Federal Update - September 18

September 18, 2024

GOVERNMENT RELATIONS HIGHLIGHTS

FVT/GE Reporting Delay: The Department delayed the Financial Value Transparency and Gainful Employment reporting requirements from October 1, 2024 to January 15, 2025.

BDR Update: In United States Department of Education v. Career Colleges and Schools of Texas, the Supreme Court granted the Department’s request to extend the timeline from September 10, 2024 to October 10, 2024 for the Department to file a petition for the Supreme Court to review the Fifth Circuit’s decision.



Navient Settlement: Navient agreed to a settlement with the Consumer Financial Protection Bureau (“CFPB”) to pay $120 million to resolve allegations that it illegally serviced federal student loans.

FVT/GE REPORTING DELAY

What You Need To Know

Last week, the Department delayed the Financial Value Transparency and Gainful Employment reporting requirements from October 1, 2024 to January 15, 2025. This comes after Members of Congress, interest groups and institutions throughout higher education pressured the Department to delay the reporting deadline, and following the Department’s announcement on August 30, 2024 that that it temporarily suspended reviewing NSLDS FVT/GE Completers Lists. 

Why This Is Important

Institutions now additional time to complete their reporting obligations.  

For more information:

Announcement

FINANCIAL RESPONSIBILITY GUIDANCE

What You Need to Know

The Department published an electronic announcement providing recommendations for institutions on which documents to submit for financial responsibility requirements that went into effect on July 1, 2024. These requirements are also known as the discretionary and automatic triggers, and the Department provided a list of recommended documentation for each mandatory and discretionary trigger. The Department indicated that it may require institutions to provide additional information regarding financial responsibility triggers. 

Why This Is Important

As part of the Department’s Final Rule amending regulations related to financial responsibility, institutions are required to report triggers for conditions that exist as of July 1, 2024, regardless of when the circumstance first occurred. Institutions have 21 days (from September 17, 2024) to report such triggers.



For more information:

Department Guidance

BDR LAWSUIT

What You Need to Know

In United States Department of Education v. Career Colleges and Schools of Texas, the Supreme Court granted the Department’s request to extend the timeline from September 10, 2024 to October 10, 2024 for the Department to file a petition for the Supreme Court to review the Fifth Circuit’s previous decision. The Fifth Circuit Court of Appeals entered its decision on April 4, 2024, denying a rehearing on the granting of the preliminary injunction. 

Why This Is Important

The Supreme Court is the last appeal option for the Department to attempt to reverse the preliminary injunction. If the Department decides not to file an appeal, the case will return to the District Court for further proceedings.

For more information:

Supreme Court Docket

NAVIENT SETTLEMENT

What You Need to Know

Navient agreed to a settlement with the Consumer Financial Protection Bureau (“CFPB”) to pay $120 million to resolve allegations that it illegally serviced federal student loans. The settlement provides that Navient will pay $20 million in a penalty and fund $100 million in compensation for the CFPB to distribute to student loan borrowers. This settlement resolves the CFPB lawsuit against Navient, which was originally filed in January 2017. 

Why This Is Important

The settlement may impact students at AACS member institutions, as hundreds of thousands of borrowers will likely qualify for reimbursement. The CFPB has not provided guidance for who will qualify for the consumer redress.

For more information:

CFPB Press Release