Federal Updates

U.S. Department of Education
July 22, 2019 - the Department of Education released an Electronic Announcement confirming May 26, 2019 as the effective date of the 2016 State Authorization rules for online programs. The Rule requires that a school offering online educational programs meet state requirements applicable to distance education and document that the state has a complaint process through which a student residing in that state may bring a complaint against an out-of-state school.

July 23, 2019 - the Department of Education released an Electronic Announcement providing regarding the role that institutions have in checking the validity of a student’s high school completion as required under 34 C.F..R. § 668.16(p).

July 24, 2019 – Deadline for schools to submit an expression of interest to ED to participate in a new Payment Vehicle Account (PVA) Program pilot as a no-cost alternative for delivering credit balance refunds. See: https://ifap.ed.gov/eannouncements/070319PVAInvitation.html

July 31, 2019 – Deadline for schools to submit closeout data for 2017-18 Direct Loan Program see https://ifap.ed.gov/eannouncements/070219Addtl1718DLProgramYearCloseoutInfo.html

August 2, 2019 – Deadline for schools to comment on draft updated 2020-21 FAFSA form – see https://ifap.ed.gov/eannouncements/070819UpdatedDraft202021FSAAppMaterials.html

Other – ED has circulated a report by the Financial Literacy and Education Commission (FLEC), Best Practices for Financial Literacy and Education at Institutions of Higher Education, which provides recommendations for schools to teach financial literacy skills and provide useful information to assist students making decisions related to student borrowing. See  https://ifap.ed.gov/eannouncements/070119AvailRptBestPractices4FinLiteracyEd.html

The report provides general best practices for financial education programs. Specifically, the report makes recommendations in the following areas:

·  Providing clear, timely and customized information to inform student borrowing.

·  Effectively engaging students in financial literacy and education.

·  Targeting different student populations by use of national, institutional and individual data.

·  Communicating the importance of graduation and major on repayment of student loans.

·  Preparing students to meet financial obligations upon graduation.

Looking Ahead – 2019 FSA Training Conference. The Federal Student Aid Office has opened registration for the 2019 FSA Training Conference scheduled for December 3 to 6 in Reno, Nevada. The FSA Training Conference is training provided for financial aid professionals by the government for those institutions receiving Title IV funds and is the largest training program in the United States serving the financial aid community. In 2018 more than 2,000 unique schools registered for the conference. Registration is free.