Session: President’s Forum

1. Session: President’s Forum Responding to the Senate Task Force on Federal Regulation of Higher Education Diane Auer Jones U.S. Department of Education 2018 FSA Training Conference for Financial Aid Professionals November 2018

2. Recommendations of the Senate Task Force • Verification of Student Eligibility for Financial Aid • Return of Title IV Funds – requires legislative change • Financial Responsibility Standards • Institutional Accreditation • State Authorization of Distance Education Programs • Uniform Definitions of Clery Crimes • Consumer Information • Regulations Unrelated to Education, Safety or Stewardship – requires legislative change

3. Recommendations of the Senate Task Force • Improving the regulatory process • Selection of negotiators and use of facilitators • Bundling of unrelated issues • Estimation of burdens and PRA • Create regulatory safe harbors • Do not exceed legislative language • Notice and comment period • Implementation and enforcement of regulations

4. Verification of Student Eligibility for Financial Aid • Percentage of students flagged for verification • Use of tax returns versus tax transcripts • Looking at data regarding the impact of verification • Legislative solutions for auto-verification

5. Financial Responsibility StandardsF • Updates to Composite Score (future negotiated rulemaking) • BD NPRM – short-term solution for FASB changes • BD NPRM – realignment of financial triggers • Exploring new possibilities…. • Financial responsibility “insurance”?

6. Institutional Accreditation • Accreditation dashboard • Clarifying roles among members of the regulatory triad • Refocusing accreditation review on educational programs and opportunities • Returning to substantial compliance standard • Elimination of bright line standards (including credit hour) • Reducing the need for substantive change approval • Conducting mission-based review • Innovating to serve students better

7. State Authorization of Distance Education Programs • Upcoming negotiated rulemaking • Online institutions • Students enrolled in internships or practicums • Definition of “residency” • State licensure requirements

8. Uniform Definitions of Clery Crimes • Review of handbook • Definition of crimes under DOJ’s Uniform Crime Reporting (UCR) definitions and the National Incident-Based Reporting System (NIBRS) • Burglary versus larceny theft • VAWA requirements – stalking, domestic violence, dating violence (not crimes under UCR) • State definitions of crimes • Timely warnings • Non-campus Property

9. Consumer Information • Gainful employment disclosures • 7 loan repayment programs • Job placement rate – internal use versus external publication • College Financing Plan (formerly the Shopping Sheet) • IPEDS outcomes data • Risk-adjusted Outcomes – context matters • Scorecard • Completers (14-15/15-16 graduates) • Removing national medians and averages • Program-level outcomes (1…5…10 years post graduation)

10. Negotiated Rulemaking • Alternative models – advisory committees, etc. • Selection of negotiators • Negotiators who represent constituencies • Alternates are just that – alternates • Use of facilitators • Bundling of unrelated issues • Bucketing of related issues for purpose of achieving consensus • Use of subcommittees

11. Do Not Exceed Legislative Language • Statutory prohibition on intruding into academic matters (20 U.S.C. 1232a) • Credit hour • Gainful employment • Subregulatory guidance • Dear Colleague Letters • Clery Act (overnight trips) • Title IX – 2011 DCL

12. Implementation and Enforcement of Regs • Compliance Calendar (HEOA 2008) • Good faith efforts – technical errors (burglary vs. larceny) • Voluntary corrections program – IRS, SEC • Conducting timely program reviews, investigations of complaints, approving new programs • Consistency between regional and national office • Risk-informed regulatory approaches (but do not allow selective admissions to game the process)

13. Implementation and Enforcement of Regs • Provide safe harbors • Write in plain language • Focus group testing for consumer information collections • Repayment rate disclosure • Financial trigger notifications

14. Upcoming Rulemaking

15. Restoring the Regulatory Triad • Accreditors • Accreditation dashboard • Clarifying roles among members of the regulatory triad • Refocusing accreditation review on educational programs and opportunities • Returning to substantial compliance standard • Elimination of bright line standards (including credit hour) • Reducing the need for substantive change approval • Conducting mission-based review • Innovating to serve students better

16. Restoring the Regulatory Triad • States • Negotiated Rulemaking – State Authorization requirements • Consumer protection • Educational “quality” standards • State and local requirements – fire codes, food safety codes

17. Supporting change and innovation • Providing “safe spaces” for innovation • Leveraging experimental sites authority • Rulemaking to update the definition of regular and substantive interaction • Leveling the playing field between ground-based and online education • Competency based education, direct assessment and self-paced learning • Recognize the changing role of faculty • Supporting new governance models

18. Religious Freedom and Institutional Mission • Accreditation review should be mission-based or mission-aligned • Faith-based institutions may not be forced or coerced by accreditors to adopt polices that contradict faith-based principles • Clarify which programs at faith-based institutions are eligible for grant support

19. TEACH Grants • Statutory changes need to solve most of the problems with TEACH Grants • Regulatory changes will allow us to simplify reporting requirements, provide for corrections, and recognize that student loans are likely the first form of credit with which a student has engaged