What You Need to Know On May 21, the Accreditation, Innovation, and Modernization (AIM) negotiated rulemaking committee concluded the second week of negotiations a day early, reaching consensus on all elements of the draft regulations. The consensus version of the draft language included the following key concepts: accreditor standard updates that would require academic freedom protections to extend to faculty regardless of viewpoint and would require institutions to "appropriately prioritize intellectual diversity” among faculty; a requirement for accreditor internal controls to ensure accreditor compliance with antitrust laws; an obligation for accreditors to measure “success with respect to student achievement” through requiring institutions to meet student success outcome metrics; changes that would make it easier for new accreditors to enter the marketplace; changes that would make it easier for institutions to change or add institutional accreditors; and revisions to transfer of credit procedures.
Why This Is Important Because the committee reached consensus, ED is bound to adopt the consensus language in the proposed rule. ED is anticipated to open the proposed rule for public comment this summer. ED stated the agency plans to issue the final rule by November 1, 2026, with a July 1, 2027 implementation date to follow. |
ED RELEASES FAQ ON LOAN LIMITS |
What You Need to Know On May 20, ED published a Frequently Asked Questions (FAQ) document providing additional information on the loan limits established under OB3. The FAQ covers topics including student eligibility for the interim exception; clarifications on the “expected time to credential” concept; details regarding how institutions should administer the loan limits; specificity about graduate and professional student loan limits and Parent PLUS loan limits; and additional information on the lifetime maximum aggregate loan limits. Why This Is Important In addition to the FAQ document, ED also published an Electronic Announcement, rolling out a new procedure for submitting “policy-related questions” about changes described in OB3 and the new regulations promulgated under OB3. Such questions should be submitted to ob3schoolquestions@ed.gov. ED will review all questions and address them through published FAQ documents and direct responses to emails. Further, ED states the agency will host a series of webinars, virtual office hours, and an in-person town hall in Washington for purposes of further clarifying the new regulations under OB3. For upcoming event dates, please see the schedule set forth in the Electronic Announcement. |
ED RELEASES BEST PRACTICES FOR PREVENTING FAFSA FRAUD |
What You Need to Know On May 29, ED published an Electronic Announcement describing “Best Practices for Institutions to Prevent FAFSA Fraud and Protect Title IV Funds.” The Electronic Announcement sets forth the agency’s recommendations for fraud prevention best practices, including aggressive use of account holds when risk indicators appear; employing layered identity verification for higher-risk cases; cross-referencing attendance and academic engagement before sending out refunds; monitoring unusual enrollment history and transfer patterns; bolstering staff training; and referring credible fraud information to ED’s Office of the Inspector General, among others. Why This Is Important The Electronic Announcement states that institutions “should embrace the principle that fraud prevention is not only a federal financial aid function but a core component of an institution’s responsibilities under Title IV of the Higher Education Act of 1965[.]” This guidance follows several ED subregulatory pronouncements related to FAFSA identity fraud prevention, continuing to signal that this is an area of heightened, sustained attention for the Trump administration. |
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