USDE Calls for Nominations for Proposed Regulations for the Federal Student Aid Programs

USDE Calls for Nominations for Proposed Regulations for the Federal Student Aid Programs

Following the Supreme Court ruling rejecting the Biden Administration’s Student Debt Relief Plan to forgive student loan debt, the U.S. Department of Education (USDE) has scheduled negotiated rulemaking to begin in October focused on regulations for Federal Student Aid programs. This issue has taken priority over the accreditation negotiated rulemaking.

USDE must receive nominations for Federal Student Aid program negotiators to serve on the committee on or before September 14, 2023. The virtual negotiating sessions will be held in October, November, and December. At the conclusion of the sessions, USDE will draft proposed regulations for public comment. This effort will take a minimum of 18 months to finalize, and negotiated new rules will not go into effect until July 2025, which is after the next presidential election.

The challenge now is that USDE is stretched very thin should they try to move forward on both student loan forgiveness and accreditation rulemaking. In addition, the student loan rulemaking is likely to be challenged in Court.

National Advisory Committee on Institutional Quality and Integrity Met in August

The National Advisory Committee on Institutional Quality and Integrity (NACIQI) met as a committee and education staff, in person, in August. All other participants joined the meeting virtually. NACIQI is the advisory board to the Secretary of Education that provides recommendations on the recognition of accrediting organizations by USDE. Assistant Secretary of Postsecondary Education Dr. Nasser Paydar spoke to NACIQI, addressing the accomplishments and the goals of USDE. Click here for a report of the meeting.

The Policy Subcommittee of NACIQI wrote a report making regulatory recommendations for USDE to consider during accreditation negotiated rulemaking, if it goes forward, and for Congress as they reauthorize the Higher Education Act. The recommendations include a review of institutional and accreditor complaint policies; changes to outcomes/student achievement standards; public input into the recognition process, and changes to the recruitment of public members of accrediting commissions. Each of these proposals could have an impact on institutions if accreditors are required to make changes due to these recommendations.

U.S. Department of Education Guidance on Complaints

On August 7, 2023, the USDE Office of Postsecondary Education distributed a letter titled, “Guidance for Ensuring Complaint Procedures for Accrediting Agencies are Timely, Fair and Equitable.” 

USDE stated, “Every review of an accrediting agency’s compliance with §602.23(c)(1) will be a unique, fact-specific evaluation, based on all relevant facts and circumstances available to the Department on whether the agency has demonstrated that its complaint procedures and the application of those procedures are “timely, fair, and equitable.” The Department stated that other factors “may be considered” when determining if compliance with this guidance provides no consistency or specific direction for accrediting organizations to follow. The lack of specific regulations in this area may lead to subjectivity by the Department in determining compliance. This may also lead to institutions’ complaint procedures being treated differently by accreditors based on the USDE concerns at the time.