Tony Guida, Duane Morris partner and Team Lead of the Education Industry Group, is featured in the EdUp Legal podcast.
In the episode, Tony discussed the Department of Education’s most recent suite of regulations impacting institutions’ participation in the Title IV program, specifically with respect to certification, financial responsibility and administrative capability.
On October 10, 2023, the U.S. Department of Education published the final rule on financial value transparency and gainful employment (88 Fed. Reg. 70004). The regulation restores and expands an accountability framework for career-specific training programs. At the same time, the regulation creates, for the first time, a new disclosure framework applicable to educational programs offered by all institutions participating in the Title IV, Higher Education Act (HEA) federal student aid funding programs.
This summary provides an overview of important facts and key elements of the final rule.
Read the full Alert on the Duane Morris LLP website.
The update also lists immediate changes in the interpretation of DCL 23-03 that the Department wanted to communicate immediately:
Specifically, the Department does not consider contracts involving the following activities to constitute third-party servicer relationships:
See Update on the Department of Education’s Third-Party Servicer Guidance – ED.gov Blog
Institutions of higher education (IHEs) and companies providing services to IHEs (including so-called online program managers or OPMs) should take careful note of two announcements by the U.S. Department of Education that could significantly impact the institution/service provider relationship and the Department’s oversight of that relationship.
First, and most immediately effective, the Department has revised its subregulatory guidance regarding the activities that make an entity providing services to an IHE a “Third Party Servicer” (TPS) for Title IV purposes. In a significant expansion over prior guidance, an OPM providing services to an IHE related to student recruiting and retention, providing software products and services involving Title IV administration activities, or providing educational content and instruction are now defined as a TPS. Being defined as a TPS comes with significant increased risk and compliance obligations by the third party and the institution. There is an open public comment period on this change through March 17, 2023.
Read the full text of this Alert on the Duane Morris website.
Important Update: On February 28, 2023, the Department published an update to Dear Colleague Letter 23-03 that makes clear the guidance does not become effective until September 1, 2023. The reporting deadline for institutions and third-party servicers to report to the Department is also extended until September 1, 2023. Further, the Department extended the comment period through March 30, 2023.
A video replay of the webinar “What Does It All Mean? The U.S. Department of Education’s Regulatory Reach Over Service Providers for Institutions of Higher Education” is available to view.
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”
Expanding access to postsecondary education for low income students includes more than just assistance with tuition and fees. Many low income students also need help with daily food costs while they pursue higher education. That need can adversely impact academic progress if not addressed. Needs have been exacerbated by the pandemic and high unemployment, and impact students whether they study on ground or online. Food insecurity among college students is gaining more attention, with the opening of college food pantries and other community support initiatives. The federal government is also stepping up. The U.S. Department of Education, in coordination with the U.S. Department of Agriculture, has issued new guidance to postsecondary institutions to raise awareness about temporarily expanded Supplemental Nutrition Assistance Program (SNAP) eligibility for students and urges institutions to make students aware of this resource. The expansion of benefits will be in effect until 30 days after the COVID-19 public health emergency is lifted. The new guidance can be found here: https://ifap.ed.gov/electronic-announcements/022321SNAPbenefitseligiblestudsCOVID19pandemic
On Feb. 22, 2021, the U.S. Department of Education distributed the FY 2018 draft cohort default rate (CDR) notification packages to all eligible domestic and foreign schools for those schools enrolled in the Electronic Cohort Default Rate (eCDR) notification process. Any school not enrolled in eCDR may download their cohort default rates and accompanying Loan Record Detail Reports from the National Student Loan Data System (NSLDS®) via the NSLDS Professional Access website.
The time frame for appealing the FY 2018 draft cohort default rates under 34 C.F.R Part 668, Subpart N begins on Tuesday, March 2, 2021 for all schools.
Under the Title IV financial responsibility regulations at 34 C.F.R. 668.171(d)(6), the Department has discretion to determine that a Title IV institution is not able to meet its financial or administrative Title IV obligations (which can lead to a letter of credit requirement or other potential adverse action) if the institution’s two most recent official cohort default rates are 30 percent or greater and such circumstance is likely to have a material adverse effect on the financial condition of the institution, unless the institution has a challenge, adjustment or appeal pending or successfully finalized.
Note that any school that did not have a borrower in repayment, during the current or any of the past cohort default rate periods, will not receive a FY 2018 draft cohort default rate notification package. These schools are considered to have no cohort default rate data and no cohort default rate.
https://ifap.ed.gov/electronic-announcements/022221FY2018DraftCDRDistributedFeb222021
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”
In a welcome bit of regulatory relief at time when institutions of higher education are working to comply with a new Title IX rule by August 14, 2020, the Department announced on July 10 that it is extending the date for institutions to distribute their Annual Security Report (ASR) and Annual Fire Safety Report (AFSR) to required recipients to December 31, 2020 (from October 1). The Department does encourage institutions to distribute their reports on the normal schedule if possible.
In addition, the electronic annual crime and fire statistics survey will now be open now from November 18, 2020 through January 14, 2021 for transmission of data to the Department.
The Department states in its July 10 announcement that it “encourages schools to take appropriate steps to ensure the health and safety of their students and employees, to continue to act in accordance with their campus safety policies and procedures, and to advise the campus community about changing conditions that may affect their safety or any major changes to safety policies or practices.” Institutions continuing or returning to partial or full on ground operations should keep in mind that they are still obligated to comply with their published campus safety policies and procedures, including with regard to emergency notifications and crime statistics collection and reporting. Any changes to published procedures should be communicated to the campus community.
https://ifap.ed.gov/electronic-announcements/040320UPDATEDGuidanceInterruptStudyRelCOVID19
