In October 2023, the Biden-Harris Administration released rules to strengthen and enforce the accountability of higher education institutions as well as bolster consumer protection for student borrowers. These rules, which went into effect on July 1, 2024, make some significant policy changes related to the field of higher education in prison.

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From the press release: 

"These regulations will allow the Department of Education (Department) to better protect taxpayers from the negative effects of sudden college closures, will restrict colleges from withholding course credits paid for with Federal money from students’ transcripts, and require colleges to clearly communicate to students how much financial aid they will receive—a common source of confusion and error. The regulations also provide a more streamlined process for States to approve postsecondary opportunities for students without a high school diploma or its equivalent."

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From the fact sheet:

"Certification Procedures
These rules govern the agreements institutions sign with the Department to participate in its financial aid programs. The final regulations strengthen the Department’s ability to increase scrutiny of institutions that exhibit concerning signs and allow us to impose conditions to mitigate the risk posed to students and taxpayers. They also add conditions that institutions will agree to when signing these agreements. The provisions in the final rule include:

• Allowing the Department to request teach-out plans or agreements from provisionally certified institutions that are at risk of closure.
• Requiring entities with direct or indirect ownership of a proprietary or private nonprofit institution sign the institution’s Program Participation Agreement. This expands on guidance issued by the Department last year on when it will seek these signatures on a case-by-case basis.
• Limiting career training programs to no more than 100 percent of the length mandated by the State for certification or licensure. The final rule clarifies that this applies only to new programs as of July 1, 2024, excludes fully online programs, and does not apply to State requirements for degree programs.
• Requiring all programs to show that they meet any required programmatic accreditation and State licensure requirements so that students can obtain employment, if the State has them. The final rules clarify that this applies only to new programs as of July 1, 2024, give institutions an option to show that they meet requirements in a State where a student attests they intend to move, and clarify that programs that lead to provisional licensure or licensure through reciprocity agreements would meet this requirement.
• Protecting students from the effects of closures by requiring distance education providers to comply with State laws related to closure in any State where they serve students. This includes requirements related to teach-outs, record retention, tuition recovery funds, and surety bonds. The final rule removes provisions in the proposed rule that would also have covered State laws specifically related to misrepresentation and recruitment at postsecondary institutions because we believe those items are covered by generally applicable laws against unfair and deceptive acts or practices.
• Preventing institutions from withholding transcripts for credits paid for with Title IV aid. The final rule removed a provision related to return of title IV funds. ‍

Ability to Benefit
The Higher Education Act establishes three “ability to benefit” (ATB) alternatives that a student without a high school diploma may pursue to access Federal financial aid, including participating in a State process approved by the Department. ATB students are required to enroll in an eligible career pathway program to access Federal student aid.

The final ATB regulations establish safeguards to ensure State processes are adequate and establish reporting requirements for institutions participating in the State process. The regulations also define an eligible career pathway program (ECPP) and set clear documentation standards for institutions to demonstrate compliance. The final rule generally follows the proposed rule, which was agreed to by consensus by non-Federal negotiators. However, the Department simplified the process for approving ECPPs to focus on approving at least one ECPP per institution, with the option for additional approval of more ECPPs if there are concerns. The proposed rule would have required Department approval of all ECPPs."

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