Federal Update - October 16

October 16, 2024

GOVERNMENT RELATIONS HIGHLIGHTS

BDR Lawsuit Update: On October 11, 2024, the Department of Education petitioned the Supreme Court to review the U.S. Court of Appeals for the Fifth Circuit’s grant of a preliminary injunction of the new Borrower Defense to Repayment (“BDR”) Final Rule in Department of Education v. Career Colleges and Schools of Texas (“CCST”).

FAFSA Processing: The Department announced that it had not finished processing the corrections to papers forms by the end of September, and instead continues to experience lag in its processing time.

Recertification Training: The Department published an Electronic Announcement informing Title IV institutions that it has uploaded a webinar recording (along with a transcript) and presentation slides on assisting schools with the completion and submission of the recertification application.

BDR LAWSUIT UPDATE

What You Need To Know

On October 11, 2024, the Department of Education petitioned the Supreme Court to review the U.S. Court of Appeals for the Fifth Circuit’s grant of a preliminary injunction of the new Borrower Defense to Repayment (“BDR”) Final Rule in Department of Education v. Career Colleges and Schools of Texas (“CCST”). CCST has 30 days to file a brief arguing that the Supreme Court should not review this case. The Supreme Court will grant the review if at least four justices vote in favor of the review.

Why This is Important

The Supreme Court is the last appeal option for the Department to attempt to reverse the preliminary injunction. Following this decision, the case will return to the District Court for further proceedings.

For more information:

Supreme Court Docket

UPDATES ON 2024-25 FAFSA PAPER PROCESSING

What You Need To Know

The Department announced that it had not finished processing the corrections to papers forms by the end of September, and instead continues to experience lag in its processing time. The current timeline for processing 2024-25 paper FAFSA applications is approximately within a month after submission, however, the Department is working to shorten this period to 7-10 days.

Why This is Important

The Department continues to delay its estimated timeline for processing paper FAFSA forms. This delay may lead to institutions not having an Institutional Student Information Record (“ISIR”) or an official ISIR to award and disburse Title IV funds to students who cannot access the online FAFSA form. We will continue to provide updates on FAFSA processing developments.

For more information:

Electronic Announcement

RECERTIFICATION TRAINING

What You Need To Know

The Department published an Electronic Announcement informing Title IV institutions that it has uploaded a webinar recording (along with a transcript) and presentation slides on assisting schools with the completion and submission of the recertification application. The resources are available in the FSA Training Center under “Recorded Webinars and Training.”

Why This is Important

Title IV institutions must submit a completed recertification application no later than 90 days prior to the expiration date of its Program Participation Agreement (“PPA”). The Department previously announced that it will waive the 90-day requirements for institutions with a PPA that expires in December 2024.

For more information:

Electronic Announcement

2024 VIRTUAL FEDERAL STUDENT AID TRAINING CONFERENCE

What You Need To Know

The 2024 Federal Student Aid Training Conference will take place virtually Dec. 3–6, 2024. The Conference will include addresses from U.S. Department of Education leadership, five general sessions, two Foreign School sessions, 21 breakout sessions (covering the latest in financial aid policy and operational updates), and eight Virtual Exhibit Hall stations. The Department will release a draft agenda in November.

Registration is free and found on the FSA Training Conference Home on FSA Partner Connect. 

Why This Is Important

The Conference will cover a wide-range of financial aid topics for financial aid professionals.

For more information:

2024 Virtual Student Aid Training Conference

Electronic Announcement

CFPB ACTION

What You Need To Know

The Consumer Financial Protection Bureau (“CFPB”) has officially banned Edjudicate, a private dispute resolution platform, from arbitrating disputes about consumer financial products following its investigation that the company misled student borrowers about its neutrality and initiated sham arbitration proceedings. The order permanently bans Ejudicate from arbitrating disputes about consumer financial products or services and additionally imposes a nominal civil penalty of $1 (as the company has demonstrated an inability to pay a more severe fine).

Why This Is Important

Under the Consumer Financial Protection Act, the CFPB has the authority to take action against institutions violating consumer financial protection laws, including service providers or firms providing substantial assistance to companies offering consumer financial products or services that engage in unfair, deceptive, or abusive acts or practices.

For more information:

CFPB Press Release