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Federal Updates
U.S. Department of Education
Distance Education – Further the Department’s July 29, 2019 Federal Register notice regarding the legal effectiveness of the 2016 state authorization rule for distance education, there have been a number of developments and additional guidance from the Department applicable to schools providing online programs. For the latest client alert issued by Duane Morris on the topic, see Duane Morris Alert –Distance Education – State Authorization
August 20, 2019 –
The Department has published a notice in the Federal Register proposing a reinstatement of the information collection instrument that is used by the Department to select qualified institutions for Second Chance Pell.
August 21, 2019 – President Trump signed a Presidential Memorandum that will significantly streamline the process to erase federal student loan debt for totally and permanently disabled veterans. Through a process called Total and Permanent Disability (“TPD”) Discharge, veterans will now have their student loan debt discharged unless they decide to opt-out of the process.
The Department released additional information about its implementation of the additional functions of the Common Origination and Disbursement (“COD”) System, specifically describing the changes to the Subsidized Usage Limit Applies (“SULA”) calculations.
August 22, 2019 – The Department released additional information regarding the second Pell Grant Administrative Cost Allowance payments for 2018-2019 award year, and the third and final Pell Grant Administrative Cost Allowance payments for the 2017-2018 award year.
Per the Department of Education Appropriations Act, 2019, the Department released the new Cancer Treatment Deferment form for borrowers in the William D. Ford Federal Direct Loan (Direct Loan), the Federal Family Education Loan (“FFEL”), and the Federal Perkins Loan (Perkins Loan) programs.
August 23, 2019 – The Department seeks to revise the information collection system used by the Federal Student Aid (“FSA”) that is used to provide insight on program services and processes that need to be improved or modified.
August 26, 2019 – The Department announced its posting of the 2020-2021 EFC Formula Guide on the Information for Financial Aid Professionals (“IFAP”) website.
August 27, 2019 – The Department has published a notice in the Federal Register to request extending the currently approved reporting and record-keeping requirements that are contained in the General Provisions regulations as well as the specific program regulations for the Federal Perkins Loan program, the Federal Work-Study program, and the Federal Supplemental Educational Opportunities Grant program.
October 1, 2019 – Deadline for schools to submit 2020–21 FISAP electronically and mail in the required signature page - see
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.
U.S. Congress – Newly Introduced Legislation of Note
H.R. 4206 - Student and Taxpayer Protection Act
a. Summary: To amend the Higher Education Act of 1965 to include requirements for programs of training to prepare students for gainful employment in a recognized occupation.
b. Status: Referred to House Committee on Education and Labor, 8/23/19
c. Sponsor: Rep. Mark Takano (D-CA) 1 Cosponsor
H.R. 4196 - To amend the Higher Education Act of 1965 to include child development and early learning as community services under the Federal work-study program.
a. Status: Referred to House Committee on Education and Labor, 8/20/19
b. Sponsor: Rep. Joaquin Castro (D-TX) 2 Cosponsors
