Department of Education is rewriting key regulations for Title IV programs, which govern financial aid and institutional quality for colleges and universities.

The Department of Education (DOE) is currently undertaking a massive rewrite of key regulations for Title IV programs, which govern federal financial aid and institutional quality for colleges and universities in the USA. This is a big deal, as it could have significant implications for students, institutions, and the future of higher education.

U.S. Department of Education building

Here’s a breakdown of what we know so far:

What’s being rewritten?

The DOE is focusing on several key areas, including:

• Change of ownership and change in control of institutions: This could impact how institutions are held accountable for financial stability and student outcomes when they merge, acquire other institutions, or undergo other ownership changes.
• Certification procedures for participation in Title IV: This could streamline or tighten the process for institutions to become eligible for federal financial aid, potentially impacting new or smaller institutions.
• Standards of administrative capability: This could set new benchmarks for institutions’ financial management, data security, and ability to serve students effectively.
• Ability to benefit: This could redefine how institutions determine whether students are eligible for federal financial aid, potentially impacting students with prior academic struggles or incomplete coursework.
• Borrower defence to repayment: This could expand or clarify the process for students to have their federal loans forgiven if they were misled by their institutions.
• Discharges for borrowers with a total and permanent disability: This could make it easier for disabled borrowers to have their loans forgiven.
• Closed school discharges: This could improve the process for students who have their education disrupted when their institution closes.
• Financial responsibility for participating institutions of higher education: This could strengthen regulations around institutional financial reserves, risk management, and accountability for taxpayer dollars.

Why is this happening?

The DOE has cited several reasons for the rewrite, including:

• Outdated regulations: Many of the current regulations were written decades ago and no longer reflect the realities of modern higher education.
• Concerns about accountability: There have been growing concerns about for-profit colleges and other institutions that may not be using federal funds effectively or serving students well.
• Evolving needs of students: The DOE wants to ensure that regulations are in place to support the diverse needs of today’s students, including those from low-income backgrounds, first-generation students, and adult learners.

What’s next?

The DOE is currently in the early stages of the rulemaking process. They have issued a notice of proposed rulemaking (NPRM) and are accepting public comments until [date]. After that, they will review the comments and issue a final rule, which could take several months or even a year.

What does this mean for you?

If you’re a student, an educator, or anyone involved in higher education, it’s important to stay informed about the evolving Title IV regulations. You can submit comments to the DOE during the public comment period, and you can also follow the issue through organizations like the National Association of Student Financial Aid Administrators (NASFAA) or the American Council on Education (ACE).

This is a complex and important issue with the potential to shape the future of higher education in the USA. By staying informed and engaged, you can help ensure that the new regulations are fair, effective, and supportive of all students and institutions.