Major Updates

Department of Education Warns Institutions on Misleading Representations, Urges Compliance
The US Department of Education’s Federal Student Aid (FSA) recently released an announcement bulletin that highlights activities that could indicate institutions are engaging in substantial misrepresentations—such as misleading claims about program costs, job placement, or licensure—and as such, face serious penalties. The bulletin emphasizes that institutions must avoid false or unsubstantiated statements to potential students, as violations can result in fines or restrictions on federal financial aid participation. Institutional staff should carefully review marketing materials and statements to ensure compliance and avoid misleading representations that could harm students and the institution’s standing. Please share this information with your institutional leadership and marketing teams, and be sure to also note our brand new resource below—Marketing Considerations Through the Lens of Regulations, Policies and Compliance.

The following are, according to the Department, “examples of instances observed by FSA in its oversight activities that could result in non-compliance. This is not an exhaustive list and other conduct not included may constitute actionable substantial misrepresentations.

• Schools have compared their job placement rates to that of peer institutions without sufficient and demonstrable substantiation.

• Schools have stated or implied that their degrees or certificates will help students become licensed in a field that does not require licensure.

• Schools have made unsubstantiated claims about their “ranking” compared to other schools, for example by claiming without any basis that they are the number one liberal arts college in the country.

• Schools have marketed certain characteristics of their faculty that are inaccurate or unrepresentative.

• Schools have made statements that may mislead prospective students into thinking they are a public school or a non-profit school.

• Schools have advertised or published documents stating a program’s cost of attendance or net price that are inaccurate or pertain only to a minority of students.”

For more details, you can access the full announcement here.

Marketing Considerations Through the Lens of Regulations, Policies and Compliance – NEW Primers and Insights Resource

Introducing a new resource tailored for higher education marketers and recruiters: Marketing Considerations Through the Lens of Regulations, Policies and Compliance. This guide provides an introduction to regulations that can impact marketing in online and professional education. It provides key insights on compliance essentials, as well as highlights the risks of noncompliance and strategies for navigating these laws and regulations. Whether you want to assess or refine existing campaigns or launching new initiatives, this resource is designed to help ensure your marketing practices are transparent, effective, and aligned with regulatory requirements. Explore it now to boost your compliance and marketing success! Access our new Policy Matters: Primers and Insights – Marketing Considerations Through the Lens of Regulations, Policies and Compliance.

Unimplemented Third Party Servicers Guidance To Get Officially Withdrawn – Negotiated Rulemaking on Topic Still To Come

The US Department of Education has announced it will formally withdraw its proposed guidance to regulate third-party servicers (TPS), which had aimed to extend oversight to companies contracting with colleges, including online program managers (OPMs). Originally issued in February 2023, the guidance faced pushback from higher ed groups, including UPCEA, citing negative impacts to institutions. The Department delayed the guidance, and then announced it would be replaced, and it never officially took effect. The withdrawal will be finalized within weeks, but the potential for change still is looming, as the department shifts its focus to a formal negotiated rulemaking process for updating TPS regulations. Read more.

Other News

• Stress Testing the FAFSA (Inside Higher Ed)

• ED Releases Proposed Student Loan Debt Forgiveness Regulations for Borrowers Experiencing Hardship (NASFAA)

• Under Borrower Defense, Ed Dept. Forgave $17.2B in Student Loans (Inside Higher Ed)

• Revised Draft NSLDS FVT GE Completers List Available by Oct. 28, 2024 (Federal Student Aid)