RECENT DEPARTMENT OF EDUCATION REGULATORY ACTIVITIES
Dr. Bob will not be at our meeting in January but sent this overview to all our schools
ED Releases Issue Paper and Identifies Non-Federal Negotiators to Create a Path to Debt Relief
On September 29, 2023, the Department of Education released an issue paper laying out ita
initial set of policy considerations to create a path to debt relief for student borrowers in need.
The paper identifies five questions about distinct categories of affected borrowers for which the
Department is seeking feedback. The debt relief issue paper was discussed at the first meeting of
the Student Loan Relief Committee, which took place October 10 and 11, 2023. The committee
is comprised of non-federal negotiators from 14 affected constituency groups, as well as a
negotiator from the Department. The committee will also meet in November and December.
The Department also released a list of the individuals who are serving on the negotiating
committee, which is found at: https://www2.ed.gov/policy/highered/reg/hearulemaking/2023/
student-loan-debt-relief-committee-list.pdf? utm_content=&utm_medium=email&utm_source=govdelivery&utm_term=
A copy of the press release, which includes the link to the issue paper, is found at: https://
www.ed.gov/news/press-releases/biden-harris-administration-moves-forward-student-debt-reliefnegotiated-rulemaking-deliver-support-many-borrowers-possible-quickly-possible
ED Releases Final Regulations on Gainful Employment
On September 27, 2023, the Department of Education announced that it released final
regulations that strengthen the Gainful Employment (GE) rule and establish a new Financial
Value Transparency (FVT) framework giving students in all programs detailed information about
the net costs of postsecondary education programs and the financial outcomes they can expect.
“It will also help prospective students understand the potential risks involved in their program
choices by requiring them to acknowledge viewing this information before enrolling in
certificate or graduate programs whose graduates have been determined to face unaffordable debt
levels.”
Secretary of Education Miguel Cardona said: “Today’s final rules answer President Biden’s call
to hold colleges accountable for rising costs and protect students from unaffordable college
debt.” The Department estimates that the final rules will protect nearly 700,000 students
annually who would otherwise enroll in one of almost 1,700 low-performing programs.
Under the Debt-to-Earnings ratio, the annual amount a typical graduate needs to devote to their
student loans must be equal to or less than 8 percent of annual earnings, or equal to or less than
20 percent of their discretionary earnings, which are their annual earnings above 150 percent of
the federal poverty guideline for a single individual).
{D1081180.DOCX / 1 }
The new earnings premium test would require at least half of the program graduates to have
higher earnings than a typical high school graduate in their state’s labor force who never enrolled
in postsecondary education.
Programs will be assessed separately on Debt-to-Earnings and earnings premium metric. If a
program fails either metric in a single year, they will be required to provide warnings to current
and prospective students that their program could be at risk of ineligibility for federal funding. If
a program fails the same metric in two of three consecutive years, it will no longer be eligible to
participate in federal student aid programs.
The final rule also contains a new Financial Value Transparency (FVT) framework, which “will
give all students the most detailed information ever available about the cost of postsecondary
programs, and the financial outcomes they can expect.” A significant change from the initial
proposal is that, while information will be collected and shared for all students in all programs,
only prospective students in certificate and graduate programs would be required to acknowledge
that a program has a high debt burden. Undergraduate degree programs are excluded from the
acknowledgement requirement. The FVT framework will use the same metrics as the gainful
employment framework: annual and discretionary debt-to-earnings (D/E) and the “earnings
premium” (EP). The FVT rules relate exclusively to transparency. No penalties or sanctions are
associated with the FVT regulations.
A copy of the press release is found at: https://www.ed.gov/news/press-releases/biden-harrisadministration-announces-landmark-final-rules-protect-consumers-unaffordable-student-debtand-increase-transparency?
utm_content=&utm_medium=email&utm_name=&utm_source=govdelivery&utm_term=
The final rules were published in the Federal Register at: https://www.federalregister.gov/
documents/2023/10/10/2023-20385/financial-value-transparency-and-gainful-employment
The press release announced that the GE accountability and FVT reporting provisions will go
into effect on July 1, 2024. According to the press release, the first official financial outcome
rates will be published in early 2025, and the first year that programs may become ineligible for
federal student aid programs is 2026.
On September 27, 2023, House Education and the Workforce Committee Chairwoman Virginia
Foxx (R-NC) issued a press release criticizing the move. “For an agency that purports to serve
the needs of veterans, minorities, and other disadvantaged students, the Department’s
announcement today is steeped in hypocrisy,” she said. “It has proven time and again that it
would rather march to the beat of its own bureaucratic drum than work to foster both
accountability and transparency in postsecondary education. Unfortunately, that means attacking
proprietary institutions through flawed and arbitrary regulations while giving a pass to the
thousands of low-value programs at institutions serving the vast majority of students.”
{D1081180.DOCX / 1 }
A copy of the press release is found at: https://edworkforce.house.gov/news/
documentsingle.aspx?DocumentID=409618
On September 28, 2023, Ranking Member of the House Education and the Workforce
Committee Bobby Scott (D-VA) released a statement saying: “The Gainful Employment rule is a
critical tool to address low-quality career programs that frequently leave graduates with crushing
debt and no meaningful career prospects.”
A copy of the press release is found at: https://bobbyscott.house.gov/media-center/press-releases/
scott-applauds-biden-protecting-students-taxpayers-low-quality
FSA Distributes FY 2020 Official Cohort Default Rates
On September 25, 2023, Federal Student Aid (FSA) distributed the FY 2020 official cohort
default rate (CDR) notification packages to all eligible domestic and foreign schools. The period
for appealing the FY 2020 official CDR begins on October 5, 2023, for all schools.
The national student loan briefing is found at: https://fsapartners.ed.gov/knowledge-center/
library/electronic-announcements/2023-09-29/national-default-rate-briefing-fy-2020-officialcohort-default-rates
FSA Reminds Institutions that Updates to the GLBA Went into Effect on June 9, 2023
ED Delays Title IX Final Rules.
The NPRM for the Title IX rules was published on July 12, 2022, and ED received more than
240,000 public comments. ED planned to release the final regulations in May 2023 and then
delayed it until October 2023. It looks like the final rules will be published well past Halloween.
The real issue is related to transgender athletes.
Sharon H. Bob, Ph.D.
Higher Education Specialist
Powers Pyles Sutter and Verville, PC
1501 M Street, NW, Suite 700
Washington, DC 20005
T: 202-872-6772
F: 202-792-6540
October 10, 202
Great New special Meeting in Dallas January 28t and 29th (Sunday and Monday)
_____________________
_____________________
Quick Book 2 Room Suite – 1 King Bed – Nonsmoking
for Regions 6 PCCS January Special Meeting! rate for only $184
Click below!
___________________________________
SUNDAY January 28th