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House and Senate Committee Republicans Ask for Update on ED IG Investigation of FAFSA Implementation

On July 10, 2024, House Education and the Workforce Committee Chairwoman Virginia Foxx (R-NC), along with Senate Health, Education, Labor, and Pensions Committee Ranking Member Bill Cassidy, MD (R-LA), Senate Appropriations Committee Ranking Member Susan Collins (R-ME), Senate Labor-HHS Subcommittee Ranking Member Shelley Moore Capito (R-WV), and House Appropriations Subcommittee on Labor, Health and Human Services, and Education Chairman Robert Aderhold (R-AL), sent a letter to the Department of Education Office of Inspector General (OIG) urging it to provide an update on its investigation into the botched implementation of this year’s FAFSA.  They urged the office to “continue to focus on this critical matter and to share your findings with Congress and the American people.”

A copy of the press release, with the text of the letter, is found at:

https://edworkforce.house.gov/news/documentsingle.aspx?DocumentID=411790.

 

House Education and the Workforce Committee Passes FAFSA Deadline Act in Bipartisan Vote

On July 1, 2024, the House Education and the Workforce Committee passed H.R. 8932, the FAFSA Deadline Act, by a vote of 34-6.  The bill would require the U.S. Department of Education to make the Free Application for Federal Student Aid (FAFSA) available to students by October 1st.  Currently, the Higher Education Act requires the Department to make the FAFSA available no later than January 1st of the applicant’s planned year of enrollment or on or around October 1st prior to the applicant’s planned year of enrollment.

Chairwoman Virginia Foxx (R-NC) said:  The bill “requires the Department of Education to make the FAFSA available to students each year on October 1.  This will put an end to the “flexibility” in statute that has allowed the Department to release the FAFSA as late as January 1, which has caused confusion for schools and families and made it difficult for states and nonprofits to process aid packages or award scholarships.”

Ranking Member Bobby Scott (D-VA) said that H.R. 8932 would present the Department of Education with an arbitrary, accelerated deadline of October 1 to rollout the FAFSA.  “My colleagues and I have repeatedly spoken to the Department to express our frustration about this school year’s FAFSA implementation and my concern that these technological flaws will have long-term ramifications for some of our most vulnerable students.”

The bill will now go to the floor of the House for consideration.  A companion bill was introduced in the Senate by Senate Health, Education, Labor, and Pensions Committee Ranking Member Bill Cassidy, MD (R-LA).

A copy of the press release from Chairwoman Foxx is found at:

https://edworkforce.house.gov/news/documentsingle.aspx?DocumentID=411788.

A copy of the press release from Ranking Member Scott is found at:

https://democrats-edworkforce.house.gov/media/press-releases/committee-republicans-vote-to-undermine-fafsa-and-jeopardize-retirees-savings.

A copy of the press release from Ranking Member Cassidy is found at:

https://www.help.senate.gov/ranking/newsroom/press/ranking-member-cassidy-chairwoman-foxx-colleagues-demand-update-on-oig-investigation-into-bidens-botched-fafsa-rollout-amid-concerns-of-further-fafsa-delays.

 

House and Senate Democrats Introduce Pell Grant Preservation and Expansion Act

On June 20, 2024, House Education and the Workforce Ranking Member Bobby Scott (D-VA) and Senate Appropriations Committee Chairwoman Patty Murray (D-WA), along with Senators Mazie K. Hirona (D-HI), Jack Reed (D-RI), and Sheldon Whitehouse (D-RI) and Congressman Mark Pocan (D-WI) and other senators and congressmen, introduced the Pell Grant Preservation and Expansion Act, which will almost double the maximum award for the Pell Grant program, index the maximum award for inflation, make the Pell Grant funding fully mandatory, expand the program to include DREAMers, and restore lifetime eligibility for the program to 18 semesters.

Ranking Member Scott said:  “The Pell Grant is the most important tool we have to help students afford college.  Unfortunately, due to the rising cost of college, the purchasing power of Pell Grants has severely eroded over time.  By doubling the maximum Pell award, and adjusting future awards for inflation, the Pell Grant Preservation and Expansion Act will go a long way to restore the purchasing power and help millions of students earn a quality degree, without being forced to take on excessive debt.”

A copy of a press release, including a fact sheet, is found at:

https://democrats-edworkforce.house.gov/media/press-releases/scott-hirono-murray-reed-whitehouse-pocan-introduce-bill-to-double-pell-grant-make-college-more-affordable.

 

FSA Releases Information on the Availability of eZ-Audit for the Electronic Submission of Annual Financial and Compliance Audit Statements for Proprietary Institutions

On July 11, 2024, Federal Student Aid (FSA) released an Electronic Announcement (GEN-24-85) outlining annual financial statements and compliance audit submission guidance, including the 90/10 revenue footnote disclosure, for proprietary institutions with fiscal years that begin on or after January 1, 2023.  The Electronic Announcement also applies to proprietary institutions that have gone through, or are in the process of, a change in ownership.  This guidance supersedes the previous Electronic Announcement (GEN-24-70).

The Electronic Announcement states that the final regulations of October 28, 2022 amended the 90/10 revenue reporting requirements, with an effective date of July 1, 2023.  The Electronic Announcement indicates that extensive development updates to accommodate the 90/10 modifications have been completed, and annual financial statements and compliance audits may now be submitted through eZ-Audit.  Proprietary institutions that have already submitted their annual submissions through the Document Center on COD must resubmit their annual submissions within three weeks of this notification through eZ-Audit.

A copy of the Electronic Announcement is found at:

https://fsapartners.ed.gov/knowledge-center/library/electronic-announcements/2024-07-11/updates-availability-ez-audit-electronic-submission-annual-financial-and-compliance-audit-statements-proprietary-institutions#.

 

 

FSA Announces Delay in Implementation of New Program Length Rules

On July 3, 2024, Federal Student Aid (FSA) announced that one of the provisions of the October 31, 2024 final regulations pertaining to financial responsibility, administrative capability, certification procedures, and ability-to-benefit (ATB), which were scheduled to go into effect on July 1, 2024, was the rule that reduced the maximum length of gainful employment (GE) programs to 100 percent of a state’s minimum educational requirements for licensure in the occupation for which the program prepares students.  The Electronic Announcement (GEN-24-83) states that on June 21, 2024, the U.S. District Court for the Northern District of Texas, in 360 Degrees Education, LLC, et. al. v. U.S. Department of Education, et. al., granted the plaintiff’s motion for a preliminary injunction preventing the Department from enforcing the changes in 34 C.F.R. § 668.14(b)(26) pending a decision by the Court.

The Electronic Announcement states that until further notice, institutions must continue to comply with the maximum program length regulations that were in effect prior to July 1, 2024.  The existing regulations limit the maximum program length of GE programs to 150 percent of the state’s minimum educational requirements for licensure, or 100 percent of the requirements of an adjacent state, whichever is greater.

A copy of the Electronic Announcement is found at:  https://fsapartners.ed.gov/knowledge-center/library/electronic-announcements/2024-07-03/temporary-injunction-program-length-regulations.

 

ED Announces the List of CIP Codes for Qualifying Graduate Programs That Will Receive an Extended Earnings Measurement Period for FVT/GE

On June 28, 2024, ED published in the Federal Register a list of CIP codes for certain graduate programs that will be subject to an extended earnings period for the calculation of debt to earnings (D/E) and earnings premium (EP) rates.  The income for completers of these programs will be measured three years farther out after graduation than for completers of other programs.  ED is calculating rates differently for these graduate programs, which are mostly in medical and clinical fields, because completers experience depressed earnings while completing a required period of postgraduate clinical or residence work required to obtain professional licensure.

To qualify for the extended earnings period, a program must:  1) be identified under a qualifying CIP code, 2) be a program for which students must complete a required postgraduation training program to obtain licensure that requires both that the student have a degree in the field and that the degree must be completed prior to State or board certification for professional practice, and 3) the institution must attest that at least half of the program’s graduates obtain licensure in a State where the postgraduation training requirements apply and, if necessary for licensure, the graduate program is accredited by an accrediting agency that meets state requirements.  Every three years, ED will publish an updated list of qualifying CIP codes.

A copy of the Federal Register Notice is found at:

https://www.federalregister.gov/documents/2024/06/28/2024-14217/financial-value-transparency-and-gainful-employment-list-of-approved-classification-of-instructional.

 

FSA Provides Information on the Implementation of Institutional Reporting of Information for the Mandatory and Discretionary Triggers Under Financial Responsibility

On June 27, 2024, Federal Student Aid (FSA) provided information on the implementation of institutional reporting of information to the Department for the mandatory and discretionary triggers that went into effect on July 1, 2024.  The Electronic Announcement (GEN-24-80) states that institutions will utilize the Document Center available on the Common Origination and Disbursement (COD) website to report triggers.  Documentation provided by institutions should provide evidence that the trigger occurred.  Additional guidance will be provided in the future regarding the specific documentation that institutions may provide to fulfill the reporting requirements.

A copy of the Electronic Announcement is found at:  https://fsapartners.ed.gov/knowledge-center/library/electronic-announcements/2024-06-27/mandatory-and-discretionary-trigger-reporting-under-financial-responsibility.

 

FSA Reminds Institutions of Responsibilities Under the Clery Act

On June 26, 2024, Federal Student Aid (FSA) released an Electronic Announcement (GEN-24-78) reminding institutions of their responsibilities to comply with the Jeanne Clery Disclosure of Campus Security Policy and Campus Crime Statistics Act (Clery Act).  The purpose of the reminder is to ensure that students have a safe and supportive learning environment so they can achieve their educational goals and full potential.

Under the Clery Act, institutions are required to develop and implement a system of campus safety policies, procedures, and programs.  The Annual Security Report (ASR) must also include crime statistics for the last three calendar years.  FSA also reminds institutions that if they revise any of their campus safety policies, procedures, and programs before the next annual distribution of the ASR, institutions must advise their campus communities of the revisions.

A copy of the Electronic Announcement is found at:  https://fsapartners.ed.gov/knowledge-center/library/electronic-announcements/2024-06-26/reminder-institution-responsibilities-under-clery-act.

 

Secretary Cardona Releases Statement on Missouri and Kansas District Court Rulings on SAVE Plan

On June 25, 2024, Secretary of Education Miguel Cardona released a statement regarding the Missouri and Kansas District Court rulings on the Saving on a Valuable Education (SAVE) Plan, which block components of the SAVE Plan that “help borrowers have affordable monthly payments and stay out of default.”  The statement states that the Department of Justice will continue to defend the SAVE Plan.

According to the press release, “Under SAVE, nearly 8 million Americans – one out of five borrowers – have breathing room from bills that, too often, compete with basic needs.  But Republican elected officials and special interests sued to block their own constituents from being able to benefit from this plan – even though the “Department has relied on the authority under the Higher Education Act three times over the last 30 years to implement income-driven repayment plans.”

The Secretary concluded by indicating:  “We will continue to provide this long-overdue relief, no matter how many times Republican elected officials and their allies try to stop us.”

A copy of the press release is found at:  https://www.ed.gov/news/press-releases/statement-us-secretary-education-miguel-cardona-missouri-and-kansas-district-court-rulings-biden-harris-administrations-saving-valuable-education-save-plan.

 

FSA Provides Information on the Implementation of the GE Funding Metric Requirements

On June 20, 2024, Federal Student Aid (FSA) released an Electronic Announcement (GEN-24-74) providing information on the gainful employment funding metric requirements for institutions under the administrative capability and financial responsibility provisions.

  • Under administrative capability, the Department’s methodology will be to use the GE metrics calculated by the Department and released during the most recently completed award year to determine whether at least 50 percent of its total Title IV HEA program funds come from programs that are “failing.” Unlike the financial responsibility calculations, the Department will only use one set of GE metrics from the most recently completed award year to perform the calculations.
  • Under financial responsibility, the Department’s methodology will use multiple sets of GE metrics to determine when an institution receives at least 50 percent of its Title IV HEA program funds in its most recently completed fiscal year from GE programs that are “failing.” The first year, the Department will only have one set of GE metrics calculated, but this will increase over time to where the Department will be able to use multiple years of GE metrics to determine compliance.
  • The Electronic Announcement reminds institutions that the new financial responsibility rules require that all institutions align their Fiscal Year with the year that is used for their tax returns submitted to the Internal Revenue Service (IRS).
  • Finally, institutions are required to make any disbursements to students by the end of their Fiscal Year. “[I]nstitutions are required to disburse funds to students in a timely manner that best meet students’ needs.”

A copy of the Electronic Announcement is found at:  https://fsapartners.ed.gov/knowledge-center/library/electronic-announcements/2024-06-20/implementation-gainful-employment-funding-metric-requirements-institutions-under-administrative-capability-and-financial-responsibility.

 

FSA Provides Information on the Implementation of the Gainful Employment Funding Metric Requirements for Institutions Under Administrative Capability and Financial Responsibility

On June 20, 2024, Federal Student Aid (FSA) released an Electronic Announcement (GEN-24-74) providing information on the gainful employment funding metric requirements for institutions under the administrative capability and financial responsibility provisions.

  • Under administrative capability, the Department’s methodology will be to use the GE metrics calculated by the Department and released during the most recently completed award year to determine whether at least 50 percent of an institution’s total Title IV HEA program funds come from programs that are “failing.” The Department will only use one set of GE metrics from the most recently completed award year to perform the calculations.  The Electronic Announcement provides an example, which is Administrative Capability GE program funding amounts will be assessed in Fall 2025 using the GE metrics released during Award Year 2024-2025.
  • Under financial responsibility, the Department’s methodology will use multiple sets of GE metrics to determine when an institution receives at least 50 percent of its Title IV HEA program funds in its most recently completed fiscal year from GE programs that are “failing.” The first year, the Department will only have one set of GE metrics calculated, but this will increase over time to where the Department will be able to use multiple years of GE metrics to determine compliance.  The Department provides an example as follows:
  • Institution’s FY end 12/31/2024: Compliance is assessed using one year of data, which will be the GE metrics released in Winter 2025.
  • Institution’s FY end 12/31/2025: Compliance is assessed during two years of data, which will be the GE metrics released in Winter 2025 and in Winter 2026.
  • Institution’s FY end 12/31/2026: Compliance is assessed using three years of data, which will be the GE metrics released in Winter 2025, Winter 2026, and Winter 2027.
  • The Electronic Announcement reminds institutions that the new financial responsibility rules require that all institutions align their Fiscal Year with the year that is used for their tax returns submitted to the Internal Revenue Service (IRS).
  • Finally, institutions are required to make any disbursements related to awarded aid to students by the end of their Fiscal Year, assuming the student meets applicable eligibility requirements to receive that aid. “[I]nstitutions are required to disburse funds to students in a timely manner that best meet students’ needs.”

A copy of the Electronic Announcement is found at:  https://fsapartners.ed.gov/knowledge-center/library/electronic-announcements/2024-06-20/implementation-gainful-employment-funding-metric-requirements-institutions-under-administrative-capability-and-financial-responsibility.

 

FSA Announces Details on the Launch of the 2025-2026 FAFSA; Delays Continue for the 2024-2025 FAFSA

On June 17, 2024, Federal Student Aid (FSA) released an Electronic Announcement (GEN-24-72) providing new details related to the launch of the 2025-2026 FAFSA form.  To ensure a smoother user experience for the 2025-2026 FAFSA form, FSA said that the 2025-2026 FAFSA form will remain consistent with the 2024-2025 FAFSA form.  However, FSA said that it will continue to focus its efforts on improving the user experience for students, families, and partners.  FSA will collect feedback to inform their efforts by holding a series of listening sessions.  In addition, FSA will release a Request for Information (RFI) this summer to solicit feedback for those who will not be able to attend the listening sessions.

Finally, FSA said it is entering the final phases of testing on two functions, processing 2024-2025 paper FAFSA forms and the ability for schools to submit corrections electronically by entering the data manually via the FAFSA Partner Portal (FPP).  These two functionalities should be available by the end of June.

A copy of the Electronic Announcement is found at:  https://fsapartners.ed.gov/knowledge-center/library/electronic-announcements/2024-06-17/details-related-2025-26-fafsa-form-launch-opportunities-engagement-and-additional-activities-2024-25-cycle.

ED Announces Jeremy Singer as FAFSA Executive Advisor to Lead the FAFSA Strategy

On June 14, 2024, the Department of Education announced the appointment of Jeremy Singer as FAFSA Executive Advisor in Federal Student Aid (FSA) to lead the FAFSA overall strategy and accelerate technology innovation to enhance FSA’s technical and operational capabilities.  Mr. Singer is taking temporary leave as President of the College Board to join the Department to lead FSA’s overall strategy on the 2025-2026 FAFSA process.

Secretary of Education Miguel Cardona said: “Jeremy brings deep experience having successfully led the development and introduction of major technology innovations in education, which will be integral to improving the FAFSA experience and ensuring millions of students and families can easily access the federal financial aid they are entitled to.”

The press release stated that the “expansive scope and timeline of the changes for the 2024-2025 FAFSA has been challenging for students, families, institutions, states, and organizations that support them.”  The Department said that it will continue to work with partners and solicit feedback to improve the FAFSA process for students and their families.

A copy of the press release is found at:

https://www.ed.gov/news/press-releases/us-department-education-announces-jeremy-singer-fafsa-executive-advisor-office-federal-student-aid.

The College Board Chief Information Officer Jeff Olson also joined the Department’s efforts to strengthen the internal systems and processes to help ensure optimal performance leading to the launch of the 2025-2026 FAFSA form.  Like Mr. Singer, Mr. Olson’s position will be temporary, and he will return to the College Board when it is over.

 

DCL Explains Changes Made to the Ability-to-Benefit State Process Regulation

On June 12, 2024, Federal Student Aid (FSA) released a Dear Colleague Letter (DCL) (GEN-24-08) explaining changes made to the Ability-to-Benefit (ATB) state process regulation for Eligible Career Pathway Programs (ECPPs).  The DCL explained that in December 2014 the Higher Education Act was amended to allow a student, who does not have a high school diploma or the recognized equivalent, or who did not complete a secondary school education in a homeschool setting, to be eligible for Title IV.

Students who are enrolled in an ECPP may be eligible to receive Title IV funds if the student meets one of the following ATB alternatives:

  • Passes an independently administered Department of Education approved ATB test;
  • Completes at least six credit hours or 225 clock hours that is applicable toward a degree or certificate offed by the institution; or
  • Completes a State process approved by the Secretary of Education.

On October 30, 2023, final regulations were published amending the provisions of the state process alternative and provided regulatory requirements for ECPPs that are used for establishing student eligibility for Title IV funds effective July 1, 2024.  The DCL describes the amended state process.

A copy of the DCL is found at:  https://fsapartners.ed.gov/knowledge-center/library/dear-colleague-letters/2024-06-12/ability-benefit-state-process-and-eligible-career-pathway-programs.

 

FSA Releases Updated Instructions for the Electronic Submission of Annual Financial and Compliance Audit Statements

On June 10, 2024, Federal Student Aid (FSA) released an Electronic Announcement (GEN-24-70) with updated instructions for the electronic submission of annual financial and compliance audit statements, including the 90/10 revenue footnote for proprietary institutions with fiscal years that begin on or after January 1, 2023.  The Electronic Announcement also applies to proprietary institutions that have gone through, or are in the process of a change of ownership to become a nonprofit or public institution and are required to report the 90/10 revenue calculation.

On October 28, 2022, the final regulations amending the 90/10 revenue reporting requirements and calculation were published in the Federal Register with an effective date of July 1, 2023.  In order to accommodate the updated 90/10 regulations in eZ-Audit, extensive development updates are required, which are currently in process and will not be ready with an Audit Due Date of June 30, 2024.  Instead, FSA will require this specific cohort of institutions to submit their Annual Submissions through the Document Center available on the Common Origination and Disbursement (COD) website in order to meet the submission deadline.

A copy of the Electronic Announcement is found at:  https://fsapartners.ed.gov/knowledge-center/library/electronic-announcements/2024-06-10/updated-instructions-electronic-submission-annual-financial-and-compliance-audit-statements-proprietary-institutions#.

 

Supreme Court Issues Decision to Overturn Chevron Doctrine

On June 28, 2024, the U.S. Supreme Court issued its decision to overturn the Chevron doctrine in its decision in Loper Bright Enterprises, et al v. Ralmondo, Secretary of Commerce, et al.  The Chevron doctrine required federal courts to defer to government agencies when interpreting statutes with ambiguous meanings.  The decision, by a vote of 6-3, states that the Administrative Procedure Act (APA) requires courts to exercise their independent judgment in deciding whether an agency has acted within its statutory authority, and courts may not defer to an agency interpretation of the law simply because a statute is ambiguous.

Following the decision, several publications reported that they were beginning to examine the impact of the court’s decision on student loan policy and other regulations.  The Department argues that the President has the authority to enact student debt relief under the Higher Education Act’s compromise and settlement authority.

Senate Health, Education, Labor and Pensions (HELP) Ranking Member Bill Cassidy, M.D. (R-LA) sent a letter to Secretary of Education Cardona asking how the Department of Education plans to comply with the Supreme Court’s decision to overturn the Chevron doctrine.  Senator Cassidy said:  “For too long, Chevron deference allowed unelected bureaucrats, insulated from political accountability, to exercise power that exceeds their authority.”  As an example, Senator Cassidy pointed to the illegal student loan schemes pursued by the Department without any authority to take such action.  Another example of the Department’s overreach that was cited in the letter is the gender identity protections under the new Title IX rule.  In the letter, Ranking Member Cassidy accused the Department of “flagrantly and repeatedly” violating the law by crafting policy without an authorization from Congress.

The Supreme Court ruling could deal a major blow to the Department’s policy agenda.  The Cassidy letter gave the Department until July 19th to answer several questions about how it will abide by the ruling.

A copy of the Senator’s press release is found at:

https://www.help.senate.gov/ranking/newsroom/press/ranking-member-cassidy-applauds-scotus-decision-returning-legislative-power-to-congress.

A copy of the Senator’s letter as published by Politico is found at:

https://subscriber.politicopro.com/f/?id=00000190-6bca-d3d9-a9da-efda40f10000.

 

Two Federal Judges Block Biden’s New Income-Driven Repayment Plan

On June 24, 2024, two U.S. District Court Judges blocked the further implementation of the Biden Administration’s income-driven repayment plan.  More than eight million borrowers are enrolled in the repayment plan known as Saving on a Valuable Education (SAVE), which is designed to make loan payments more affordable and offers a quicker pathway to loan forgiveness.

A federal judge from Missouri blocked the Biden Administration from providing debt relief under SAVE, while the federal judge from Kansas blocked the Biden Administration from implementing other parts of the SAVE program.  Both judges found that the Department of Education did not have the authority to make such significant changes in the income-driven repayment plan.  Neither order rolls back the debt relief already provided.

The rulings come almost a year after the Supreme Court struck down Biden’s effort to forgive up to $20,000 in loans for more than 40 million borrowers.

During a press briefing following the court cases, White House Press Secretary Karine Jean-Pierre said that the Department of Justice will be appealing both decisions to block key provisions of the SAVE Plan.  To date, the Tenth Circuit Court of Appeals lifted the injunction blocking the payment reduction portion of the SAVE Plan.  The judges said that the Department of Justice made a strong showing that its arguments will likely succeed on the merits and that it will suffer irreparable injury absent a stay.  More to come!

Ranking Member of the Senate Health, Education, Labor, and Pensions (HELP) Committee Bill Cassidy M.D. (R-LA) applauded the rulings in a statement released on June 24, 2024:

“Just like Biden’s other student loan schemes, this IDR policy does not ‘forgive’ debt.  It transfers the burden of $559 billion in debt from those who willingly took it on to Americans who chose to not go to college or already sacrificed to pay off their loans.”

A copy of Dr. Cassidy’s statement is found at:

https://www.help.senate.gov/ranking/newsroom/press/ranking-member-cassidy-on-federal-court-blocking-bidens-student-loan-scheme-to-shift-559-billion-in-student-debt-onto-taxpayers-1.

 

Federal Judge Temporarily Blocks Maximum Program Length

NASFAA reported that on June 21, 2024, District Judge Mark T. Pittman of the U.S. District Court for the Northern District of Texas imposed a temporary injunction against the enforcement of the Bare Minimum Rule in 360 Degree Education, LLC et. al. v. U.S. Department of Education.  The provision was included in the final regulations published on October 31, 2023, which was slated to take effect on July 1, 2024.

Under the rule, which is now halted by the injunction, the maximum program length would be capped at 100 percent of the state’s minimum required clock or credit hours instead of 150 percent of the minimum number of clock hours required for the occupation in the state in which the institution is located.  The final rule could result in students not qualifying for federal student aid if the program’s minimum clock hours or credit hours exceed those hours required by the state in which they operate.

On July 3, 2024, Federal Student Aid (FSA) issued an Electronic Announcement (GEN-24-83) notifying institutions that until further notice they should comply with the regulations (150 percent rule) in effect prior to July 1, 2024.  (See earlier article.)

 

Federal Judge Denies Preliminary Injunction Request to Delay GE Rule

On June 20, 2024, District Judge Reed O’Connor of the United States District Court for the Northern District of Texas denied the request to grant a preliminary injunction by the plaintiffs in Ogle School Management v. U.S. Department of Education against the Biden Administration’s gainful employment and financial value transparency rule.  It was reported that Judge O’Connor’s denial of the request for a preliminary injunction was because he was not convinced that the 2023 rule contradicts that statutory definition of gainful employment.

 

Federal District Court Judge Blocks the Implementation of the Final Title IX Rule for Alaska, Kansas, Utah, and Wyoming

On July 8, 2024, Inside Higher Ed” reported that U.S. District Court for the District of Kansas Judge John Broomes blocked the Biden Administration from enforcing its new Title IX regulations in Alaska, Kansas, Utah, and Wyoming.  Judge Broomes wrote a 47-page opinion stating that the Department of Education lacked the authority to expand prohibited sex-based discrimination under Title IX to include discrimination based on gender identity.

Following Judge Broomes order, the Title IX regulations are now temporarily blocked in 14 states.

 

Federal Judge Temporarily Blocks the Implementation of the Final Title IX Rule for Indiana, Kentucky, Ohio, Tennessee, Virginia, and West Virginia

On June 18, 2024, “Inside Higher Ed” reported that U.S. District Court for the Eastern District of Kentucky Chief Judge Danny Reeves issued an order temporarily blocking the Title IX rule from taking effect in Indiana, Kentucky, Ohio, Tennessee, Virginia, and West Virginia on August 1, 2024.  Judge Reeves wrote in the order that the expanded definition of sex-based discrimination “wreaks havoc on Title IX,” and “Title IX of the Education Amendments of 1972 was intended to level the playing field between men and women in education.”  Judge Reeves is the second federal judge to rule against the Biden Administration’s Title IX final rule.  [See article below.]

Judge Reeves said that the rule was “arbitrary in the truest sense of the word” and carries “serious First Amendment implications.”  He also noted that the Department of Education did not adequately respond to concerns expressed during the comment period because the Department simply responded “does not agree” with commenters who responded to the Notice of Proposed Rulemaking (NPRM).  No explanation was provided for the Department’s disagreement with the commenters.

 

Federal Judge Temporarily Blocks the Implementation of the Final Title IX Rule for Louisiana, Mississippi, Montana, and Idaho

On June 13, 2024, “Politico” reported that U.S. District Court for the Western District of Louisiana Chief Judge Terry Doughty said that Title IX “was written and intended to protect biological women from discrimination.”  He did not agree that “discrimination on the basis of sex” includes “gender identity, sex stereotypes, sexual orientation, or sex characteristics.”  The Judge was also reported to have said that the case “demonstrates the abuse of power by executive federal agencies in the rulemaking process.”

Judge Doughty issued an order that temporarily blocked the implementation of the Department’s Title IX rule from taking effect in Louisiana, Mississippi, Montana, and Idaho on August 1, 2024.  Six other lawsuits are being pursued by other Republican attorneys general.  Several states, including Louisiana, Montana, Florida, South Carolina, and Oklahoma, were reported to have said they will not comply with the Title IX rule.

On June 25, 2024, “Higher Ed Dive” reported that the Department of Education submitted a notice of appeal to the 5th Circuit Court of Appeals.

 

ACE, NASFAA, and Other Members of the Higher Education Community Sent a Letter to Secretary Cardona Urging the Department to Commit to the October 1, 2024 Launch Date for the 2025-2026 FAFSA

On June 7, 2024, the American Council on Education (ACE), the National Association of Student Financial Aid Administrators (NASFAA), and other members of the higher education community sent a letter to Secretary of Education Miguel Cardona urging him to commit to the traditional launch date of October 1, 2024 for the 2025-2026 FAFSA, which includes FAFSA processing, school receipt of processed FAFSAs, processing paper FAFSAs, and FAFSA correction functionality for applicants, schools, and states.  If the October 1, 2024 date is not possible, ED should communicate a timeline for the complete FAFSA launch as soon as possible.

They expressed concern that the FAFSA form will be delayed again and that the release date will remain uncertain until just before the form is available.  This approach will lead to a repeat of the 2024-2025 award year.  The letter concluded by stating that another delayed FAFSA release, combined with vague communication about when the form will be available, will have disastrous impacts on students, counselors, and financial aid administrators.

A copy of the letter is found at:  https://www.acenet.edu/Documents/Letter-House-NDAA-060724.pdf.

 

GCU Doctoral Students File a Class-Action Lawsuit Alleging Doctoral Students Were Defrauded Out of Thousands of Dollars

On June 12, 2024, an article in the “Arizona Republic” indicated that a class action lawsuit was filed in U.S. District Court, alleging doctoral students at Grand Canyon University (GCU) were intentionally defrauded out of thousands of dollars through what attorneys’ claim was a racketeering scheme.  According to the article, attorneys argued GCU was used as a “RICO Enterprise” by Grand Canyon Education Inc., a for-profit company and the provider of marketing services for GCU.  RICO refers to the Racketeer Influenced and Corrupt Organizations Act, which was created in 1970 to target organized crime.  The complaint also cited multiple state consumer protection laws.

The article indicated that the complaint filed on June 12, 2024, seeks to represent all GCU doctoral students enrolled anytime from the 2017 fall semester onward.  The complaint cited two students who paid $8,400 and $8,700 respectively to enroll in “continuation courses” they took after paying for the 60 credits they were told they needed to graduate.

On October 31, 2023, the Department of Education issued a $37.7 million fine against GCU after a report said officials had been deceptively marketing its doctoral degrees.  The report conducted by the Department of Education found that fewer than 2 percent of graduates from the doctoral programs finished their program within the costs advertised.  On December 27, 2023, the Federal Trade Commission (FTC) filed a lawsuit against GCO for deceiving prospective doctoral students about the cost and course requirements of its doctoral program and about being a nonprofit institution, while also “engaging in deceptive and abusive telemarketing activities.”

A copy of the ED press release is found at:  https://www.ed.gov/news/press-releases/us-department-education-office-federal-student-aid-fines-grand-canyon-university-377-million-deceiving-thousands-students.

A copy of the FTC press release is found at:  https://www.ftc.gov/news-events/news/press-releases/2023/12/ftc-sues-grand-canyon-university-deceptive-advertising-illegal-telemarketing.

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