Proposed Regulations Related to State Authorization, Cash Management, and Accreditation “Will Be Published Next Year”
Overview
Contained within the email announcement that CSPEN shared with you just a little while ago were references to a new “Homeroom (blog.ed.gov/2024/07/update-on-department-of-educations-postsecondary-education-regulatory-work/)” blog post which the email noted was to provide “updates and timelines for items on its regulatory agenda.”
Immediately upon sharing the initial information on the pending posting of the NPRM on TRIO, R2T4, and Distance Education, CSPEN directed our attention to the blog and announcements dated today from Under Secretary James Kvaal, which provided updated information on three key issues:
- Next Steps on Forthcoming Improvements to Regulations;
- Third-Party Servicers; and
- Incentive Compensation Guidance.
Very important new information is contained within the blog that is provided below for your immediate review.
Key Quotes From The Blog
Next Steps on Forthcoming Improvements to Regulations
“Proposed regulations related to State authorization, including State authorization reciprocity agreements, cash management, and accreditation will be published by next year. This schedule allows us to take additional time to carefully consider these important, complicated issues and refine solutions that address important challenges for students while balancing the need for quality oversight and improved student protections with the burden on institutions and changes impacting college accrediting agencies.”
Third-Party Servicers
“Today, the Department is announcing that, after careful consideration of all comments, we have decided to conduct negotiated rulemaking to consider regulations related to third-party servicers broadly. We believe this approach, which was suggested by many commenters, will allow the Department to use the negotiated rulemaking process to collaborate with the affected community on these issues. We will consider clarifying the scope of third-party servicer rules in several areas, including software and computer services, student retention, and instructional content. In addition to considering the definition of third-party servicers, we may also consider audit requirements; an application process; reporting, financial, past performance, and other compliance requirements; and other ideas proposed by the community. The Department will provide further detail on this rulemaking at a later date.”
Incentive Compensation Guidance
“In February 2023, the Department also announced that we would hold listening sessions and accept public comment on the impact of Department guidance on how institutions of higher education may compensate their recruiters. The Department received more than 250 comments from institutions, companies, faculty, consumer advocates, and more. Since then, we have reviewed those comments to better understand the impact of this exception and whether any updates are necessary to the guidance. We continue to review those comments and plan to issue revised guidance no sooner than late this year.”
What’s Next
Again, CSPEN will work to gain additional information and provide a summary of both the NPRM and this new information by Friday morning.
