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Russ	Poulin,	Director,	Policy	&	Analysis,	WCET		 	 NUTN	/	SUNY	Meetings	
wcet.wiche.edu	and	wcetfrontiers.org	 	 February	/	March	2018	
rpoulin@wiche.edu	 	
	 	
WGU	Audit	by	the	Office	of	Inspector	General		
OIG	found	that	WGU	was	not	eligible	to	disburse	Title	IV	financial	aid	and	recommended	it	
return	more	than	$700	million	in	aid.	Issues	around	“regular	and	substantive	interaction,”	the	
definition	of	“instructor,”	and	“self-paced”	were	all	cited.	The	recommendation	goes	to	the	
Department	of	Education	financial	aid	staff.	They	may	rule	soon	and	the	recommendation	is	
expected	to	be	rejected.	CBE	and	distance	education	providers	should	watch	closely.	
State	Authorization	of	Distance	Education	
In	December	2016,	the	Department	of	Education	released	proposed	state	authorization	for	
distance	education	regulations	to	be	enforced	beginning	July	1,	2018,	including:		
• Demonstrate	Compliance.	Institutions	must	demonstrate	that	it	has	the	authorization	
in	each	state	in	which	it	enrolls	distance	students	who	are	receiving	federal	financial	
aid.	Authorization	may	be	by	the	state	or	through	reciprocity.	
• Recognize	Reciprocity.	Reciprocity	is	a	path	to	authorization.	Reciprocity	agreements	
must	allow	states	to	enforce	“consumer	protection”	laws,	but	the	Department	sent	a	
letter	to	SARA	and	WCET	clarifying	that	it	does	not	negate	SARA’s	rules.	
• Redefines	Student	“Residence.”	Conflicts	with	state	definitions.	
• New	‘Public’	Disclosures.	Inform	students	via	a	website…	
o The	institutions	authorization	in	the	student’s	state	and	source	of	approval.	
o ‘Document’	complaint	process	in	each	student’s	state.		
o ‘Adverse	actions’	from	states	or	accreditors	for	last	five	years.	
o Refund	policies	required	by	states.	
o For	programs	leading	to	professional	licensure/certification…what	the	state’s	
education	prerequisites	are	and	if	your	program	meets	those	requirements.		
• New	‘Individualized’	Disclosures.	Inform	students	directly	via	email	or	mail…	
o If	you	do	not	(or	have	not	determined)	that	you	meet	professional	
licensure/certification	educational	requirements	in	student’s	state.	
o Written	acknowledgement	from	student	who	enrolls	anyway.	
o New	adverse	actions	(within	30	days)	or	loss	of	licensure	approval	(14	days).	
Resources	
Reactions	to	final	state	authorization	regulation	in	WCET	Frontiers	blog:	http://bit.ly/2i7nL6z	
US	ED	clarifies	intent	on	reciprocity:	https://wcetfrontiers.org/2017/01/09/ed-clarifies-reciprocity/	
WCET	State	Authorization	Network:	http://wcet.wiche.edu/advance/state-authorization-network	
Current	academic	integrity	requirement	(Chapter	34,	602.179g)):	http://bit.ly/2FuHpqc	
Senate	HELP	Committee	members:	https://www.help.senate.gov/about/members	
“Forever”	GI	Bill:	https://studentveterans.org/aboutus/government-affairs/forevergibill
Russ	Poulin,	Director,	Policy	&	Analysis,	WCET		 	 NUTN	/	SUNY	Meetings	
wcet.wiche.edu	and	wcetfrontiers.org	 	 February	/	March	2018	
rpoulin@wiche.edu	 	
	 	
FEDERAL	REGULATORY	UPDATE	
Reauthorization	of	the	Higher	Education	Act	
The	Higher	Education	Opportunities	Act	of	2008	includes	most	of	the	federal	regulations	for	
higher	education	and	sets	the	standards	for	federal	financial	aid	eligibility.	Both	houses	of	
Congress	are	considering	“reauthorization”	(updating)	the	act	and	changing	the	regulations.	
• House	Prosper	Act	–	a	product	of	one	party.	
o The	definition	of	“distance	education”	is	replaced	by	“competency-based	
education.”	The	definition	of	“regular	and	substantive	interaction”	is	changed.	
o Removed	the	federal	state	authorization	for	distance	education	requirement.	
o Changes	accrediting	agency	requirements,	replacing	specific	oversight	of	
distance	education	with	specific	oversight	of	competency-based	education.	
o Expands	aid	eligibility	to	non-accredited	providers	partnering	with	colleges.	
• Senate	is	more	bipartisan,	held	several	hearings,	and	is	asking	for	input.	Senate	Health,	
Education,	Labor,	and	Pensions	(HELP)	Committee	members	hail	from:	AL,	AK,	CO,	CT,	
GA,	IN,	KS,	KY,	LA,	MA,	ME,	MN,	NH,	NC,	PA,	SC,	TN,	UT,	VA,	VT,	WA,	WI,	WY.		
Student	Identity	for	Academic	Integrity	and	Financial	Aid	Fraud	
Chapter	34,	602.17(g)	places	on	accrediting	agencies	the	responsibility	to	require:	“institutions	
that	offer	distance	education	or	correspondence	education	to	have	processes	in	place	through	
which	the	institution	establishes	that	the	student	who	registers	in	a	distance	education	or	
correspondence	education	course	or	program	is	the	same	student	who	participates	in	and	
completes	the	course	or	program	and	receives	the	academic	credit.”	Since	placed	into	law	in	
2008,	there	have	been	two	Department	of	Education	Office	of	Inspector	General	reports	that	
have	been	highly	critical	of	the	Department’s	oversight	of	financial	aid	fraud	and	the	student	
identity	verification	for	coursework	standards	set	out	above.	The	House	PROSPER	bill	makes	
some	changes.	We	need	to	assure	that	fraud	and	academic	integrity	are	not	confused.	
New	“Forever”	GI	Bill	
Last	year,	this	Bill	extended	the	deadlines	for	veterans	and	their	families	to	use	their	GI	Bill	
benefits	beyond	the	previous	15-year	deadline.	It	also	extends	benefits	to	all	Purple	Heart	
recipients,	restores	benefits	if	a	college	closes,	and	expands	aid	to	non-accredited	providers.		
Negotiated	Rulemaking	on	Gainful	Employment	and	Borrower	Defenses	
Just	as	these	regulations	were	set	to	go	into	effect	last	July,	the	Department	delayed	them.	
Negotiated	Rulemaking	is	under	way.	The	regulations	will	likely	be	addressed	in	reauthorization	
or	greatly	reduced	in	scope.

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Russ Poulin: WCET Federal Regulation Updates Feb 2018

  • 1. Russ Poulin, Director, Policy & Analysis, WCET NUTN / SUNY Meetings wcet.wiche.edu and wcetfrontiers.org February / March 2018 rpoulin@wiche.edu WGU Audit by the Office of Inspector General OIG found that WGU was not eligible to disburse Title IV financial aid and recommended it return more than $700 million in aid. Issues around “regular and substantive interaction,” the definition of “instructor,” and “self-paced” were all cited. The recommendation goes to the Department of Education financial aid staff. They may rule soon and the recommendation is expected to be rejected. CBE and distance education providers should watch closely. State Authorization of Distance Education In December 2016, the Department of Education released proposed state authorization for distance education regulations to be enforced beginning July 1, 2018, including: • Demonstrate Compliance. Institutions must demonstrate that it has the authorization in each state in which it enrolls distance students who are receiving federal financial aid. Authorization may be by the state or through reciprocity. • Recognize Reciprocity. Reciprocity is a path to authorization. Reciprocity agreements must allow states to enforce “consumer protection” laws, but the Department sent a letter to SARA and WCET clarifying that it does not negate SARA’s rules. • Redefines Student “Residence.” Conflicts with state definitions. • New ‘Public’ Disclosures. Inform students via a website… o The institutions authorization in the student’s state and source of approval. o ‘Document’ complaint process in each student’s state. o ‘Adverse actions’ from states or accreditors for last five years. o Refund policies required by states. o For programs leading to professional licensure/certification…what the state’s education prerequisites are and if your program meets those requirements. • New ‘Individualized’ Disclosures. Inform students directly via email or mail… o If you do not (or have not determined) that you meet professional licensure/certification educational requirements in student’s state. o Written acknowledgement from student who enrolls anyway. o New adverse actions (within 30 days) or loss of licensure approval (14 days). Resources Reactions to final state authorization regulation in WCET Frontiers blog: http://bit.ly/2i7nL6z US ED clarifies intent on reciprocity: https://wcetfrontiers.org/2017/01/09/ed-clarifies-reciprocity/ WCET State Authorization Network: http://wcet.wiche.edu/advance/state-authorization-network Current academic integrity requirement (Chapter 34, 602.179g)): http://bit.ly/2FuHpqc Senate HELP Committee members: https://www.help.senate.gov/about/members “Forever” GI Bill: https://studentveterans.org/aboutus/government-affairs/forevergibill
  • 2. Russ Poulin, Director, Policy & Analysis, WCET NUTN / SUNY Meetings wcet.wiche.edu and wcetfrontiers.org February / March 2018 rpoulin@wiche.edu FEDERAL REGULATORY UPDATE Reauthorization of the Higher Education Act The Higher Education Opportunities Act of 2008 includes most of the federal regulations for higher education and sets the standards for federal financial aid eligibility. Both houses of Congress are considering “reauthorization” (updating) the act and changing the regulations. • House Prosper Act – a product of one party. o The definition of “distance education” is replaced by “competency-based education.” The definition of “regular and substantive interaction” is changed. o Removed the federal state authorization for distance education requirement. o Changes accrediting agency requirements, replacing specific oversight of distance education with specific oversight of competency-based education. o Expands aid eligibility to non-accredited providers partnering with colleges. • Senate is more bipartisan, held several hearings, and is asking for input. Senate Health, Education, Labor, and Pensions (HELP) Committee members hail from: AL, AK, CO, CT, GA, IN, KS, KY, LA, MA, ME, MN, NH, NC, PA, SC, TN, UT, VA, VT, WA, WI, WY. Student Identity for Academic Integrity and Financial Aid Fraud Chapter 34, 602.17(g) places on accrediting agencies the responsibility to require: “institutions that offer distance education or correspondence education to have processes in place through which the institution establishes that the student who registers in a distance education or correspondence education course or program is the same student who participates in and completes the course or program and receives the academic credit.” Since placed into law in 2008, there have been two Department of Education Office of Inspector General reports that have been highly critical of the Department’s oversight of financial aid fraud and the student identity verification for coursework standards set out above. The House PROSPER bill makes some changes. We need to assure that fraud and academic integrity are not confused. New “Forever” GI Bill Last year, this Bill extended the deadlines for veterans and their families to use their GI Bill benefits beyond the previous 15-year deadline. It also extends benefits to all Purple Heart recipients, restores benefits if a college closes, and expands aid to non-accredited providers. Negotiated Rulemaking on Gainful Employment and Borrower Defenses Just as these regulations were set to go into effect last July, the Department delayed them. Negotiated Rulemaking is under way. The regulations will likely be addressed in reauthorization or greatly reduced in scope.