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Federal Update – May 16

Federal Update – May 16

GOVERNMENT RELATIONS HIGHLIGHTS

  • FVT/GE Reporting Guidance: The U.S. Department of Education published the NSLDS Financial Value Transparency and Gainful Employment (FVT/GE) User Guide, which provides instructions and guidance for complying with the FVT/GE reporting requirements via the National Student Loan Data System (NSLDS®).
  • FAFSA Rollout: Secretary Cardona faced intense pressure from the House Education and Workforce Committee on Tuesday, May 7, 2024, as he testified on the failed FAFSA rollout, the Department of Education’s FY 2025 Budget Request, the Department’s recent rulemaking efforts, and a number of other education matters.
  • Title IX: Duane Morris has published a client alert that provides in-depth analysis of the Final Title IX Rule that was officially published in the Federal Register on April 29, 2014.

FVT/GE REPORTING GUIDANCE

What You Need to Know

The U.S. Department of Education published the NSLDS Financial Value Transparency and Gainful Employment (FVT/GE) User Guide, which provides instructions and guidance for complying with the FVT/GE reporting requirements via the National Student Loan Data System (NSLDS). The Department additionally hosted a webinar on May 1, 2024, which provided additional guidance on the NSLDS reports. As a reminder, the reporting deadlines for FVT/GE have been extended to October 1, 2024. For FVT/GE purposes, an institution must annually report student-specific data and program-specific data to NSLDS. In its announcement, the Department indicated that it will publish additional individual volumes of the User Guide covering a range of topics, including: reporting methods (batch, web, spreadsheet submittal), reporting content, the FVT/GE Completers List, the FVT/GE calculations, and other relevant topics.

Why This is Important to You

The Department’s publication of the User Guide is intended to assist institutions comply with the October 1, 2024 FVT/GE reporting deadlines. This reporting requirement pertains to all AACS member institutions. The required data must be reported by submitting files to NSLDS via the Student Aid Information Gateway or through the online process.

For more information:

Electronic Announcement

NSLDS FVT/GE User Guide Introduction

NSLDS Reporting Webinar

FAFSA ROLLOUT

What You Need to Know

Secretary Cardona faced intense pressure from the House Education and Workforce Committee on Tuesday, May 7, 2024, as he testified on the failed FAFSA rollout, the Department of Education’s FY 2025 Budget Request, the Department’s recent rulemaking efforts, and a number of other education matters. This was the fourth time Secretary Cardona has testified in front of the House Education and Workforce Committee on the Department’s FY 2025 Budget Request. Chairwoman Virginia Foxx (R-NC) set the tone for the hearing with her opening remarks, “You have presided over the greatest decline of educational attainment and institutional legitimacy in the history of our nation.” Chairwoman Foxx was joined by all of the Committee Members in seeking accountability and answers from the Secretary for the mismanagement of the FAFSA rollout.

Congressman Lloyd Smucker (R-PA) questioned the Department’s new requirements contained within its Certification Procedures Final Rule published in October 2023. He requested that the Department further its delay in enforcement of the revised 100% Certification Rule until January 1, 2025 in order to provide institutions with additional time to comply with this certification requirement. The Secretary failed to respond to this request, instead noting that the Certification Procedures Final Rule is aimed at ensuring that institutions of higher education maintain and provide high-quality education to students.

Following the hearing, the Department has taken several actions to help resolve problems associated with the FAFSA rollout. First, the Department announced that it has partnered with the Educational Credit Management Corporation, a nonprofit student loan guaranty agency, that will be responsible for implementing up to $50 million in grants for organizations that are able to increase FAFSA submissions. Second, the Department additionally announced that that it will process paper versions of the Free Application for Federal Student Aid “by the end of June” and that schools will be able to submit corrections by then. 

Why This is Important to You

The botched FAFSA rollout has been felt across higher education. During a House oversight hearing, Members of Congress noted the impact that the troubled rollout will have on student enrollment in the upcoming Fall. Secretary Cardona did not provide any new solutions, instead reiterating that the Department is working on this issue and that previous data errors have been fixed. 

Additionally, during the hearing Congressman Lloyd Smucker (R-PA) pressed Secretary Cardona to delay enforcement of the newly revised 100% Certification Rule until January 1, 2024. Secretary Cardona did not directly respond to this request. We will continue to provide membership with any updates on this matter, as we know its one of the most important issues facing our member institutions.

For more information:

Full Committee Hearing

Hearing Recap

Department Press Release

DUANE MORRIS ALERT ON TITLE IX FINAL RULE

What You Need to Know

Duane Morris has published a client alert that provides in-depth details on the final Title IX Rule that was officially published in the Federal Register on April 29, 2014. The Final Rule is scheduled to take effect on August 1, 2024. The final rule contains significant changes including expanding the scope of complaints that institutions must investigate, increasing employee reporting responsibilities, and clarifying institutional obligations regarding discrimination based on pregnancy or related conditions. The final rule is not retroactive—it only applies to complaints of sex discrimination regarding alleged conduct that occur on or after the effective date. 

Why This is Important to You

The Title IX Final Rule has significant compliance implications for AACS members. Colleges will be required to change policies and procedures implementing the regulations. They will also need to train all employees in their new reporting obligations under the rule. Duane Morris attorneys will be presenting a series of webinars to discuss these changes and other implications of the Title IX Final Rule. We encourage all AACS Members to consult the client alert and attend an upcoming webinar in order to understand the impact that the Final Rule will have on your institution.

For more information: 

Title IX Final Rule

DM Client Alert

For More Information

If you have any questions about this Update, please email info@beautyschools.org.

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State Update – June 4

The first week of the June finds only 14 state legislatures actively meeting. Recent and upcoming legislative adjournments include Louisiana on June 3 and New York on June 6. 

Another four states – Arizona, Delaware, New Hampshire and Rhode Island – will be adjourning their respective 2024 legislative sessions at the end of the month.

Learn More >