Efforts to Align the Existing GE/FVT Regulations and New OBBB Statutory Requirements
Not An Easy As the Department Might Have Hoped
Overview
When you only have just one week (thirty (30) hours of actual negotiating time) to review, discuss, and attempt to complete the drafting of an entirely new institutional and programmatic accountability regime every second counts. Heading into day three this morning, the AHEAD Committee finds itself almost a full six hours behind the proposed agenda and efforts to have completed the initial discussion on the five topic areas which comprise the new “Student Tuition and Transparency System (STATS) and Earnings Accountability” regulatory proposals.
Here is a summary of the major actions which took place yesterday and a brief look at the day ahead.
Summary of Day Two
Day one concluded with the AHEAD Committee having only started conversations on Topic Three: Student Tuition and Transparency System (STATS): Metric Calculation which was slated to take up all of Monday afternoon’s (three hours) negotiating time. But starting yesterday’s negotiations it was hoped that the Committee could get back on track and complete Topics Three, Four, and Five by the end of the day. They fell far short of that goal as the negotiators spent all but the last hour (actually less than that) asking questions, sharing observations and concerns, and holding caucuses on various portions of the “Preliminary Discussion Guide: Student Tuition and Transparency (STATS) and Earning Accountability” proposals.
* Elimination of the Debt-to-Earnings Metric
Almost the entire morning session (three hours) was spent discussing efforts to align the existing Financial Value Transparency reporting and Gainful Employment eligibility regulations and new regulations into one across-the-board set of regulations to assess all programs the same way. A major portion of the Department’s proposal to complete this alignment calls for the repeal of the entire debt-to-earnings rates calculation. Discussion ensued on not only the rationale for making this significant change, but also the impact that it would have to either maintain it or eliminate it. Various negotiators shared their perspectives on the proposed elimination. The views ran the gambit and it is very clear that this topic along could prevent some parties from agreeing to, or at least not opposing, consensus.
* Benchmarks
Another key facet of the discussions focused upon the data used in the determination of the calculations and the details of the new STATS proposals. A number of negotiators sought additional information on the data sets that would be used both from the required data sets provided by the Census Bureau and also other data sets to be obtained by the IRS. A lengthy discussion took place throughout the afternoon on various aspects of earnings and income once again calling into question the accuracy of earnings reporting (tip wages, self-employed, less than full-time et. al.) and which definition/data is to be used (e.g. W-2 earnings above or below the line).
* Alternative Accountability Thresholds
And finally, much of the afternoon was spent discussing the extremely adverse impact that the new proposal will have on specific types of programs ranging from religious programs to social work programs to service-related industry programs. Several negotiators representing various groups asked the Department to consider modifications to the existing metrics, either using plus ups in terms of earnings, more narrowly defined groups of high school graduate cohorts, or other concepts to evaluate programs substantially at risk under the new proposals.
Before the day ended the Department provided a complete overview of the proposals contained in the discussion document under Topic Four: Student Tuition and Transparency System (STATS): Reporting Requirements. Today will begin with the negotiators sharing their perspective on this continuation of the development of the new STATS regime.
Today’ Starting Point & Proposed Agenda
As today begins the Department and negotiators are scheduled to complete initial deliberations on Topic Four and Five and attempt to then wrap back around to any revisions that the Department has made to Topics One-Three based upon Monday and Tuesday’s discussions. Here are the details of Topics Four and Five.
Topic Four: Student Tuition and Transparency System (STATS): Reporting Requirements
* § 668.406 Reporting requirements
* § 668.407 Severability
Topic Five: Earnings Accountability and Student Warnings
* § 668.601 Earnings accountability scope and purpose
* § 668.602 Earnings accountability criteria
* § 668.603 Low-earning outcome programs
* § 668.604 Certification requirements for Gainful Employment (GE) programs and eligible non-GE programs
* § 668.605 Student warnings
* § 668.606 Severability
