Reminders on New Regulations Effective July 1

The reporting deadline for Gainful Employment and Financial Value Transparency has been pushed back as new regulations take effect.

By Rick Cox

The Department of Education issued two final rules federal registers with new regulations effective July 1, 2024. One deals with Gainful Employment/Financial Value Transparency and can be accessed here. The second federal register provides new regulations on Financial Responsibility, Administrative Capability, Certification Procedures and ATB and can be accessed here.

Below are reminders on some of the items that will be effective July 1, 2024.

  • Gainful Employment/Financial Value Transparency – The department has pushed back the reporting deadline to October 1, 2024, from July 31, 2024. Institutions will have the ability to start reporting information on July 1, 2024, and all information must be submitted by October 1, 2024. The department has developed a web page to provide information related to GE/FVT, including the GE/FVT User Guide and FAQs. That page can be accessed here.
  • Prohibition on Holding Transcripts – Schools are prohibited from withholding transcripts for students who owe a debt because of an error made by the institution, or when there is fraud or misconduct by the institution or its employees. Colleges will be required to provide an official transcript to a student for payment periods for which a student received Title IV aid and all institutional charges were paid or included in an agreement to pay.
  • Limitations on GE Program Lengths – Programs must not exceed the hours established by the state for training for the recognized occupation for which the program prepares the student. Programs exceeding the hours established by the state will no longer be eligible for Title IV aid. Existing students (enrolled before July 1, 2024) may continue to receive aid for the remainder of their program.
  • Evaluating High School Diplomas – New requirements will go into effect for policies and procedures on evaluating the validity of a student's high school diploma and when institutions must consider a high school diploma invalid.
  • Career Services – Institutions are required to provide adequate career services to eligible students who receive Title IV aid.
  • Timely Disbursements – Institutions are required to disburse Title IV aid in a timely manner.
  • PPA Signatures – All authorized representatives of any entity with direct or indirect ownership of an institution are required to sign the Program Participation Agreement.
  • State Licensure or Certification – Institutions are required to ensure the program meets any licensure or certification requirements. Additionally, institutions are required to list all the states where the institution has determined that the program does or does not meet these requirements.
  • Career Pathway Program – The new regulations codified the requirements related to a CPP. Institutions offering their first CPP on or after July 1, 2024, will be required to obtain approval from the department for that initial program and affirm for any subsequent CPP that it meets all requirements. The new regulations provide the documentation requirements for submission to the department. For colleges already offering a CPP before July 1, 2024, the institution must apply to ED for approval for at least one of the CPPs the institution offers and must affirm that all other CPPs offered meet all requirements. For these institutions, they are not required to immediately apply for approval. Rather, they must request approval by the earlier of 1) any eligibility update the institution makes to the E-App that occurs on or after January 1, 2025; or 2) the institution’s next recertification date.
  • Credit Balances – Failure to pay credit balances as required (including timely) could result in the department determining the institution is not financially responsible.
  • Mandatory and Discretionary Triggers – The final rules expanded existing mandatory triggers, changed some existing discretionary triggers to mandatory, added some new mandatory triggers, amended some existing discretionary triggers and added some new discretionary triggers. As a reminder, institutions must report these events within 21 days, with the exception of 90/10. Institutions are required to report 90/10 failures no later than 45 days after the end of their fiscal year.
  • Financial Counseling – Financial counseling and financial aid communications must advise students to accept the most beneficial types of financial assistance available to them. Additionally, students must be provided with information on Cost of Attendance, including the individual components of the COA and a total of the estimated costs that will be owed directly to the institution. The counseling must also provide instructions and applicable deadlines for accepting, declining or adjusting award amounts.
  • Externships – Institutions offering programs that include an externship must provide that externship within 45 days of the successful completion of other required coursework.

Rick Cox is Global’s Executive Director of Regulatory Affairs and Compliance