By: Misty Barron
The Biden-Harris Administration has introduced new regulations to improve oversight and accountability in higher education. The aim is to strengthen consumer protections for student borrowers and empower the Department of Education to safeguard students and taxpayers.
The regulations, which will come into effect on July 1, 2024, directly respond to President Biden’s commitment to make college more affordable, hold educational institutions accountable, and protect taxpayers and consumers. The new rules address several key issues.
Financial Responsibility: These rules establish warning signs that indicate when an institution is at financial risk, making it easier for the Department of Education to secure upfront financial protection, such as a letter of credit. This will deter risky behavior and better protect taxpayers from the consequences of abrupt college closures.
Administrative Capability: The regulations introduce requirements for colleges to provide clearer, more comparable information on financial aid, including differentiating between scholarships and loans. Colleges are prohibited from withholding transcripts for federally funded courses, and the rules also mandate adequate career services and restrict the employment of individuals with a history of mismanaging federal student aid programs.
Certification Procedures: The new rules outline additional conditions that the Department can impose on institutions displaying warning signs, such as restricting the addition of new programs and locations. The rules also ensure that student aid is only available for career-training programs in line with state certification or licensure requirements.
Ability to Benefit: These rules clarify the process for students without a high school diploma or its recognized equivalent to access federal aid, increasing opportunities for postsecondary education.
This development is part of the Biden-Harris Administration’s broader efforts to hold colleges accountable and ensure the affordability of higher education for all students. The gainful employment rule was recently revitalized to ensure that colleges deliver value to students and taxpayers. Substantial relief measures have been approved for students.
President Biden is championing increased Pell Grants, tuition-free community college, and tuition assistance at historically Black universities and minority-serving institutions.