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GRC News
Federal Updates
U.S. Department of Education
August 28, 2019 –
The Department published a notice proposing to conduct the 11th cycle in the National Postsecondary Student Aid Study (NPSAS) during the 2019-20 academic year.
The Department’s notice in the Federal Register seeks to extend the Federal Direct Loan Program Regulations for Forbearance and Loan Rehabilitation program.
August 30, 2019 –The Department finalized the Institutional Accountability regulations. The regulations revise the Federal standard for adjudicating borrower defenses to repayment claims for Federal student loans first disbursed on or after July 1, 2020, and provide for actions the Secretary may take to collect from schools the amount of financial loss due to successful borrower defense to repayment loan discharges. AACS will be announcing a webinar for membership in the near future.
The Department announced the availability of Volume 3- Calculating Awards and Packing of the 2019-2020 Federal Student Aid Handbook.
September 4, 2019 – The Department published a notice providing information to members of the public on submitting written comments for accrediting agencies currently undergoing review for purposes of recognition by the U.S. Secretary of Education.
October 1, 2019 – Deadline for schools to submit 2020–21 FISAP electronically and mail in the required signature page - see this link.
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. 4222 – Indigenous STEM Professional Development Act
a. Summary: To amend the STEM education program for American Indian, Alaska Native, and Native Hawaiian students under the Higher Education Act of 1965.
b. Status: Referred to the House Committee on Education and Labor, 8/30/19
c. Sponsor: Rep. Gregorio Sablan (D-MP) 1 Cosponsor
H.R. 4216 – Strengthening Financial Aid for Students Act (Strengthening FAFSA)
a. Summary: To amend the Higher Education Act of 1965 to increase support for working students, and for other purposes.
b. Status: Referred to House Committee on Education and Labor, 8/30/19
c. Sponsor: Rep. Antonio Delgado (D-NY) 3 Cosponsors
H.R. 4212- America's College Promise Act of 2019
a. Summary: To amend the Higher Education Act of 1965 to establish State and Indian tribe grants for community colleges and grants for Historically Black Colleges and Universities, Tribal Colleges and Universities, and Minority-Serving Institutions, and for other purposes.
b. Status: Referred to House Committee on Education and Labor, 8/27/19
c. Sponsor: Rep. Andy Levin (D-MI) 5 Cosponsors
State Updates
California Data Collection and Reporting Bill Moves to the Senate Floor
The first week of September finds only five state legislatures – including California and Michigan – actively meeting. As always, AACS will continue to keep you apprised of the latest state developments of interest to member schools.
Prior to the Labor Day weekend, California’s Senate Appropriations Committee voted 7 to 0 to amend and favorably report AB 1340 to the Senate floor. As previously reported, the measure was originally drafted as a state gainful employment bill. While it no longer contains a debt-to-earning metric leading to potential enrollment limitations, it still requires institutions regulated by the Bureau for Private Postsecondary Education (BPPE) to report individual identifying information, the program the graduate was enrolled in, and specified student loan debt information. The bill would require the bureau to match the data reported by institutions pursuant to this provision with wage data from the Employment Development Department, as specified. The bill would also require the bureau to post online “relevant program-level and institution-level statistics presented line in terms of easily understood labor market measures and consistent with all pertinent state and federal privacy laws, regarding the earnings levels of graduates and the student debt information reported.”
The August 30 amendments clarify that the bill’s provisions pertain to a graduate completing a program at a private career schools – including cosmetology and barber schools – after Jan. 1, 2020. They also state that the provisions related to reporting, matching, and internet posting would not be operative until the Director of Consumer Affairs certifies that the bureau’s information technology system has been updated to process the data stipulated in the bill. Furthermore, the Bureau for Private Postsecondary Education is required to notify institutions when this certification has occurred to provide them up to 120 days to comply with the bill’s provisions.
The Appropriation Committee held AB 1345 last week, which effectively means that the incentive compensation bill will not be further considered in 2019. It however remains a viable bill that can be revisited and adopted in 2020. As currently drafted, AB 1345 would establish and revise existing restrictions on career schools from providing specified financial incentives, compensation, commission, bonus, or payment contingent upon quotas based on securing student enrollments, admissions, financial aid awards, or sales of educational materials.
A Joint Sunset Review Oversight Hearing on California’s Board of Barbering and Cosmetology was also conducted in Sacramento the week before Labor Day. Representatives from the Board were the featured witnesses. Fred Jones from the Professional Beauty Federation of California and Wendy Cochran from California Esthetics Alliance also testified. Senator Steven Glazer, the Chair of the Senate Business, Professions and Economic Development Committee, indicated that a second hearing will likely be conducted this fall. California schools and others interested can view the hearing at this link.
In Michigan, the Senate voted unanimously last week to pass SB 441 which would preserve the current fee schedule for various beauty-industry licenses until 2023. According to an official summary, the measure amends the State License Fee Act “to delay the sunset of various application, registration, and license fees paid by individuals or entities seeking licensure or registration for various professions regulated under the Act. These fees were last increased in 2003. Under current law, those increases would be rolled back on September 30, 2019. The bill would delay this sunset until September 30, 2023…The extension of the current fees would preserve about $17.9 million in revenue each year until 2023. The revenue from these fees is deposited into the Licensing and Regulation Fund and is used to offset costs related to the licensing and enforcement of regulated professions.”
SB 441 is currently pending in the House Appropriations Committee.
Finally, Michigan Senate President Pro Tempore Aric Nesbitt (R) introduced a bill in August to establish mobile salons. SB 434 has been referred to the Senate Regulatory Reform Committee.
The text and current status of bills mentioned in this update can be found in AACS’ Bill Tracking Portal
Please do not hesitate to contact me at bnewman@abingdonstrategies.com or by phone at 202-491-5254 with comments or questions.
