Linda McMahon’s Confirmation Hearing Remains Unscheduled
The confirmation hearing for President-Elect Trump’s Secretary of Education, Linda McMahon, has not been scheduled as yet. The Trump transition team still has to submit documents, such as financial disclosures and conflict of interest forms, to the Office of Government Ethics on behalf of Ms. McMahon. The confirmation hearing will not likely occur until after Inauguration Day.
Former House Education and the Workforce Committee Chairwoman Foxx Releases New Report on Biden Administration’s Efforts to Cancel Student Loans
On January 2, 2025, former House Education and the Workforce Chairwoman Virginia Foxx (R-NC) released a report titled, “Borrower Defense to Repayment: Another Example of the Biden-Harris Administration’s Failure to Follow the Rule of Law.” The report criticized the Department of Education’s implementation of the borrower defense to repayment process by distorting a process intended to provide recourse to students who attended schools that are found to have engaged in misrepresentation. Instead, the report concluded that the Department weaponized the process to provide illegal en masse debt “forgiveness.” The report’s concluding paragraph states:
“The Biden-Harris administration’s Department has repeatedly failed to adhere to the rule of law in its implementation of the HEA’s borrower defense to repayment provision, 20 U.S.C. § 1087e(h), and its use of the Secretary’s settlement and compromise authority, 20 U.S.C. § 1082(a)(6). Both are very straightforward statutes, but the Department has illegally co-opted and distorted each, far beyond the plain meaning of the text or historical interpretation. Indeed, the Fifth Circuit Court of Appeals in Career Colleges and Universities of Texas v. U.S. Dept. of Educ. found the Department’s borrower defense implementation actions wanting on multiple grounds.”
The key findings are:
- ED approved en masse borrower defense “group” claims in order to illegally approve almost $18 billion in taxpayer funds for borrower defense discharges.
- A whistleblower came forward to the Committee and provided extensive evidence that statutes of limitation governing refunds were routinely ignored, and Federal Collections Standards were not followed in order to approve en masse debt cancellation.
- ED distorted the meaning and Congressional intent behind settlement and compromise authority granted by the Higher Education Act.
A copy of the press release, including a link to the report, is found at:
https://edworkforce.house.gov/news/documentsingle.aspx?DocumentID=412129.
House and Senate Democrats Ask Secretary of Education to Cancel Federal Student Loan Debt for Borrowers Who Attended Predatory For-Profit Colleges
On December 4, 2024, House and Senate Democrats sent a letter to Secretary of Education Miguel Cardona asking him to immediately discharge the federal student loans of borrowers who attended predatory for-profit colleges. The letter said that ED “must immediately discharge the student loans for the hundreds of thousands of students who the Department has already committed to providing borrower defense debt relief.” Since 2022, ED has announced group discharges for more than 1.2 million individuals who attended schools that engaged in documented fraud and misconduct.” However, according to the court filings, hundreds of thousands of these borrowers still await relief, including more than 25 percent of Corinthian Colleges’ borrowers who await debt relief.
The letter demands that ED “must use its authority under the Higher Education Act to issue group discharges for the millions of borrowers who attended other institutions with documented histories of predatory practices.” The specific institutions are listed in the appendix to the letter. The letter indicates that “[d]efrauded students should not be left holding the bag for institutions that no longer exist.”
Finally, the letter demands that ED process any remaining applications for borrower defense discharge. “These borrowers completed an onerous application to demonstrate that they were victims of fraud, but the Department has yet to act.”
A copy of a press release, which includes the text of the letter, is found at:
President Signs the FAFSA Deadline Act into Law
On December 11, 2024, President Joe Biden signed into law the FAFSA Deadline Act (H.R. 8932), a bipartisan bill that would make October 1st the official launch date for the FAFSA each year. On November 20, 2024, the Senate passed H.R. 8932, by unanimous consent. On November 15, 2024, the House of Representatives passed H.R. 8932, by a 381-1 vote. While the FAFSA has generally been released on October 1, the 2024-2025 was released in late December 2024, and the 2025-2026 FAFSA was made available to all students on November 21, 2024.
On December 11, 2024, Ranking Member of the Senate Health, Education, Labor, and Pensions Committee Bill Cassidy, MD (R-LA) released a press release saying: “The Biden-Harris FAFSA delays forced students to choose their college without knowing their financial status or not attend college at all because they didn’t know if they could afford it. Students should not have to suffer because of bureaucratic incompetence.”
A copy of Senator Cassidy’s press release is found:
On December 11, 2024, Ranking Member of the House Committee on Education and the Workforce Bobby Scott (D-VA) released a press release saying: “By setting the firm FAFSA release date, the FAFSA Deadline Act gives students and families more time to complete their applications and secure the financial support they need to attend college without unnecessary delays.”
A copy of the press release is found at:
ED Announces Additional Federal Student Loan Forgiveness for Public Servants and Borrowers with Disabilities
On January 13, 2025, the Department of Education announced several additional actions to forgive federal student loans for public servants and borrowers with disabilities, as well as the loans of borrowers who attended colleges that engaged in wrongdoing. The Department said that, across 28 debt relief actions, including today’s, the Biden Administration has announced $183.6 billion in student loan forgiveness for more than 5 million borrowers since taking office.
A copy of the press release is found at: https://www.ed.gov/about/news/press-release/biden-harris-administration-surpasses-5-million-borrowers-approved-student-loan-forgiveness.
OPE Releases Frequently Asked Questions on Administrative Capability, Financial Responsibility and Program Integrity
On January 8, 2025, the Department of Education’s Office of Postsecondary Education released an Electronic Announcement (GENERAL-25-03) providing Frequently Asked Questions (FAQs) on Administrative Capability, Financial Responsibility and Program Integrity. These FAQs respond to policy questions received from the higher education community.
A copy of the Electronic Announcement is found at: https://fsapartners.ed.gov/knowledge-center/library/electronic-announcements/2025-01-08/frequently-asked-questions-administrative-capability-financial-responsibility-and-program-integrity.
ED Publishes Final Rule Announcing Annual Earnings Thresholds as part of the FVT/GE Rules
On December 31, 2024, ED published a Final Rule in the Federal Register announcing the annual earnings thresholds as part of the Financial Value Transparency and Gainful Employment (FVT/GE) regulations. The Notice provides state-by-state annual earnings thresholds for 2024 based on data from the Census Bureau, which is calculated for working adults aged 25-34, with only a high school diploma, to be used to calculate the earnings premium (EP) metric. Under the FVT/GE Rule, each year, ED will use the appropriate earnings threshold to determine if an educational program passes the EP measure. A program passes the EP measure by demonstrating that the median earnings for program graduates exceed the appropriate State or national earnings threshold.
- The initial institutional reporting deadline for FVT/GE is January 15, 2025.
- ED will issue a notice of determination to the institution informing the institution of D/E rates for each program, earnings premium measures for each program, whether each program is passing or failing, and the consequences of that determination.
A copy of ED’s announcement notifying the community of the Final Rule in the Federal Register of December 31, 2024, which includes the link to the Final Rule, is found at:
ED Publishes Final Rules on Distance Education Requirements, Return of Title IV Calculations, and the TRIO Program
On January 3, 2025, ED published Final Rules in the Federal Register resulting from the 2024 Program Integrity and Institutional Quality Negotiated Rulemaking on Distance Education requirements, Return of Title IV calculations, and eligibility requirements for the Federal TRIO program funds. The Final Rules include the following provisions:
- Distance Education: “Starting July 1, 2027, the Final Rules require institutions to report information to the National Student Loan Data System (NSLDS) about which students who received Federal financial aid are enrolled in distance education or correspondence courses. These data will help the Department better understand the outcomes and effectiveness of online learning.”
- ED is not going forward with its proposal to require institutions to report all of their fully online programs at a “virtual additional location.”
- ED is not going forward with its proposal to disallow the offering of asynchronous clock-hour programs through distance education, but reminds “institutions that asynchronous clock hours cannot be used for homework and that there must be robust verification of regular and substantive interaction with an instructor.”
- The new reporting requirement goes into effect on July 1, 2027.
- Return of Title IV (R2T4): ED adopted the proposal to allow an institution to avoid performing an R2T4 calculation for a withdrawing student if the school treats the student as not having begun, returns all of the Title IV funds for that student, and refunds or writes off all charges to the student. ED stated that these changes will incentivize schools to establish or maintain generous refund policies for students.
- ED adopted the proposal to treat a student as having withdrawn if the student goes 14 days without any attendance from an institution that is required to take attendance. This provision codifies longstanding guidance.
- The revisions will go into effect on July 1, 2026, but institutions have the option to early implement the withdrawal exemption as early as February 3, 2025.
- The Final Rule also allows for flexibilities to schools’ leave of absence policies in order to increase retention for students who are incarcerated that have unforeseen interruptions to their eligible prison education programs.
- TRIO: ED chose to not finalize any of the TRIO changes proposed in July, which would have expanded eligibility for the TRIO programs.
A copy of ED’s announcement notifying the community of the publication of the Final Rules in the Federal Register of January 3, 2025, which includes a link to the Final Rules, is found at: https://fsapartners.ed.gov/knowledge-center/library/federal-registers/2025-01-03/final-regulation-program-integrity-and-institutional-quality-distance-education-and-return-title-iv-hea-funds.
FSA Describes Brief Process for Institutions Applying for Approval of Eligible Career Pathway Program(s)
On December 23, 20224, Federal Student Aid (FSA) released an Electronic Announcement (GENERAL-24-151), which provides a description of the brief process for institutions applying for approval of eligible career pathway program(s) (ECPP) for use with Ability-to-Benefit (ATB) students at Title IV eligible institutions. Institutions relying on the ATB ECPP alternatives to establish student eligibility for Title IV funds must be able to document that each ATB ECPP offered by the institution meets the eligibility requirements detailed in 34 C.F.R. § 668.157. The documentation must be provided to the Department when obtaining initial approval for the ATB ECPP or when requested by the Department. To apply for Title IV approval of ECPP(s) for use with ATB, the institution must answer two questions under #8 – Ability-to-Benefit on the E-App with a “Yes” response.
A copy of the Electronic Announcement is found at: https://fsapartners.ed.gov/fsa-print/publication/1006391.
ED Releases DCL Providing Several Scenarios to Clarify How PP&E and Non-Bond Long-Term Debt are Treated for the Composite Score Calculation
On December 20, 2024, the Department of Education released a Dear Colleague Letter (DCL) (GEN-24-11), which provides several scenarios to clarify how property, plant, and equipment (PP&E) and non-bond long-term debt are treated for the composite score calculation. It also provides alternative options for the treatment of bond long-term debt. In addition, the DCL provides information about pre- and post-implementation leases. This DCL supersedes the Electronic Announcement of April 9, 2020, updated on August 20, 2020.
The Department issued final regulations on September 23, 2019, which among other things, superseded the guidance issued on July 15, 2003 (GEN-03-08), and updated the calculation of the composite score. Those regulations went into effect on July 1, 2020, for financial statement submissions on or after that date. These regulations remain in effect and are the source of all of the requirements set forth in the DCL.
The 2019 Regulations established a line of separation between long-term debt and PP&E that had been reported on an institution’s financial statements submitted to the Department prior to July 1, 2020, (referred to as “pre-implementation debt” and “pre-implementation PP&E”) and debt that is reported on financial statements submitted to the Department on or after July 1, 2020 (referred to as “post-implementation debt,” “post-implementation PP&E with debt,” and “post-implementation PP&E without debt”) (see 34 C.F.R. 668 subpart L, appendices A and B). In audited financial statements that are submitted by the institution on or after July 1, 2020, the amount of pre-implementation PP&E and pre-implementation long-term debt can never exceed the amount of the PP&E recorded in the audited financial statements submitted before July 1, 2020.
A copy of the DCL is found at: https://fsapartners.ed.gov/knowledge-center/library/dear-colleague-letters/2024-12-20/long-term-debt-used-property-plant-and-equipment-treatment-non-bond-and-bond-indebtedness-and-treatment-leases.
ED Releases Federal Register Notices Withdrawing the NPRM on Federal Student Loan Forgiveness Based on Certain Student Debts and the NPRM on Federal Student Loan Forgiveness Based on Hardship
On December 20, 2024, the Department of Education released a draft Notice withdrawing the Notice of Proposed Rulemaking (NPRM) to provide federal student loan forgiveness for certain student loan debts under the Higher Education Act (HEA) and a draft Notice withdrawing the NPRM to provide student loan forgiveness based on hardship.
On April 17, 2024, the Department published an NPRM in the Federal Register to waive the repayment of a loan provided by section 432(a) of the HEA, which specifies the Secretary’s discretion to provide debt relief targeted to specific circumstances, such as growth in a borrower’s loan balance beyond what was owed upon entering repayment; the amount of time since a loan first went into repayment; whether the borrower is otherwise eligible for loan forgiveness or discharge, but has not successfully applied; and whether a borrower obtained a loan to attend an institution or program that was subject to secretarial actions to end its Title IV eligibility that closed prior to such secretarial actions, or was associated with closed gainful employment programs with high debt-to-earnings rates or low median earnings.
On October 31, 2024, the Department published an NPRM in the Federal Register to waive repayment of a loan provided by sections 432(a)(6) and 468(2) of the HEA, which specified the Secretary’s discretion to provide debt relief to borrowers who are experiencing or have experienced hardship related to their loans. The NPRM had outlined two pathways for discretionary relief: (1) a predictive assessment offering individualized, automatic waivers based on the borrower’s likelihood of default to provide immediate relief as soon as practicable; and (2) a holistic assessment of the borrower’s circumstances based on an application or information within the Department’s possession to address persistent hardships not sufficiently addressed by other Department programs.
Both Notices were published in the Federal Register on December 26, 2024, but the rulemakings are terminated as of December 20, 2024. The actions taken by the Department effectively close the door on the Biden-Harris Administration’s move to provide broad-based federal student loan forgiveness to millions of borrowers. The Department cited the “operational challenges” of implementing both rules as the reason to withdraw the proposed rules and said it wanted to use the remaining time to prioritize “helping at-risk borrowers return to repayment successfully.”
The Department also emphasized that it is not withdrawing the NPRMs based upon a changed view of the Secretary’s authority because it still believes it has the authority to carry out these proposals. However, the Department stated that it recognizes that it has limited time remaining in the Biden Administration.
Copies of the Department’s two Notices announcing the two Federal Register Notices of December 26, 2024 are found at: https://fsapartners.ed.gov/knowledge-center/library/federal-registers/2024-12-27/student-debt-relief-william-d-ford-federal-direct-loan-program-direct-loans-federal-family-education-loan-ffel-program-federal-perkins-loan-perkins-program-and-health-education-assistance-loan-heal, and
ED Releases Federal Register Notice Terminating Accreditation, State Authorization, and Cash Management Rulemaking
On December 20, 2024, the Department of Education released a draft Notice formally terminating the accreditation, state authorization, and cash management rulemaking that were part of the Program Integrity and Institutional Quality issues that were undertaken as part of a larger negotiated rulemaking process last year. The Notice was published in the Federal Register on December 26, 2024, but the rulemaking process is terminated as of December 20, 2024. The announcement states that it has decided not to make any regulatory changes to accreditation, state authorization, and cash management rules to allow for additional evaluation of recent changes in other regulations and industry practices. “Terminating the negotiated rulemaking process at this time will allow the agency to gather additional data, assess evolving industry practices, and evaluate whether existing regulations remain necessary or require modification.”
A copy of the Department’s Notice announcing the Federal Register Notice of December 26, 2024 is found at: https://fsapartners.ed.gov/knowledge-center/library/federal-registers/2024-12-27/program-integrity-and-institutional-quality-state-authorization-cash-management-accreditation-and-related-issues.
ED Releases Federal Register Notice Withdrawing NPRM on “Nondiscrimination on the Basis of Sex in Education Programs or Activities Receiving Federal Financial Assistance: Sex-Related Eligibility Criteria for Male and Female Athletic Teams”
On December 26, 2024, the Department of Education published a Notice in the Federal Register, which withdrew the Notice of Proposed Rulemaking (NPRM) titled, “Nondiscrimination on the Basis of Sex in Education Programs or Activities Receiving Federal Financial Assistance: Sex-Related Eligibility Criteria for Male and Female Athletic Teams” that had been published in the Federal Register on April 13, 2023, which is withdrawn as of December 20, 2024. The intent of the NPRM was to “propose a regulatory standard under Title IX that would govern a recipient’s adoption or application of sex-related criteria that would limit or deny a student’s eligibility to participate on a male or female athletic team consistent with their gender identity.”
The Department reviewed the more than 150,000 public comments during the 30-day comment period. Some commenters expressed general support. Other commenters opposed the NPRM in its entirety. The Department also recognizes that there are multiple pending lawsuits related to the application of Title IX in the context of gender identity. Based on the comments received and the multiple pending lawsuits related to the application of Title IX in the context of gender identity, ED decided not to regulate on this issue at this time. ED noted that if, in the future, the Department decides to issue regulations on this topic, it will do so via a new NPRM.
A copy of the Federal Register Notice is found at:
Biden-Harris Administration Approves Additional $4.28 Billion in Student Debt Relief
On December 20, 2024, the Biden-Harris Administration announced the approval of $4.28 billion in additional student loan relief for 54,900 borrowers who work in public service. The debt relief was the result of significant fixes that the Administration has made to the Public Service Loan Forgiveness (PSLF) Program. The Administration has approved a total of $180 billion in loan forgiveness for 4.9 million borrowers through various actions, “taking historic steps to aid hardworking Americans across the country who have worked to repay their student loans but remained in debt.” The press release concluded that in addition to ensuring student loans are not a barrier to educational and economic opportunity for students and families, the Administration also secured a $900 increase to the maximum Pell Grant, the largest increase in a decade.
A copy of the press release is found at: https://www.ed.gov/about/news/press-release/biden-harris-administration-approves-additional-428-billion-student-debt-relief-nearly-55000-public-service-workers-0.
ED Announces the Reopening of Two Student Loan Repayment Plans
On December 18, 2024, the Department of Education announced in a press release the reopening of two student loan repayment plans to give borrowers more options to keep their payments affordable, the Income-Contingent Repayment (ICR) and Pay As You Earn (PAYE) repayment plans. Both offer credit for the Public Service Loan Forgiveness (PSLF) program to eligible borrowers enrolled in the currently enjoined Saving on a Valuable Education (SAVE) Plan. The PAYE and ICR plans are two of the Department’s Income-Driven Repayment (IDR) plans, which set monthly payments based on the borrower’s earnings and family size and have allowed borrowers to earn forgiveness after extended periods of payments.
A copy of the press release is found at: https://www.ed.gov/about/news/press-release/department-of-education-announces-borrowers-can-now-apply-additional-income-driven-repayment-plans.
On December 18, 2024, ED issued Qs&As for those student borrowers currently enrolled in the SAVE Plan, which is found at: https://www.ed.gov/higher-education/manage-your-loans/save-plan.
FSA Issues Reminder to Colleges to Advise Institutions to Make Available Information about the Cost of Attendance
On December 17, 2024, Federal Student Aid (FSA) issued an FSA Enforcement Bulletin, December 2024 (Electronic Announcement (GENERAL-24-145)), reminding institutions to make readily available to enrolled and prospective students, information about the institution’s cost of attendance, along with other institutional and programmatic information. The Enforcement Bulletin advises institutions that through investigations and secret shopping operations performed over the last year, FSA identified conduct that could rise to the level of a violation of 34 C.F.R. § 668.43. The conduct involves situations where schools may be imposing conditions or barriers on students seeking information about the cost of attendance. The Electronic Announcement advises institutions that if the Secretary determines that an institution fails to make the cost of attendance readily available to enrolled and prospective students, the Secretary may take administrative actions, which include imposing a fine or limiting the institution’s participation in the Title IV programs.
FSA concluded that its Office of Enforcement welcomes and encourages receiving information from current and former employees, vendors, and contractors of postsecondary institutions, third-party servicers, third-party lead generators, students, or any other relevant individual about potential violations of Title IV programs.
A copy of the Electronic Announcement is found at: https://fsapartners.ed.gov/knowledge-center/library/electronic-announcements/2024-12-17/fsa-enforcement-bulletin-december-2024-institutions-must-make-cost-attendance-readily-available-enrolled-and-prospective-students.
ED Announces the Availability on the FSA Training Center Resource Page that Consolidates FVT/GE Training Information
On December 10, 2024, the Department of Education announced (ANN-24-18) the availability of a new page on the FSA Training Center that consolidates Financial Value Transparency and Gainful Employment (FVT/GE) training information in one central location.
A copy of the announcement is found at:
Supreme Court Agrees to Review the Biden-Harris Administration’s Borrower Defense Rule
A January 13, 2025, article in “InsideHigherEd” reported that on January 10, 2025, the Supreme Court agreed to review President Biden’s borrower defense rule that aimed to make it easier for a defrauded student loan recipient to seek debt relief. The October 2022 final rule has been on hold since the summer of 2023 after the U.S. Court of Appeals for the Fifth Circuit put the regulations on hold. The Court later granted a preliminary injunction in April 2024, ruling that the Biden Administration’s policy had “numerous statutory and regulatory shortcomings.” The Biden Administration appealed the decision in October 2024. The January 10, 2025, order does not say when the Supreme Court will hear oral arguments.
Federal Judge Vacates Title IX Rule Nationwide
On January 9, 2025, the U.S. District Court of the Eastern District of Kentucky Chief Judge Danny Reeves granted summary judgment on the Title IX regulation and vacated the entire Title IX regulation, which was published on April 29, 2024, in State of Tennessee v. Cardona. Judge Reeves said that the Final Rule was “arbitrary and capricious,” and violates the First Amendment, namely freedom of speech, among other violations. The Title IX changes made by the Department of Education under the Biden Administration were already on hold in 26 states and at hundreds of colleges as a result of lawsuits from 26 Republican attorneys general. The Judge Reeves’ court order vacates the rule nationwide and results from a lawsuit brought by Indiana, Kentucky, Ohio, Tennessee, Virginia, and West Virginia. This appears to mean that the 2020 Title IX regulations are now in effect throughout the United States.
The Biden Administration is coming to an end, and it is unlikely that the Trump Administration will attempt to uphold the Title IX rule in court. Republican lawmakers are working on legislation to restrict transgender student participation in sports, and to codify that sex under Title IX means sex assigned at birth.
On January 9, 2025, Senate Chairman of the Health, Education, Labor, and Pensions Committee Bill Cassidy, MD (R-LA) said: “With President Trump and a Republican majority in Congress, we will ensure women and girls have every opportunity to success on the field and in the classroom.”
A copy of Senator Cassidy’s press release is found at:
VA Announces the Process for Awarding GI Bill Benefits for Veterans who Served Multiple Periods of Service
On January 3, 2025, the Department of Veterans Affairs announced that, following the 2024 Rudisill v. McDonough Supreme Court decision, it has updated the process for awarding GI Bill benefits. This new process means that many Veterans who served multiple periods of military service will be eligible for up to an additional 12 months of education benefits.
Under previous policy, eligible Veterans who served at least two periods of service were limited to a maximum total of 36 months of GI Bill benefits, between the Montgomery GI Bill and the Post 9/11 GI Bill. Under the updated policy, that limitation is removed, and Veterans can now qualify for up to 48 months of total GI Bill benefits.
A copy of the press release is found at: https://news.va.gov/press-room/va-expands-access-to-gi-bill-benefits-for-veterans-who-served-multiple-periods-of-service/.
VA Issues Reminder that All Schools Must Submit the 35% Exemption Request From the Reporting Requirement
On December 23, 2024, the Veterans Benefits Administration issued a reminder that for all school types, the 35 percent exemption expires 24 months from the date of issue. The Notice advised schools that were interested in receiving or renewing an existing 35 percent exemption that they must include the following documents for the corresponding reporting period in their request to the Department of Veterans Affairs (VA) via the Education File Upload Portal:
All schools must submit the 35% Exemption Request From 85/15 Reporting Requirement.
In accordance with 38 C.F.R. 21.4201, the school must submit applications for renewal in accordance with the following guidance:
- Schools organized on a term, quarter, or semester basis must make that submission no later than 30 days after the beginning of the first term for which the school wants the exemption to apply.
- Schools organized on a non-standard term basis must make its submission no later than 30 days after the beginning of the first non-standard term for which the school wishes the exemption to apply.
ACE, On Behalf of Other Higher Education Associations, Sends Letter Urging Secretary of Education to Further Delay Reporting Date for FVT/GE
On December 13, 2024, the American Council on Education (ACE), on behalf of a number of higher education associations, wrote Secretary of Education Miguel Cardona urging him to further delay the reporting requirements for its Financial Value Transparency (VFT) and Gainful Employment (GE) regulations from January 15, 2025, until July 2025. The letter includes the results of a recent survey that found colleges and universities were unclear as to their requirements under FVT/GE regulations, which requires schools to publicly post data showing their graduates can afford their student loan debt payments. Among the findings: 54 percent of respondents found the sub-regulatory guidance to be just somewhat clear, while 40 percent of respondents felt that the guidance was not clear at all. Overwhelmingly 87 percent of respondents shared their support for a delay in the reporting deadline to July 2025 since the current delay does not offer schools enough time to comply with the regulations.
A copy of the letter is found at: https://www.acenet.edu/Documents/Letter-FVT-GE-Reporting-Extension-121324.pdf.
Lawsuit Alleges Universities Colluded in Determining Students’ Financial Aid Packages
On December 18, 2024, the Wall Street Journal reported in an article titled, “Top Schools Lower Bar for the Rich,” that a motion was filed in an Illinois federal court in a lawsuit that began January 2022, which initially accused more than a dozen elite universities with price fixing. Twelve universities have since settled. The recent motion seeks class-action status for the case against the remaining five schools: MIT, Notre Dame, University of Pennsylvania, Georgetown University, and Cornell University. According to the article, “elite universities often present themselves as meritocracies that admit the best and brightest.” The motion that was filed describes officials bowing to financial pressures to admit wealthy students over potentially more qualified candidates. The motion seeks class-action certification and asks for $685 million in damages. The five schools vow to fight the lawsuit and said that their students earned their admissions.