ED Announces New Negotiated Rulemaking Effort

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September 10, 2009

Changes to Title IV regulations on program integrity and foreign schools will be considered by two negotiated rulemaking panels this fall, according to a notice from the Department of Education inviting nominations for representatives. The deadline for nominations is September 25.

Team I will consider program integrity issues, including incentive compensation, definition of credit hour, misrepresentation of information provided to students and prospective students, agreements between institutions, term-based module programs, and timeliness and disbursement of Title IV funds. NACUBO intends to nominate representatives to serve on this committee.

ED notes that while it agrees that changes to the financial responsibility standards may be beneficial, significant analysis must be done before ED will be ready to bring the issue to the negotiating table. As a result, the agenda for Team I will not include financial responsibility. NACUBO submitted testimony in June raising the issue, and staff has met with ED officials to discuss these efforts.

Team II will address issues related to participation in the guaranteed loan programs by foreign institutions, including financial statements, compliance audits, nonprofit status, and financial responsibility for public institutions.