The New Ineligibility Based On Low Earnings Outcomes Proposal DOES NOT Include Undergraduate Certificate and Diploma Programs But There’s More to This Story

Overview
Late yesterday, with assistance from other advocates, CSPEN has been able to confirm that undergraduate programs below the associate’s degree level ARE NOT included in the proposed “Ineligibility Based On Low Earnings Outcomes” requirements.

Senate Health, Education, Labor, & Pensions Committee staff clarified that the explicit language contained within Title VIII – Subtitle E—Accountability was developed with intent and does, in fact, exclude undergraduate programs below the associate’s degree level.

The relevant part of the proposed legislation that was clarified is:

LOW-EARNING OUTCOME UNDERGRADUATE PROGRAMS DESCRIBED —
An educational program at an institution is described in this subparagraph if the program awards a bachelor’s or a lesser degree….

That’s the positive news – but there is more to this story.

Consider the following –

While the current Senate proposal would not include undergraduate certificate and diploma programs, without success in pending litigation and/or the inclusion in the final reconciliation compromise of the repeal of Financial Value Transparency/Gainful Employment regulations as provided under Title III – Subpart F—Regulatory Relief of the House passed bill, the eligibility and reporting requirements contained in existing regulation are still in effect.

Meaning all programs delivered by for-profit institutions of higher education (including undergraduate certificate and diploma programs) and the same programs offered by other sectors of education below the associate’s degree level are still, under current regulations, required to comply with the current regulations.

SO, think of it this way, we could potentially have TWO sets of requirements – and ultimately regulations using the “earnings premium” type regime – with entirely different calculation parameters. One based upon the new statute for undergraduate associate’s degree programs and higher based upon the legislation (if enacted as currently proposed and not modified) AND one based upon the existing debt-to-earnings and earnings premium requirements as currently promulgated in regulations.

As Paul Harvey used to say, “Now you know the rest of the story.”

What’s Next
All of the higher education community is currently reviewing, assessing, and evaluating the Senate proposal and determining how to respond. Our community is no different. Similar to the review and analysis above, the details of the Senate’s proposal released just three days ago are continuing to be questioned and new developments like this important issue are taking place as more information on the intent and interpretation of both the House and Senate proposals continue to be scrutinized.

CSPEN will continue to share timely updates with you on both additional interpretations and answers to other questions as the Senate continues to prepare to bring their proposals to the full Senate for consideration, and what you may want to do to inform their decision-making process in the days ahead.

Stay tuned for more information to follow in emails next week, and make plans to participate in next Thursday’s CSPEN Federal Legislative & Regulatory Update webinar.