Compliance and Policy at the University of Michigan’s Center for Academic Innovation. His extensive background in higher education policy, including serving as an advisor to multiple national organizations and former chair of UPCEA’s Policy Committee, prepared him for the fellowship at UPCEA. His deep understanding of accreditation processes, compliance issues, and government relations will be invaluable in developing and implementing strategies to advance UPCEA’s policy priorities. We look forward to seeing the positive impact of his fellowship on our organization and the broader higher education community we serve.

 

Other News

Major Updates

 

Urgent: Take Action on Proposed State Authorization Reciprocity Regulations
The Department of Education is set to introduce new regulations that could significantly alter state authorization reciprocity agreements, critically affecting online education and our students’ futures. Following the lack of consensus in recent negotiated rulemaking sessions, the forthcoming rules are expected to impose stricter criteria on institutions (those taking part in reciprocity via SARA): particularly those with over 500 students in another state; and require adherence to state laws regarding closure. This will increase operational constraints and compliance costs. We believe these changes could not only hinder the growth and quality of online education of all students but also disproportionately impact marginalized communities by increasing educational costs and limiting program availability.

We are sending a letter to the Department with our colleagues at WCET, QM, OLC, NACUBO and AACC detailing our major concerns, and which goes more in depth on the specific issues raised by this proposed regulation. We encourage you to read and share this letter, and feel free to utilize it as a framework for your own outreach, both internally and externally.

As these regulations are likely to reshape the landscape of higher education, your proactive engagement is essential. We urge you to communicate with your institutional administration and state and federal government officials to share your concerns and propose balanced regulatory measures. This effort is crucial to ensuring regulations support rather than hinder the provision of high-quality online education. This is the time to spread awareness and to influence these impending regulations to ensure they fairly represent the interests and needs of our education communities. Many of us remember a time before State Authorization reciprocity, where a patchwork of approvals and state processes weighed down our institutional budgets and online operations.

It is crucial to express how these proposed regulations could negatively impact not only your institution but also the students you serve. We are committed to supporting your advocacy efforts and will continue to provide updates and resources through our Policy Matters newsletters.


Updates to Gainful Employment Regulations

In a significant move, the Department of Education has acknowledged the additional time institutions need to effectively compile the necessary data for reporting for the new Financial Value Transparency (FVT) and Gainful Employment (GE) regulations, and have decided to extend the timing for required data reporting. 

    • Institutions will have the ability to start reporting FVT/GE data through the National Student Loan Data System (NSLDS) starting July 1, 2024.
    • Institutions will have until October 1, 2024 to provide all required reporting. The Department is providing institutions additional time to report such information by allowing institutions to submit the information that was previously due by July 31, 2024 to be submitted by no later than October 1, 2024.

This extension comes after recent feedback from various educational organizations, including UPCEA, which emphasized the need for additional time to implement these complex regulations effectively. For more insights and guidance, we encourage you to review the announcement on the FSA website and the comprehensive ‘Dear Colleague’ letter. 

  • Implementation of Program Length Restrictions for Gainful Employment (GE) Programs
    The Department of Education announced responses to questions from institutions related to Certification Procedures regulations from October 2023 as it relates to Gainful Employment (GE) programs. These responses may have significant impacts to institutions’ GE programs. The Department clarified there is now set a cap on the allowable hours in GE programs, to “limit the number of hours in a GE program to the greater of the minimum number of clock hours, credit hours, or the equivalent required for training in the recognized occupation for which the program prepares the student, as established by the state in which the institution is located or, in some cases, another state.” This may necessitate a reduction in credit or clock hours for some institutions to maintain eligibility for Title IV funding. Additionally, certain GE programs might lose their eligibility for the Federal Pell Grant. To continue participation in the William D. Ford Direct Loan program, these programs must meet specific placement and completion rate criteria. Read more.



Other News

Major Updates

Negotiated Rulemaking Does Not Reach Consensus on Distance Education, State Authorization, Accreditation, and Other Topics

The recent session of negotiated rulemaking at the Department of Education on Program Integrity and Institutional Quality concluded without reaching a consensus on several pivotal Issue Papers. The discussions were marred by considerable disagreement on key topics such as revisions to Distance Education, State Authorization, and Accreditation protocols. There were a few topics which caused disagreement, including: the mandate for recording attendance in fully online courses to accurately determine withdrawal dates for virtual learners; the cash management change compelling institutions to adopt an “opt-in” approach rather than “opt-out” for students to approve bundling textbooks with tuition and fees—also known as “inclusive access”. There also was much disagreement about oversight of online education programs and the intricacies of state authorization changes, including concerns about reciprocity agreements, complaint processes, application of state laws related to closure and additional direct authorization thresholds, including a new 500 student threshold which would require direct authorization from any state where an institution enrolls more than 500 students in the two most recent years.

Given the impasse, the Department of Education now possesses the authority to draft proposed regulatory changes independently. This means the Department is likely to formulate and present its regulatory proposals for public scrutiny and comment within the next few months. This must be done before they evolve into final regulations, which if finalized before November 1 of this year, some may be implemented as soon as July 1, 2025. Ahead of this proposal being released, we encourage institutions to discuss these proposed changes and activities that occurred during negotiated rulemaking with their institutional government affairs offices. They may also consider talking with state officials as it relates to the state authorization proposals which could significantly impact how institutions deliver education across state lines, and how states would need to deal with authorization processes. View the negotiated rulemaking sessions and view the proposal papers.

 

Bipartisan Competency-Based Education Bill Introduced in House of Representatives
In a significant step towards reforming higher education, a bipartisan group of the House of Representatives, Glenn Grothman (R-WI), Brittany Pettersen (D-CO), and Burgess Owens (R-UT) have introduced the Empowering Learners Through Competency-Based Education Act. This bipartisan bill is designed to support universities in adopting competency-based education (CBE) models, which prioritize learning outcomes over traditional seat-time benchmarks. The bill would: define CBE programs; require the Department of Education to collect, verify, and make publicly available important program outcomes information on CBE programs; and establish a CBE demonstration project at the Department of Education to assist institutions in developing CBE programs. CBE allows students to advance upon mastering course material, potentially accelerating their path to degree completion and entry into the workforce with reduced debt burdens. The bill received endorsements from notable institutions like Western Governors University and Southern New Hampshire University’s Center for Higher Education Policy and Practice. Read more.

 

Gainful Employment/Financial Value Transparency Reporting Public Comment Due April 22

The Department of Education has opened a public comment period regarding the Gainful Employment/Financial Value Transparency reporting requirements. With a deadline of April 22, institutions, stakeholders, and the public are invited to provide feedback to the Department on these reporting requirements. This includes providing input on the Department’s data usage, and suggestions for minimizing reporting burdens. The regulations, negotiated in 2022 and finalized in 2023, are applicable to both gainful employment (GE) and non-GE programs. Engagement in this comment period is a vital opportunity for educational institutions to influence the development of policies that will shape a significant regulatory change which goes into effect July 1, 2024. Your input can help the Department understand and refine the collection process. Read more and submit a public comment here.

Other News

Major Updates

Negotiated Rulemaking on State Authorization, Distance Education, Accreditation and Other Topics Continues
In early February a session was held in continuation of the US Department of Education’s crucial Negotiated Rulemaking on Program Integrity and Institutional Quality, with the second of three sessions running from February 5-8, and the third and final session scheduled March 4-7. Following a kickoff in early January, stakeholders reconvened to further explore and refine proposed regulatory changes across key areas of higher education. These include state authorization, distance education, accreditation, and more. Noteworthy proposals under discussion entail stricter accreditation requirements for new programs as well as visits to all locations; modifications to state authorization including a complaint process and governance requirements for reciprocity agreement organizations; as well as significant adjustments to distance education practices including requiring of taking attendance in all fully online courses. These proposals are the Department’s stance for negotiators to continue to refine and change during rulemaking. Each of the sessions allows for public comment periods, allowing for broader community engagement. Participants and interested parties are encouraged to engage in this vital process, with further details and registration information for the public virtual session attendance available on the Department’s Negotiated Rulemaking site. Learn more. 


Unclear on what federal negotiated rulemaking entails? Check out our newly released Policy Matters: Primers and Insights brief: An Introduction to Negotiated Rulemaking for Higher Education.

 

Bipartisan Workforce Pell Bill Considered Before the US House of Representatives

This week, the US House of Representatives is scheduled to vote on the Bipartisan Workforce Pell Bill, marking a significant step towards reforming education and workforce development financial aid. This bill seeks to expand the Pell Grant program, traditionally aimed at providing financial aid for undergraduate students and longer-term programs, to now include short-term job training programs. The bipartisan support for this bill underscores a more recent recognition of the evolving needs of the American workforce and students. By extending Pell Grants to cover short-term workforce training programs, the legislation aims to open new pathways to high-quality employment for millions of Americans, addressing the skills gap in many industries. There have been some concerns about how the bill is paid for and how certain institutions are categorized to help cover the costs of the bill. These concerns and other details are being closely monitored by those in the Senate who are considering their own legislation and actions on workforce Pell. 

 

Webinar Recording | Navigating Regulatory Changes in Higher Education
Hosted by the UPCEA Policy Committee and the Online Administration Network

Designed specifically for academic leaders, administrators, and legal and compliance officers, this session delves into the critical regulatory changes set to reshape online and professional continuing education beginning July 1, 2024. Our experts guide you through the intricacies of licensure notifications, financial responsibility standards, administrative capabilities, certification processes, and the latest in gainful employment guidelines. Additionally, gain insights into the current US Department of Education negotiated rulemaking sessions, focusing on state authorization, distance education, and accreditation. Equip your institution with the knowledge to navigate and adapt to the significant regulatory updates impacting online education. Discover the keys to successfully navigating the evolving regulatory landscape in higher education with our webinar recording.

 


Other News

 

 

Major Updates

Negotiated Rulemaking Session on Program Integrity and Institutional Quality Begins 

The U.S. Department of Education has started a Negotiated Rulemaking Session focused on Program Integrity and Institutional Quality. The first session took place January 8–11. The second session will occur from February 5–8, and the final session is scheduled for March 4–7. These sessions will delve into pivotal areas of higher education regulation on the following topics State Authorization, Distance Education, Return to Title IV, Cash Management, and Accreditation, among others which can be found under the “Materials” section on the Department’s Negotiated Rulemaking site. A TRIO Subcommittee meeting also occurred January 12 and is slated for February 9. The Department has released their second round of issue papers on their Negotiated Rulemaking site (linked via the topics above). Some notable suggestions the Department has proposed to change in regulation which are relevant to the UPCEA community are: 

  • Accreditation changes including:
    • Requiring institutional accreditor approval if the institution adds any non-degree or degree-granting program at a level not previously offered by the institution
    • Requiring institutional accreditor approval if the program that the agency has previously approved to operate achieves or exceeds a 50 percent threshold for distance education offerings (means that at least 50 percent of the institution’s students are enrolled in at least one course offered through distance education; or offers at least 50 percent of its courses through distance education.)
    • Requiring accreditors to visit and approve all physical and branch campus locations of an institution.
  • State Authorization alterations including: 
    • Requiring reciprocity agreements to require institutions to have a system to report student complaints to the State in which the student resides, and to provide those complaints to the organizations that administer the agreement.
    • Requiring State authorization reciprocity agreements governing boards only include representation from State employees – including regulatory bodies, enforcement agencies, attorneys general, and licensing bodies – and members of the public.
    • Allowing that, outside of educational authorization, for reciprocity agreements to not prohibit states to apply general education laws to institutions.

  • Distance Education alterations including:
    • Removing the allowance for clock-hour programs provided via distance education to be offered through asynchronous learning.
    • Creating a virtual location for institutions that includes all students who are being instructed primarily through distance education.
    • Specifying in the definition of “a week of instructional time” that asynchronous coursework via distance education is limited to credit-hour programs.
    • Requiring schools to take attendance for fully distance education courses for purposes of Return to Title IV. During the first rulemaking session, the Department clarified that for fully distance education students, merely logging in is not a form of academic attendance, but would need to be paired with some sort of other activity. They also clarified that for those programs that are hybrid, they would not require all in-person courses related to this provision to be attendance-taking.

  • Other changes including: 
    • Eliminating the provision allowing institutions to include the cost of books and supplies as part of tuition and fees, unless there is a compelling health or safety reason to do so. This change could impact “inclusive access”. Current regulations permit schools to automatically charge students for books and supplies as part of tuition and fees, without student authorization, even when the materials can be obtained from a source other than the institution. The regulations permit these charges if the school has a contract with a third-party publisher or retailer, offers the books “below competitive market rates,” and gives students a way to opt out, so long as the student can obtain the books and supplies by the seventh day of the payment period. 

 

These proposals represent the Department’s suggested regulatory edits, which negotiators will scrutinize and potentially revise over the next two sessions. Each day of the full committee sessions will conclude with a 30-minute public comment period, with the exception of the final day. The subcommittee sessions, however, will not include a public comment segment. Interested parties wishing to provide public comments are advised to email [email protected] with their name and organizational affiliation, indicating their desire to participate in these crucial discussions. Registration is required to view the virtual sessions, and links to this registration, a list of the negotiators, and other resources are included below. 

 

UPCEA Policy Matters: Primers and Insights Launched with Intro to Online Regulatory Landscape and Overview of Negotiated Rulemaking

We are excited to introduce our latest resources, “Policy Matters: Primers and Insights,” designed to guide you through the complex policy frameworks crucial to higher education in the United States. In an era where online and professional continuing education programs are at the forefront of educational innovation, understanding the regulatory landscape is vital. “Policy Matters: Primers and Insights” offers a comprehensive introduction to foundational topics in federal legislation and regulations that have a significant impact on online and professional continuing education. This series is more than just a resource; it’s a roadmap to navigating the intricacies of policy that govern higher education. Whether you’re an administrator, educator, or policy maker, these insights will empower you to make informed decisions and contribute to the long-term success of your programs.

Our first two Primers and Insights are:

Stay ahead in the dynamic world of higher education. Embrace the opportunity to deepen your understanding of the policies shaping our programs and institutions. Learn more.

 

 

Upcoming Policy Webinars

 

  • February 21, 2024 | 2:00-3:00 PM ET
    Webinar | Navigating Regulatory Changes in Higher Education
    Hosted by the UPCEA Policy Committee + Online Administration Network
    Join us for a session focusing on the latest regulatory changes impacting online and professional continuing education taking effect July 1, 2024. This event will address key areas such as licensure notifications, financial responsibility standards, administrative capability, certification processes, and updated gainful employment guidelines. A quick update on current U.S. Department of Education negotiated rulemaking sessions focused on state authorization, distance education, and accreditation, as well as consideration of the regulatory landscape generally, will also be provided.

    The target audience for the webinar: academic leaders, administrators, and legal and compliance officers. The information offered will allow institutions to prepare for significant regulatory changes that will impact online education.
    Register.


Other News

Major Updates

Bipartisan Bills on Workforce Pell and WIOA Retooling Introduced in US House of Representatives

A bipartisan group of the U.S. House of Representatives has released the Bipartisan Workforce Pell Act, a bill to expand eligibility of Pell Grants for shorter-term programs; and separately, A Stronger Workforce for America Act, a bill making significant updates to the Workforce Innovation and Opportunity Act (WIOA). 

The Bipartisan Workforce Pell Act is the latest proposal from congressional leadership expanding Pell Grants for short-term education and training programs of at least 150 clock hours of instruction (or an equivalent number of credit hours), but less than 600 clock hours of instruction, offered during a minimum of eight weeks, but less than 15 weeks. While there have been a number of proposals in Congress over the last few years, the Bipartisan Workforce Pell Act sheds some of the most stark sticking points that past bills have faced, which included not allowing fully online programs or for-profit institutions to take part in the eligibility. Yet, the law has a funding plan meant to fund the expansion by reducing federal student loans to many colleges and universities affected by a tax on investment income, known as the ‘endowment tax’. Also, the current bill sets up some high bars for program eligibility, including requiring a program completion and job placement rate of 70% for each program, controlled calculations on tuition charged, and a wage floor for those who complete the program to have median earnings equal to or greater than high school graduates in their state. Oversight also includes a collective of the US Department of Education, state workforce boards, and accrediting agencies, and the programs must be provided exclusively by accredited and federally eligible institutions. 

The A Stronger Workforce for America Act provides the pathway to strengthen and build connections between employers and the workforce and training system, by updating WIOA and helping provide Americans with career access and advancement. While offering certain improvements, critics have expressed concerns that the bill might not sufficiently enhance the existing WIOA structure, which has been considered less than robust. Notable items the bill amends includes: 

  • Dedicating 50 percent of the adult and dislocated worker funding towards upskilling workers through “individual training accounts” (ITAs), on-the-job learning, and other employer-led skills development 
  • Simplifying the eligible training provider list (ETPL) to match skills and job demands, while enforcing performance standards to hold workforce boards accountable for positive participant outcomes
  • Fortifying a program to help individuals released from incarceration transitioning to employment
  • Offering clear information about awarded credentials, including details like who awards them, industry recognition, the skills they represent, and participants’ employment and earnings outcomes
  • Increased support for community college workforce education programs

Both bills have passed the House Education and Workforce Committee, however, the expected outcomes for both bills are unclear in the full House of Representatives, as well as the Senate. 

Bipartisan Workforce Pell Act

A Stronger Workforce for America Act

 

Today’s Students Coalition releases Equity Now Toolkit: Advancing racial equity in higher education through federal policy for today’s students
Today’s students of color face systemic inequities that are woven on campuses, in state halls, and in federal policies, and that are unfairly holding them back from achieving their goals. Despite the dedication and talent today’s students bring to classrooms across the nation, many are not succeeding due to outdated and inequitable federal policies, allowing race to predict success and postsecondary outcomes.

The Today’s Students Coalition’s (TSC) Equity Now Toolkit is a resource designed to guide and support our country’s advocates and leaders in addressing racial disparities in higher education. The reforms in this toolkit offer a wide array of changes that can help bridge racial equity gaps in postsecondary student access, success, and completion. In the toolkit, you will find:

  • Background information on racial equity and disparities in higher education outcomes;
  • An overview of policy reforms that leaders can use to close racial equity gaps; and
  • A list of resources readers can review to learn more about a particular issue.

Advancing racial equity in higher education should not be a partisan issue and must be championed by everyone. The TSC is deeply committed to working with policymakers on both sides of the aisle to enact change for the benefit of today’s students.

UPCEA is a proud contributor to this toolkit and a founding steering committee member of the Today’s Students Coalition.

 

Other News

  • Invite Your Students to the DC Student Summit
    Being held this coming March 3-5, the three-day DC Student Summit in our nation’s capital will equip students with the skills necessary to elevate their stories and lived experiences directly to federal policymakers. Led by the Today’s Students Coalition (of which UPCEA is a founding steering committee member) and LeadMN, students will have the opportunity to learn how to effectively share their stories with policymakers, learn about current hot topics in DC surrounding higher education, racial equity, and efforts to address students’ basic needs, as well as a day on the Hill meeting with Congressional offices. Space is limited, so make sure you share with interested students and encourage them to register soon! Learn more.

 

Major Updates

  • Distance Education, Online Student Reporting, State Authorization and Other Topics Announced for Early 2024 Negotiated Rulemaking
    The US Department of Education has announced a negotiated rulemaking session covering topics important to the UPCEA community including distance education, reporting for fully online students, as well as state authorization, among other topics. The announced sessions will take place early next year, occurring virtually on January 8-11, February 5-8, and March 4-7. The Department is seeking nominations for different stakeholder positions by December 13 of this year.

    The topics which will be discussed within these negotiated rulemaking sessions include:

    • Recognition of accrediting agencies and related issues
    • Institutional eligibility, including state authorization
    • The definition of distance education as it pertains to clock hour programs and reporting for students who enroll primarily online
    • Return of Title IV of Higher Education Act of 1965 funds
    • Cash management to address disbursement of student funds
    • Eligibility of TRIO Programs (which will also be included as part of subcommittee work on these issues)

Notably absent is the discussion on Third Party Servicers, which the Department has mentioned may be included in future negotiated rulemaking sessions. The Department indicated they will be issuing new guidance on this topic in early 2024.

Read the Department of Education’s Press Release.
See full details in the Federal Register.

 

  • Will the Feds Strip Colleges’ Funds Over Anti-Jewish, Muslim Bias? (Inside Higher Ed)
    “Amid the protests and incidents that have rocked college campuses since the start of the Israel-Hamas war, a cry has gone up from conservative politicians and groups for the federal government to pull federal funding from colleges and universities if they fail to quell antisemitism and protect their Jewish students.

    Republican presidential candidates and members of Congress have been especially vocal in calling for such punishment. ‘We’re not in the business of using taxpayer dollars to provide and nourish hate,’ said Utah Representative Burgess Owens, a Republican who chairs the House subcommittee on higher education, at the end of a hearing last week on campus antisemitism.

    ‘That is not the American way.’But stripping colleges of their access to federal funds would be an unprecedented step for the Education Department to take. It’s possible under the law, legal experts say, but it would only happen after a long and complex investigative process. However, Biden administration officials have said that they agree more action is needed to counter the recent rise in both antisemitism and Islamophobia on college campuses. And they have moved quickly to respond.” Read more.

  • Overhaul of Financial Aid Formula Will Boost Pell Grant Eligibility (Inside Higher Ed)
    “Nearly 220,000 students will gain eligibility for the Pell Grant, a key tool for helping low-income students access college, when the federal government finalizes revisions to the system for applying for financial aid later this year, according to a new report from the State Higher Education Executive Officers Association.

    The increase in Pell-eligible students could mean more than $617 million in additional federal aid going to students and colleges. About $29.8 billion was available for students in Pell Grant funding in 2023–24, according to federal budget documents.” Read more.

 

Other News

 

Major Updates

The Department of Education (ED) has released final rules on Ability to Benefit, Administrative Capability, Certification Procedures, and Financial Responsibility. These rules, part of negotiated rulemaking in early 2022, provide new requirements for programmatic accreditation, state licensure, and conforming with state laws when dealing with closure in the context of distance education. The Administration has stated these regulations were developed to protect taxpayers from the negative effects of sudden college closures and students from practices which would make their education less valuable. These rules will become effective on July 1, 2024.

A few of the final regulations that the UPCEA community should review and must comply with:

  • The former requirement on distance education programs was to identify for student disclosures those states where the program “meets”, “does not meet”, or “has not been determined” to meet that state’s licensure requirements. In the new rule, if a program is leading to licensure or certification the institution must provide lists indicating which states a program does and does not meet educational requirements for specific professional licenses or certifications. The new rule also eliminates the possibility to indicate that they have not determined this for certain states. Institutions can offer programs to students in states where the program does not meet requirements for licensure or certification if they provide an attestation from the student about their specific intended state of employment.
    • Institutions must notify students if the program’s curriculum does not meet state educational requirements for licensure or certification in the state where the student is located.
    • If an institution can’t determine whether or not their program meets the state requirements for licensure or certification, they cannot offer that program to students within that state.
    • The rule applies to new program entrants on or after the effective date of July 1, 2024, rather than being applied retroactively to students who are already enrolled in these programs.
  • One of the ever-in-flux rules for the online education community is determinations of student location for the purposes of distance education eligibility. The term “at the time of initial enrollment” was a point of concern and led to requests for clarification for the purposes of licensure and notifications. The Department clarified and pointed to State Authorization language for institutions , specifically the provision in § 600.9(c)(2)(iii) to determine the location for initial enrollment, and states “an institution must make a determination regarding the State in which a student is located at the time of the student’s initial enrollment in an educational program and, if applicable, upon formal receipt of information from the student, in accordance with the institution’s procedures, that the student’s location has changed to another State” and went on to say they are allowing institutional flexibility to determine how to structure a policy based on determining these changes.
  • The regulations require institutions to comply with state laws for any legal requirements related to school closures. The definition of “closure” includes requirements related to record retention policies, teach-out plans and/or agreements, as well as tuition recovery funds and/or surety bonds. The Department believes that this concrete and limited list removes ambiguity and aligns with policies and tools used by states to address closures.
    • There is still some confusion whether these new regulations may apply to schools participating in SARA. All schools may need to comply with each state’s laws in these matters. 

The regulations also have other significant new changes institutions may wish to review, such as restricting colleges’ ability to withhold transcripts for course credits paid with Federal money; and providing clear communications to students about how much financial aid they will receive. Also a new requirement states that within 45 days of the student finishing coursework, the institution must provide geographically accessible clinical or externship options that are required prior to the completion of a program (this does not apply to clinical experiences that occur after graduation, such as medical residencies).

View a full copy of the draft final regulations. The Department also put together their own fact sheet on the regulations, found here.

The Department of Education has stated it will “consider broader issues related to distance education and State authorization in future rulemaking efforts”. So, stay tuned for more proposals and regulations down the road!

 

Other News

Major Updates

 

  • New Gainful Employment and Financial Value Transparency Final Regulations Released – Effective July 1, 2024

    The US Department of Education has released final Gainful Employment and “Financial Value Transparency” regulations. The Gainful Employment (GE) regulations include new and higher bars for career programs and connecting outcomes to programs offered by private for-profit institutions as well as those who provide certificate and non degree programs at all types of colleges and universities. The included metrics are determined based on a “debt-to-earnings ratio” (the share of a graduate’s income to debt payments) and an “earnings premium” (whether more than half of the program’s graduates have higher earnings compared to those of high school graduates in their state who have never enrolled in postsecondary education). These calculations will work separately and together to determine whether an institution will be eligible for federal financial aid, as well as whether they need to warn students that the program does not meet these requirements, and is at risk of losing access to federal financial aid.     

    Separately, the Financial Value Transparency part of the regulations are not GE specific, and apply to all programs at all institutions. But, this application is markedly different from the GE regulations, as this area will not affect eligibility of federal financial aid. However, within these regulations is a new notification for any and all programs at institutions in which they do not meet the new standards, where students will be provided with disclosures and acknowledge that they are about to enter into a program which may have high debt burdens or may not make more than their peers who did not attend college and graduated high school in their state.The final GE and Financial Value Transparency regulations will be published officially on October 10, 2023. An unofficial copy of the regulations can be found here. A fact sheet from the Department of Education on the regulations can be found here. The Department also released comprehensive data on the estimated effects of the rule on most specific postsecondary programs in May. That information can be found here, along with a description of the data, and a data codebook.

    Those of you following along with Policy Matters may also have questions around the other topics which were originally packaged as part of the NPRM that the Department started with the proposed regulations topics, which in total, included: Financial Value Transparency and Gainful Employment, Financial Responsibility, Administrative Capability, Certification Procedures, and Ability to Benefit. There were some significant questions within the Certification Procedures relating to the applicability of NC SARA and state laws, as well as other concerns with state licensing requirements and Administrative Capability which was of concern to the UPCEA community. The Department has noted that the recent final regulations contain only provisions on Financial Value Transparency and GE, and they plan to publish another final rule with the remaining four topics at a later date.

 

 

  • Education Department Faces Potentially ‘Disruptive’ Shutdown (Inside Higher Ed)
    “A potential government shutdown could complicate the restart of student loan payments, efforts to issue final rules and the FAFSA update.The looming government shutdown could wreak havoc on the U.S. Education Department’s jam-packed fall plans. Student loan payments resume Sunday—the day after funding for the government will run out unless Congress acts this week—and the agency is set to start negotiations over a new plan for student loan forgiveness in a few weeks. Department staff members are also working to issue final rules on Title IX and gainful employment. Plus, a new version of the Free Application for Federal Student Aid is set to launch in December.

    All this means that an October shutdown could cause a mess for the agency, depending on how long the funding lapse persists, though student loan payments will restart regardless of whether the government stays open….The specifics of the shutdown contingency plan haven’t been released, but under the department’s recent shutdown plan from September 2021, about 90 percent of its staff would have been furloughed. A skeleton crew would remain to maintain the student loan program. Meanwhile, the Office for Civil Rights would pause its investigations and the department would stop developing guidance, technical assistance and regulatory actions. A shutdown does create some additional challenges for colleges and universities, depending on how long it lasts.” Read more.

 

 

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