Policy Matters | California-based Distance Ed Students from Out-Of-State Schools Ineligible for Financial Aid
Major Updates
- State Authorization Rule Goes into Effect, Causing Thousands of California-based Distance Ed Students from Out-Of-State Schools to be Ineligible for Financial Aid. The US Dept. of Ed released a formal response regarding a recent court ruling which blocked their ability to change an Obama-era rule on state authorization, thus making that rule effective May 26, 2019. The Obama administration regulations required institutions offering distance education courses to students in any state in which they are not physically located to be sure that state provides for a student complaints process, to be eligible for financial aid. California does not have this process for out of state schools, thus causing the issue. From the Department’s notification (emphasis added):
“Thus, under the 2016 regulation now in effect, students residing in California receiving distance education or correspondence courses from out-of-state public or non-profit institutions are ineligible for title IV programs until such time as the State of California provides those institutions with an appropriate complaint process or enters into a reciprocity agreement.
The Department has since reconsidered the policy of requiring a documentation of a complaint process in such situations—based on the harm it will cause to students and institutions alike in conjunction with nonconforming State policies—and has proposed a new regulation… however until a new regulation is implemented or the Court rules otherwise, the 2016 regulation applies as written.”
- US Department of Education rescinds Gainful Employment Rule. On July 1 the Department completely rescinded the 2014 Obama-era rule. Because the 2019 GE Rule will not become effective until July 1, 2020, the 2014 GE Rule will remain in effect for the next year. However, the Department is allowing the 2019 GE Rule to take early implementation “beginning on July 1, 2019, at the discretion of each institution.” Our legal partners at Thompson Coburn recommend immediate attention to the new rules.
- The US Department of Education issued a technology security alert regarding an “active and ongoing exploitation” of a security flaw with some of Ellucian’s Banner products. The department identified 62 colleges or universities that had been affected by hackers accessing a vulnerability in their software. Reports state that some of the actions taken included accessing colleges’ admissions or enrollment systems and then creating fake student accounts, with at least 600 fake accounts generated within a 24-hour period. Ellucian has said a new release on May 14 patched the issue and addressed the vulnerability. This story, coupled with increased cyber attacks from Iranian and other foreign actors, underscores the need for colleges and universities to have updated software and secure IT infrastructure to protect their operations and student data.
Other Reads
- Alaska president offers new plans following vote of financial exigency – 7/23/19 (Inside Higher Ed)
- UPCEA sends Public Comment to ED on issues like licensure disclosure, accreditation, state authorization.
- UPCEA helped launch the Today’s Students Coalition, an advocacy collective focused on modernizing the public policy landscape for today’s students.
- We also signed letters regarding urging the Senate to support legislation passed in the House regarding permanent residency for Dreamers.
We’d like your input! Like this format? Submit comments, or ideas for topics of inclusion in this newsletter. For more information on UPCEA government affairs, contact Jordan DiMaggio ([email protected]).
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UPCEA Policy Committee
Kristen Brown, University of Louisville, Chair
Bridget Beville, University of Phoenix
Corina Caraccioli, Loyola University New Orleans
Abram Hedtke, St. Cloud State University
George Irvine, University of Delaware
Craig Wilson, University of Arizona