Coalition of 23 State Attorneys General Opposes Proposed Federal Higher Education Accreditation Overhaul

By Katherine D. Brodie, Edward Cramp, Anthony J. Guida Jr., Kristina Gill, Daniel R. Walworth and Jen DeMay

On August 20, 2026, the U.S. Department of Education published a proposed Accreditation, Innovation and Modernization Rule that includes sweeping changes to the federal regulations governing the recognition and oversight of accrediting agencies under Title IV of the Higher Education Act. The proposed rule largely implements Executive Order 14279, “Reforming Accreditation to Strengthen Higher Education,” which directed the Department to modernize accreditation standards and reduce regulatory barriers. On September 21, 2026, 23 state attorneys general submitted public comment asserting that the proposed rule is likely to lead to harm to institutions of higher education, students and accrediting agencies, including by incentivizing lowered accreditation standards and oversight.

Read the full Alert on the Duane Morris LLP website.

Takeaways for Institutions: DOE Finalizes Earnings Accountability Framework for Title IV Programs

By Anthony J. Guida Jr., Edward Cramp, Katherine D. Brodie, Kristina Gill and John M. Simpson

On July 1, 2026, the U.S. Department of Education published a final rule implementing a new Title IV-program earnings premium measure established by Congress one year ago in the Working Families Tax Cut Act. The final rule stays close to the consensus language agreed upon in the Department’s Accountability in Higher Education and Access through Demand-driven Workforce Pell negotiated rulemaking, with some important changes noted below after public comment following publication of the notice of proposed rulemaking. The final rule represents a fundamental shift for higher education by implementing for the first time a congressionally mandated earnings-based metric that applies to all Title IV institutions and all of their Title IV eligible programs.

Read the full Alert on the Duane Morris LLP website.

Federal Court Stays Department of Education’s Narrowed Definition of “Professional Degree” for Graduate Student Loan Limits

By Anthony J. Guida Jr., Katherine D. Brodie, Jen DeMay, Kristina Gill and John M. Simpson

On June 24, 2026—just one week before the July 1, 2026, effective date of the new student loan limits—the U.S. District Court for the District of Columbia issued a significant ruling in American Association of Nurse Practitioners v. McMahon and the consolidated case PA Education Association v. Department of Education, staying in part implementation of the U.S. Department of Education’s new regulatory definition of “professional degree.” The stay prevents the Department from enforcing its narrowed definition, which would have limited the categories of graduate students eligible for higher federal student loan limits under the Working Families Tax Cuts Act (also known as the “One Big Beautiful Bill Act”), pending resolution of the litigation.

Read the full Alert on the Duane Morris LLP website.

Public Comment Period Open on Proposed Rulemaking to Amend Federal Student Loan Programs

On January 29, 2026, the U.S. Department of Education published a notice of proposed rulemaking (NPRM) to amend regulations for federal student loan programs based on the recent enactment of HR 1 (P.L. 1119-21), sometimes referred to as the “One Big Beautiful Bill Act” (the “Reconciliation Act”). The Department established two negotiated rulemaking committees for the implementation of the Reconciliation Act. The first committee, the Reimagining and Improving Student Education (RISE) Committee, reached consensus on November 6, 2025, on the entire package of loan-related changes, including federal student-loan limits, repayment plans and the elimination of the Graduate/Professional PLUS Loan program.

Read the full Alert on the Duane Morris LLP website.

U.S. Department of Education Updates Third Party Servicer Guidance

On May 16, 2023, the United States Department of Education (the “Department”) updated its Third Party Servicer Guidance issued in GEN-23-03.  The new Dear Colleague Letter (“DCL”) officially delays indefinitely the previously issued guidance.  It also removes the prohibition on contracts between institutions of higher education and foreign owned or operated third party servicers.

This DCL replaces the prior update posted in a blog by Undersecretary Kvaal, in which he commented that the department was effectively delaying the prior DCL.  This formalizes that announcement.

The DCL indicates that institutions will be provided with at least six (6) months advance notice before the effective date of any future formal guidance.  The deadlines for audit and contractual requirements in any new guidance will be delayed until the institution’s first fiscal year beginning after the effective date for the reporting requirements.  We read this to mean that institutions and Third Party Servicers will not be required to retroactively implement the new guidance.

Finally, the Department also clarified that institutions may contract with foreign owned Third Party Servicers.  It rescinded earlier guidance on this issue.  The Department did note, however, that this issue may be subject to rulemaking in the future.

Institutions and potential Third Party Servicers should continue to evaluate how they may be impacted by new regulation or guidance in this area.  It is clear that the Department is intent on increasing its oversight of Third Party Servicers by expanding the scope of services that fall into the Third Party Servicer bucket in the Higher Education Act.  In addition, the Department has identified Third-Party Servicers and Related Issues for rulemaking in the fall of 2023. Concerned parties should continue to monitor developments from the Department as they arise over the next several months.

USDE Publishes Final Rule on 90/10 Rule and Change in Ownership Regulations

On October 28, 2022, the U.S. Department of Education (Department) published the Final Rule (FR) that makes significant and wide-ranging changes to the 90/10 Rule and the change in ownership and control (CIO) regulations. In the accompanying Fact Sheet, the Department stated that the FR will “promote accountability…and strengthen protections for veterans, service members, students, and borrowers.”

The FR amends Title IV Revenue and Non-Federal Education Assistance Funds regulations to implement the statutory change in the American Rescue Plan Act of 2021 (ARP) and amends which non-Federal funds can be counted when determining compliance with the 90/10 rule. The FR also amends regulations to clarify the process for consideration of changes in ownership and control (CIO).

Below is a high-level summary of the major revisions to the 90/10 and CIO regulations. Continue reading “USDE Publishes Final Rule on 90/10 Rule and Change in Ownership Regulations”

U.S. Department of Education Announces 90/10 Rulemaking

On October 4, 2021, the Department announced their intention to conduct negotiated rulemaking on the 90/10 rule pursuant to the provisions in Section 2013 of the American Rescue Plan Act of 2021 (“ARPA”). The Department also announced two public hearings for interested parties to provide comment.

Section 2013 of the American Rescue Plan Act of 2021 (ARP) amended HEA section 487(a)(24) to require that a proprietary institution derive at least 10 percent of its revenues from sources that are not Federal education assistance funds. Federal education assistance funds are “Federal funds that are disbursed or delivered to or on behalf of a student to be used to attend such institution.” Section 2013(c)(2) of the ARP provides that regulations developed and published on 90/10 by the Department will not be effective until on or after January 1, 2023.

The notice further indicates that the Department intends to develop proposed regulations affecting institutional and programmatic eligibility, including the 90/10 rule.   This language leaves open the possibility that the committee may consider additional regulatory changes. The scheduled public hearings, however, are limited to comments on 90/10. They will announce the topics and schedule of committee meetings in a subsequent Federal Register notice. Continue reading “U.S. Department of Education Announces 90/10 Rulemaking”

U.S. Department of Education Proposes Massive Rewrite of Title IV Regulations

Later this month the Department of Education will embark on the first steps towards a massive rewrite of programs authorized by Title IV of the Higher Education Act of 1965. The Department is seeking input on a wide range of federal higher education topics, as identified in the notice, as well as input on how the Department could address gaps in postsecondary outcomes such as retention, completion, loan repayment, and student loan default by race, ethnicity, gender, and other key student characteristics. Continue reading “U.S. Department of Education Proposes Massive Rewrite of Title IV Regulations”

FSA Delays Annual Student Loan Acknowledgment Requirement

On March 8, 2021, the Federal Student Aid office (“FSA”) of the U.S. Department of Education (“Department”) published an Electronic Announcement that delays the implementation date for the Annual Student Loan Acknowledgment. In a November 21, 2019 Electronic Announcement, the Department had previously notified schools about a change to the Master Promissory Note (MPN) confirmation process.

Pursuant to the new process, student and parent borrowers are required to view how much they currently owe in federal student loans, and to acknowledge that they have seen this amount before a school can make the first disbursement of the first Direct Loan that a student or parent borrower receives for each new award year.

The Annual Student Loan Acknowledgement process will continue to be available on StudentAid.gov. However, borrower completion of the Annual Student Loan Acknowledgement prior to disbursement will not be required for the 2021–22 Award Year.

At this time, all processing related to the Annual Student Loan Acknowledgement will continue under existing business rules. Schools will continue to receive information about a borrower’s completion of the Annual Student Loan Acknowledgement process on StudentAid.gov.

Please see the November 2019 Electronic Announcement for more information about the Annual Student Loan Acknowledgement process and the technical requirements.

Department of Education releases new Clery Act Appendix; Rescinds 2016 Handbook for Campus Safety and Security Reporting

On October 9, 2020, the Department of Education (the “Department”) posted an Electronic Announcement announcing the rescission of and replacement for the 2016 Handbook for Campus Safety and Security Reporting. Through this announcement, the Department is rescinding the guidance in the 2016 Handbook and replacing it with a Clery Act Appendix to the Federal Student Aid (“FSA”) Handbook. The electronic announcement identifies and explains the significant changes between the 2016 edition and the new Clery-related Appendix. The Department anticipates that this rescission and publication of the new Appendix will help simplify Clery compliance.  Continue reading “Department of Education releases new Clery Act Appendix; Rescinds 2016 Handbook for Campus Safety and Security Reporting”

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The opinions expressed on this blog are those of the author and are not to be construed as legal advice.

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