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Shoptalk 527, October 27, 2009

Industry Update

ED publishes final rules for accreditation and institutional eligibility

On October 27, ED published final rules resulting from Team III negotiations that occurred during the spring 2009 Negotiated Rulemaking sessions. These new rules, which are effective July 1, 2010, make several changes relating to accrediting agencies and institutional eligibility as described below.

The rules are necessary to implement changes to the Higher Education Act of 1965, as amended (HEA), resulting from enactment of the Higher Education Reconciliation Act of 2005 (HERA), and the Higher Education Opportunity Act (HEOA), and to clarify, improve, and update the current regulations.

The sections of the Title IV regulations where the changes occur are noted following each change. The final rules:

  • Add the statutory definition of "distance education", and add a definition of "correspondence education" to (600.2, 600.3, and 602.3)
  • Add a definition of a "direct assessment program", an instructional program that uses or recognizes direct assessment of a student's learning in lieu of credit or clock hours (602.3)
  • Add a definition of a "teach-out plan" and require agencies to require the institutions they accredit to submit a teach-out plan to the agency under certain circumstances (602.3 and 602.24)
  • Implement several new requirements pertaining to distance education and correspondence education (602.16, 602.17, 602.18, and 602.27)
  • Expand due process requirements for agencies (602.18, 602.23, and 602.25)
  • Require agencies to confirm that institutions they accredit have transfer of credit policies (602.24)
  • Require that accreditation team members be well-trained and knowledgeable about their responsibilities regarding distance education (602.15)
  • Require that agencies monitor enrollment growth at institutions they accredit (602.19)
  • Expand agency disclosure requirements (602.26; see also section 496(c)(7) of the HEA)
  • Add a definition of "recognition" (602.3)
  • Modify recordkeeping and confidentiality requirements (602.15 and 602.27)
  • Clarify existing requirements related to substantive change and add flexibility to accrediting agencies in granting prior approval of additional locations under specified circumstances (602.22)
  • Amend subpart C by combining current subparts C and D into one subpart in order to streamline procedures for agency review; establishing the senior Department official as the deciding official, with appeal to the Secretary; and providing a list of various laws regarding public requests for information with which the Secretary must comply.

More information
The final rules are available in the October 27, 2009, Federal Register.

TG will provide an integrated version of the regulations on TG Online following the publication of all final rules resulting from the spring 2009 Negotiated Rulemaking sessions.

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ED to correct Perkins loan limits in 2009-10 FSA Handbook — TG offers revised version

ED's 2009-10 Federal Student Aid Handbook (FSA Handbook), which is posted on its IFAP web site, incorrectly states Perkins annual and aggregate loan limits that were increased by the Higher Education Opportunity Act (HEOA) and became effective August 14, 2008. TG's bookmarked, and easily searched PDF of compiled volumes, has been corrected.

  • On page 3-131, under the "Chapter Highlights" sidebar to reflect
    • "Undergraduate: $5,500/year and $27,500/agg." and
    • "Graduate: $8,000/year and $60,000/agg."
  • On page 3-134, to reflect an aggregate limit of "$27,500 for an undergraduate student who has completed two academic years and is pursuing a bachelor's degree."

Accessing the revised FSA Handbook
To access this practical research tool, visit TG Online at www.tgslc.org/resources/fsa_handbook.cfm.

For questions about the 2009-10 FSA Handbook, contact TG customer assistance at (800) 845-6267, or send an e-mail message to cust.assist@tgslc.org.

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