GRC News

Federal Updates

U.S. Department of Education

January 3, 2020 – The Federal Student Aid released a series of updates to the quarterly application, disbursement, and portfolio reports on its FSA Data Center to include data through September 30, 2019. As part of this release, servicer performance allocation metrics for the period beginning September 1, 2019, were also refreshed. Below are some key findings from the Quarterly Reports:

·         Through September 30, 2019, approximately 16.1 million applications were submitted for the 2019-2020 application cycle, a 3.1 percent decrease from the same time period in the prior year.

·         As of September 2019, approximately 7.8 million DL borrowers were enrolled in IDR plans, an eight-percent increase from September 2018.

·         During the last quarter, Federal Student Aid received approximately 15,000 new borrower defense applications, bringing the total application count to approximately 288,000. Almost 48,000 applications have been approved, resulting in nearly $535 million in discharges. 

The Department published a notice in the Federal Register announcing the 2020-21 award year deadline dates for the submission of requests and documents from postsecondary institutions for the Federal Perkins Loan (Perkins Loan) Program, Federal Work-Study (FWS), and Federal Supplemental Educational Opportunity Grant (FSEOG) programs (collectively, the “Campus-Based programs”), Catalog of Federal Domestic Assistance (CFDA) numbers 84.038, 84.033, and 84.007. 

Looking Ahead – Next week the House will take up H.J.Res.76, a Congressional resolution of disapproval on the Department of Education’s Borrower Defense to Repayment Rule. Sponsored by Rep. Susie Lee (D-NV), the Joint Resolution states “that Congress disapproves the rule submitted by the Department of Education relating to “Borrower Defense Institutional Accountability” (84 Fed. Reg. 49788 (September 23, 2019)), and such rule shall have no force or effect.” This resolution is an attempt by House Democrats to undo the 2019 Borrower Defense Rule and force a long term return to the 2016 BDR rule. The AACS Government Relations Committee and AACS lobbying team in D.C. are involved in advocacy to oppose this resolution in the House. Should it pass the House, the Senate would need to approve it. 

U.S. Congress – Newly Introduced Legislation of Note 

S.3149 – A bill to provide for a Federal partnership to ensure educational equity and quality.

a.       Status: Referred to HELP Committee, 1/6/20
b.       Sponsored: Sen. Ben Cardin (D-MD) 1 Cosponsor 

 

State Update

Virginia Regulators and Legislators Consider Hour Reductions

Happy New Year! 
The following states kicked-off their 2020 legislative sessions this week or last: 

California, Colorado, Idaho, Illinois, Indiana, Kentucky, Maine, Michigan, Mississippi, Missouri, Nebraska, New Hampshire, Ohio, Pennsylvania, Rhode Island, Vermont, Virginia and West Virginia.    

In 2020, 46 state legislatures will commence legislative sessions between January 1 and March 9.  Four states – Montana, Nevada, North Dakota and Texas – do not have a regular legislative session scheduled in 2020.  As always, AACS will keep you apprised of the latest state legislative and regulatory developments of interest to member schools.      

In Virginia, a bill to reduce the course of instruction for cosmetology and barbering to a maximum of 1,000 hours was pre-filed last week. A Committee referral for HB 514 is pending. Last year, a similarly worded bill was unanimously passed by the Senate before being killed by a deadlocked House Subcommittee. 

Virginia’s Board for Barbers and Cosmetology will discuss establishing a hair-only license and a “stakeholder request” that the Board support a 1,000-hour cosmetology curriculum at its January 13, 2020 meeting in Richmond.  Under current law, the Board has the discretion to set the hours and training requirements for barbering, cosmetology, nail care, waxing, tattooing, body-piercing, and esthetics. 

An Oklahoma deregulation bill was filed last week by Senator Micheal Bergstrom (R) who represents the Northeast corner of the state.  SB 1166 would eliminate licensure for cosmeticians, hairbraiders and demonstrators. Oklahoma cosmeticians are currently required to obtain a 600-hour license to perform shampooing, hair arraigning and the application of makeup, including, but not limited to, using hairstyling tools and products.  Hairbraiders are not required to complete a specified course of instruction at a school but must pass a safety and sanitation test to perform hairbraiding, hairweaving techniques, and the application of hair extensions in a licensed cosmetology establishment. 

The text of the bills listed in this report can be found in AACS’ Bill Tracking Portal.

Please do not hesitate to contact Brian Newman at bnewman@abingdonstrategies.com or by phone at 202-491-5254 with comments or questions.

Bill Enactment 

New York A57 – Effective June 17, 2020
The Act establishes domestic violence and sexual assault awareness education courses for persons for persons engaged in the practice of nail specialty, waxing, natural hair styling, esthetics and cosmetology.  The Division of Licensing Services “shall ensure that domestic violence and sexual assault awareness education courses are made available to all licensees and applicants for a license or renewal…and that such courses are offered through the department's website.”

Additional Bill Introduction

Utah SB 23
The bill makes modifies provisions related to the Division of Occupational and Professional Licensing.  Provisions of interest to AACS member schools include the establishment of 1,600-hour hair design apprenticeships and the removal of the state’s “good moral character” provision for licensure.