Section

Final Rule

NPRM

Impact According to the ED

§ 600.2 – Definitions

Defines “academic engagement” to incorporate activities recognized as “academic attendance” and “attendance at an academically-related activity” from § 668.22. Academic engagement in an online course includes student activities with opportunities for interaction, such as an interactive tutorial, webinar, or other interactive computer-assisted instruction, including the use of artificial intelligence or other adaptive learning tools that provide feedback from technology-mediated instruction. Academic engagement does not include simply logging into an online platform.

Adopts language from the NPRM.

Clarifies and expands the types of activities that verify student enrollment for the purpose of performing return to title IV funds calculations while standardizing the Department’s definition of “academic engagement” for use elsewhere in the regulations. Prevents improper payment of title IV funds to students who are not legitimately engaged in postsecondary learning.

§ 600.2 – Definitions

Defines “clock hour in a distance education program” as 50 to 60 minutes in a 60-minute period of attendance in a synchronous or asynchronous class or lecture where there is an opportunity for direct interaction between the instructor and students, as well as an asynchronous learning activity involving academic engagement in which the student interacts with technology that can monitor and document the amount of time that the student participates in the activity. A “clock hour” in distance education must meet accrediting and State agency requirements; a “clock hour” does not meet this definition if it exceeds an agency’s restrictions on the number of clock hours that may be offered through distance education. An institution must be capable of monitoring a student’s attendance in 50 out of 60 minutes for each clock hour under this definition.

The Final Rule differs from the NPRM in that it modifies the clock hour definition to include clock hours in which instruction occurs asynchronously.

Codifies current policy allowing institutions to record clock hours earned through distance education but requires such hours to be taught through synchronous or, as permitted by these final regulations, asynchronous instruction by the instructor. Clock hours may be earned through distance education only when permitted by licensing boards or other regulatory entities that require enrollment to be measured in clock hours. Regulatory clarity may encourage greater use of distance education to provide the didactic portion of occupationally focused programs, thus expanding access to students who are working, raising families, or live far from campus. As described in the preamble and further discussed after this table, potential concerns with allowing asynchronous instruction include a lack of direct interaction and the use of the hours for the completion of homework.

§ 600.2 – Definitions

Defines “correspondence course” using plural instructors instead of a singular instructor to clarify that it is permissible to employ a team approach to instruction and clarifies that the requirements for regular interaction are met if the institution provides opportunities for interaction, even if each student does not take advantage of each opportunity. The definition also removes the sentence suggesting that correspondence courses are typically self-paced since that is not a necessary characteristic of such courses.

Adopts language from the NPRM.

Benefits students by encouraging the development of programs taught by instructional teams consisting of experts in the various elements of high-quality instruction, as opposed to a more traditional model that relies on a single faculty member to meet all of the student’s learning needs. Benefits students and institutions by potentially reducing some of the costs of instruction. Reduces the need for institutions to require students to engage in less substantive work solely for the purpose of documenting that regular and substantive interaction took place in order to document that a course is offered using distance education and is not a correspondence course.

§ 600.2 – Definitions

Modifies “credit hour” so that the appropriate amount of student work defined by the institution is approved by its accrediting agency or State approval agency. Additionally, the definition incorporates the standards outlined in ED’s Dear Colleague Letter GEN–11–06 2 for determining the amount of work associated with a credit hour.

Adopts language from the NPRM.

Maintains time-based standard to ensure consistency among institutions regarding the awarding of academic credit, while also creating the necessary flexibility to consider that many new educational delivery models are not based on seat time. Codifies flexibility provided in sub-regulatory guidance under the Department’s Dear

Colleague Letter GEN-11-06.

§ 600.2 – Definitions

Removes references in the definition of “distance education” to specific kinds of electronic media used in providing instruction, shifts the determination of instructor qualifications to accrediting agencies, and establishes standards for “regular interaction”. Namely, the Final Rule requires institutions to ensure “regular interaction” between an instructor and student by providing opportunities for substantive interactions on a predictable, regular basis over the duration of the course, while monitoring the student’s academic engagement and success to ensure that an instructor is responsible for proactively engaging in substantive interaction with the student when needed. The Final Rule also provides that “substantive interaction” is recognized as at least two of the following: (1) providing direct instruction, (2) assessing or providing feedback on a student’s coursework, (3) providing information or responding to questions about the content of a course, (4) facilitating group discussion on the course content, or (5) other activities approved by an accrediting agency.

Adopts language from the NPRM.

Updates regulations to remove references to outdated forms of electronic media and to ensure that new forms of electronic media will be covered by the regulations in the future. Acknowledges that the use of interactive learning technologies can facilitate regular and substantive interaction between students and instructors. Benefits institutions by more clearly explaining regulatory compliance requirements for educational innovations, thus reducing risk and potential financial penalties for those institutions pursuing educational innovation. Benefits students by expanding learning opportunities and flexibilities, including personalized learning, without unnecessary bureaucratic hurdles for the purpose of meeting title IV requirements for regular participation. Benefits the Federal government by ensuring that students are receiving high-quality education when using Federal student aid to pay for that education. Benefits students by ensuring that online learning includes meaningful interactions with qualified instructors who can monitor and improve student learning.

§ 600.7 – Conditions of Institutional Eligibility

Establishes that a student is considered to be “enrolled in correspondence courses” if correspondence courses constitute more than 50 percent of the student’s enrolled courses during an award year.

Adopts language from the NPRM.

Impact minimal based on the small number of correspondence courses operating in the country. Potential benefit to institutions and students is that enrollment in a single or small number of correspondence courses does not cause a student to be counted against the institution for eligibility purposes. Provides greater flexibilities for students who are managing multiple life demands or for whom travel to the campus is difficult or for whom technology access is limited, by allowing them to participate in a small number of correspondence courses without putting title IV participation for the institution at risk.

§ 600.10 – Date, Extent, Duration, and Consequences of Eligibility

Limits the Secretary's approval of direct assessment programs at the same academic levels to the first such program at an institution.

Adopts language from the NPRM.

Acknowledges that the Department’s role in approving direct assessment programs is limited to ensuring the integrity of the title IV, HEA programs, and assumes that if an institution can disburse aid properly to students in one program at a given academic level, it is likely to be able to do so for additional programs. Ensures that an institution that creates a first new direct assessment program at a new academic level is reviewed by the Department to ensure appropriate administration of title IV funds. Encourages institutions that have demonstrated the ability to design and operate a direct assessment program to expand that model of instruction and enables institutions to respond more quickly to student and workforce needs. Reduces a potential barrier or reduces time required to establish a direct assessment program. A consequence of eliminating the requirement that the Secretary approve each new direct assessment program at the same academic level is that it may lead to the rapid expansion a direct assessment programs without the guardrail of the Department’s review.

§ 600.20 – Notice and application procedures for establishing, reestablishing, maintaining, or expanding institutional eligibility and

certification

Adopts the requirement that ED promptly act on any materially complete applications submitted by participating institutions seeking approval for new programs, as well as adopting the Secretary’s process for approving or denying an additional educational program. The Final Rule adds application and reapplication requirements for institutions who wish to establish or expand eligibility to participate in HEA programs and Title IV, HEA programs. The Final Rule also includes the Secretary’s considerations when reviewing an application to add an additional educational program, as well as how the Secretary will respond to applications. Last, the Final Rule specifies certain requirements that foreign graduate medical schools must include in their application and reapplication for eligibility to participate.  

Adopts language from the NPRM but adds new requirements for an institution’s application for eligibility, reapplication for eligibility, and application to expand eligibility to participate in HEA programs and Title IV, HEA programs.

Benefits institutions and students by allowing faster development of new programs, especially those responsive to workforce development needs.

Reflects role of accreditors in assessing program quality and Department's intent to rely on accreditor's assessment except in rare circumstances related to the Department's statutory and regulatory requirements or specific requirements of the institution's PPA. Protects an institution from Department’s failure to act on an application for new program approval and reduces the likelihood that delays on the Department’s part will require an institution to navigate the State and

accreditor approval process a second time.

§ 600.21 – Updating Application Information

Adds reporting requirements for the addition of a second or subsequent direct assessment program at the same credential level, and for the establishment of a written arrangement for an ineligible institution or organization to provide 25 percent or more of an eligible program pursuant to § 668.5(c).

Adopts language from the NPRM.

With the elimination of the requirement for the Department to approve subsequent programs, this allows the Department to monitor the growth and development of direct assessment programs. Also allows cross-checking with accreditors to be sure program or arrangement has approval.

§ 600.52 and § 600.54 (related to Foreign Institutions)

Amends the definition of “foreign institution” to allow an eligible foreign institution to enter into a written agreement with an eligible institution within the U.S. to provide up to 25 percent of the courses required for a student’s eligible program. Differing from the NPRM, the Final Rule permits students enrolled in eligible foreign institutions to complete up to 25 percent of an eligible program through internship or externship provided by an ineligible organization, in addition to enrollment in coursework, research, work, internship, externship, or special studies offered by an eligible institution in the U.S.

Adopts language from the NPRM but adds that students enrolled in eligible foreign institutions may complete up to 25 percent of an eligible program through internship or externship provided by an ineligible organization.

Benefits students by allowing them to take Federal student loans to enroll at certain foreign institutions but retain the ability to take a limited number of courses in the U.S., such as during summer breaks. Also enables title IV-participating students enrolled at foreign institutions to pursue qualifying internships or externships in the United States at entities other than eligible institutions. Benefits students by allowing them to find internships or externships in a variety of settings in which they may wish to pursue a career. Allows students at eligible foreign institutions to take courses at other approved foreign institutions in that country, thus benefiting from the same opportunities as their international peers enrolled at foreign schools. Broadens educational opportunities available to U.S. students at foreign institutions while maintaining reasonably equivalent quality. However, while the regulations require the ineligible institution to meet the requirements of the foreign country in which it is located, these arrangements would not be overseen by a recognized accrediting agency or the Department, outside of the regulatory requirements, which may make it difficult to ensure academic quality of the coursework offered by the ineligible foreign institution.

§ 668.2 – Definitions

Adopts the NPRM definition of "full-time student" to include students enrolled in subscription-based programs and clarifies requirements for subscription-based programs, as well as prevents an institution from offering repeated courses to a student who has already received a passing grade in their enrollment status.

Adopts language from the NPRM.

Provides clarity for institutions regarding subscription-based models and how they can be structured to permit students to receive title IV, HEA assistance.

§ 668.2 – Definitions

Defines a “subscription-based program” as a standard or non-standard term program for which an institution charges a student for a term with the expectation that the student completes a specified number of credit hours during that term. No specific timeframe applies for the terms, so long as students complete a cumulative number of credit hours before receiving another disbursement of title IV funds.

The Final Rule differs from the NPRM in that the subscription-based disbursement model applies to all programs, not just direct assessment programs.

Revision from NPRM expands use of subscription-based model to all types of programs, not just direct assessment programs. Benefits all parties by clarifying how title IV aid disbursements work for subscription- based programs. Provides flexibility for students to take advantage of self-pacing inherent in this program model while limiting potential for abuse by requiring completion before subsequent disbursements of aid. Some protection for students with possibility of one single subscription period for catch-up work before loss of title IV eligibility. Clarity provided by definition may increase the establishment of direct assessment programs or other programs that could benefit from this approach, to the benefit of the institutions that offer them, and as options for students, including the non-traditional students that have taken advantage of existing CBE programs. Provides an opportunity for students who fall behind in a subscription-based program to catch up and get back on track. A potential risk of expanding subscription-based model beyond direct assessment programs include the possibility that students in subscription-based programs will quickly accrue debt early in their programs while falling behind in their coursework.

§ 668.2 – Definitions

Requires institutions to establish a single enrollment status that applies to a student throughout his or her enrollment in a subscription-based program, with the student option to change their enrollment status once in an academic year.

Adopts language from the NPRM.

Provides consistency for students regarding expectations for completion of coursework in a subscription-based program. Offers clarity to institutions regarding requirements for structuring such programs to ensure access to Federal aid. Improves program integrity by limiting options for students to avoid completion requirements through changes in enrollment status.

§ 668.2 – Definitions

Explains the method for determining the number of credit hours that must be completed before subsequent disbursements of title IV aid.

Adopts language from the NPRM.

Benefits institutions by clarifying how to match disbursements to pace of each student's progress. Benefits the Federal government by establishing a clear completion standard for students to meet before they receive subsequent disbursements of Federal aid. Benefits students by allowing for an additional term to “catch-up” on coursework before losing title IV eligibility.

§ 668.3 – Academic Year

Revises the definition of ‘‘week of instructional time’’ in reference to an institution’s ‘‘academic year’’ by dividing it into two parts: (1) one unchanged definition relevant to traditional postsecondary programs, and (2) one definition relevant to programs using asynchronous coursework through distance education or correspondence courses, which is defined as a week in which the institution ‘‘makes available the instructional material, other resources, and instructor support necessary for academic engagement and completion of course objectives’’.

Adopts language from the NPRM.

Benefits institutions by clarifying requirements for building instructional calendars in programs offered asynchronously through distance education and may spur

additional innovation given better understanding of compliance thresholds. Benefits students and the Federal government by ensuring that institutions make appropriate instructional materials and support available during instructional periods in exchange for Federal student aid. As noted by commenters, the interactions in asynchronous courses may not be predictable.

§ 668.5  – Written Arrangements to Provide Educational Programs

Clarifies that institutions using written arrangements may align or modify their curriculum to meet requirements of industry advisory boards or other industry-recognized credentialing bodies rather than going through a mandatory shared governance decision-making process.

Adopts language from the NPRM.

Enables institutions to keep pace with changing needs of employers and protects non-accredited providers from having their educational programs or technologies manipulated by others. This is important since providers through written arrangements must prove the efficacy of their programs, so outsiders should not be allowed to modify or change the program in a way that could influence those results. Ensures that students are better prepared for entry to the workforce in certain occupations. Could create tension with faculty and reduce their influence over certain aspects of the curriculum but could require proper oversight by partnering institutions and accreditors to reduce risk of harm to students.

§ 668.5 – Written Arrangements to Provide Educational Programs

Clarifies calculation for determining the percentage of a program that could be provided by an ineligible institution.

Adopts language from the NPRM.

Ensures that degree-granting institutions retain academic control of a program and maintain the responsibility for delivering at least half of an academic program. Setting out a clear methodology makes clear when and how written arrangements may be used but ensures that colleges and universities are not simply outsourcing instructional responsibilities to non-accredited providers. Benefits institutions by improving speed with which accrediting agencies review and approve such arrangements. While the accrediting agency can deny the request for a written arrangement, increasing the speed for review and expanding the options for staff that can review these arrangements could make for a less robust or rigorous review. Benefits students and institutions by allowing institutions to engage other providers, such as unions and apprenticeship providers, who may have specialized facilities and uniquely trained employees who can serve as teachers and mentors. Benefits institutions by allowing them to offer educational opportunities or technologies that are developed by outside providers who may be better situated to invest in new technologies due to their opportunities to deliver them to a larger population of students than are typically at a single institution.

§ 668.5 – Written Arrangements to Provide Educational Programs

Clarifies that written arrangements are not necessary for certain other interactions with outside entities. Specifically, the limitations in § 668.5 do not apply to the transfer of credits, use of prior learning assessment or other non-traditional methods of providing academic credit, or the internship or externship portion of a program.

Adopts language from the NPRM.

Offers clarity for institutions to ensure that use of written arrangements does not result in fewer credits being accepted through transfer or awarded through prior learning assessment. Benefits students by reducing costs and time to completion for those who bring pre- existing knowledge and skills to the classroom.

§ 668.5 – Written Arrangements to Provide Educational Programs

Removes the 50 percent limitation on written arrangements between two or more eligible institutions under joint ownership.

Adopts language from the NPRM.

Allows greater opportunities for institutions to share administrative or instructional resources when under shared ownership.

§ 668.5 – Written Arrangements to Provide Educational Programs

Provides that ineligible entities would not have to demonstrate experience in delivery and assessment of the program or portion the ineligible entity delivers and that the programs have been successful in meeting stated learning objectives.

The Final Rule differs from the NPRM in that the Final Rule eliminates the prior experience requirement for ineligible entities involved in a written agreement. The NPRM previously provided that ineligible entities must demonstrate experience in the delivery and assessment of the program or portion of the program they will be contracted to deliver, as well as effectiveness of the program in meeting the stated learning objectives.

Allows institutions to use third parties to deliver portions of programs, to integrate advanced technologies, enable student access to specialized facilities and experts, expand the number of learning options available to students and potentially increase the number of students an institution can responsibly serve. While written arrangements may reduce the cost of delivering certain kinds of instruction, constructing specialized facilities, or developing new technologies, the written arrangement will have associated costs that could reduce revenue. Students could have access to newer technologies or higher quality instruction than could be provided by the institution. In the final regulations, ineligible entities will not be required to demonstrate prior experience and success in meeting learning objectives for portions of programs they deliver. However, there are potential risks inherent in contracting with an ineligible entity that lacks demonstrable experience. The outside provider could be of lower quality, have less of a vested interest in the student’s success, or lack the necessary resources to provide the educational services agreed upon in the written arrangement.

§ 668.8 – Eligible Programs

Reduces the minimum number of clock hours that must be included in a semester or trimester credit hour from 37.5 to 30 clock hours of instruction (25 to 20 hours for quarter credit hours).

Adopts language from the NPRM.

The Department believes the current formula has proved confusing for institutions while yielding little in way of increased program integrity. The change establishes equitable, measurable, and clear conversion standards keyed only to instructional hours, eliminating the ambiguity associated with the consideration of outside work.

§ 668.8 – Eligible Programs

Eliminates consideration of “out-of-class” hours for purposes of performing clock-to- credit conversions for non-degree programs that are subject to those requirements.

Adopts language from the NPRM.

Aligns the Department’s requirements with those of most licensing boards and simplifies the conversion process. Enables students to meet licensure requirements in programs that are title IV eligible and helps institutions by allowing them to comply with the reasonable length requirements while also allowing credit hour to clock hour conversions. May result in additional title IV funds expenditures for programs currently lacking any out-of-class components.

§ 668.10 – Direct Assessment Programs

Revises definition of “direct assessment.” Notable changes to the definition include:

-        Recognizing eligible direct assessment programs based on the institution’s accrediting agency’s evaluation (based on its standards and criteria), inclusion in the accreditation or pre-accreditation approval, and review and approval of the direct assessment program’s equivalence in terms of credit or clock hours;

-        Requiring an institution to establish a methodology to reasonably equate each module in the direct assessment program to credit or clock hours. The methodology must be consistent with the institution’s accrediting agency or State approval agency requirements; and

-        Permitting institutions to forgo submission to the Secretary for approval of additional direct assessment programs where the institution has already submitted a direct assessment program at an equivalent or lower academic level. Previously prohibited coursework for direct assessment may be eligible if the Secretary has already approved one or more direct assessment programs at the institution and the institution’s offering is consistent with their accreditation and State authorization, if applicable.

Adopts language from the NPRM.

Allows institutions to provide students with more options so that learners can select the learning modality that best meets their needs. Allows students to take some traditional courses even if some of their other courses are direct assessment courses. Recognizes that co-remediation is a promising practice, and direct assessment classes may increase the number of students who can participate in co- remediation programs while taking other classes.

§ 668.10 – Direct Assessment Programs

Adding a prohibition on paying title IV, HEA funds for credit earned solely through prior learning assessment.

Adopts language from the NPRM.

Benefits students and taxpayers by discouraging institutions from charging excessive fees for conducting prior learning assessment and ensures that taxpayer dollars are not being used to pay institutions for instruction that they are not providing.

§ 668.13 – Certification Procedures

Provides automatic renewal of an institution's certification if the Secretary does not make a decision on an application for recertification submitted no later than 90 calendar days before its PPA expires within 12 months.

Adopts language from the NPRM.

Benefits institutions by setting a time limit for the uncertainty of month-to-month eligibility. With the option of provisional recertification, the Department retains sufficient control over recertification process but cannot use certification delays to prevent institutions from starting new programs or making other necessary changes.

§ 668.14 – Program Participation Agreement

Clarifies requirements related to making data available to prospective students about the most recent employment statistics, graduation statistics, or other information to substantiate the truthfulness of its advertising that uses job placement rates to attract students.

Adopts language from the NPRM.

Benefits institutions by reducing the amount of information that must be disclosed to students to enable institutions to include graduation rates or employment statistics in their marketing materials. Benefits students by improving the accuracy and truthfulness of published outcomes data, and by making an appropriate amount of information available to students without overwhelming them with extraneous data. Maintains the requirement for institutions to make available any information needed to substantiate the truthfulness of the institution’s advertisements about job placement or graduation rates.

§ 668.14 – Program Participation Agreement

Removes requirements to provide the source of such statistics, associated timeframes, and methodology.

Adopts language from the NPRM.

Considered redundant to requirement to provide data and other information to substantiate truth in the institution's advertising.

§ 668.14 – Program Participation Agreement

Aligns program length to occupational requirements. Limits program length to 150 percent of minimum program length for the State in which the institution is located or 100 percent of the minimum program hours for licensure in an adjoining State.

Adopts language from the NPRM.

Allows institutions to create programs that meet professional licensure requirements in multiple States, thus expanding the potential pool of students served and the number of job opportunities available to graduates. Students benefit by increased occupational mobility and, in some cases, being able to go to school in a lower cost State but work upon graduation in a different State where wages are higher. Conversely, if an institution increases program length, a student may have to pay more to meet requirements of a State in which the student does not plan to work.

§ 668.14 – Program Participation Agreement

Requires updates to teach-out plans after specified negative events (e.g. the Secretary initiates the limitation, suspension, or termination of the institution’s participation in Title IV, HEA programs; the institution’s accrediting agency withdraws, terminates, or suspends the accreditation or pre-accreditation; the institution’s State licensing or authorizing agency revokes the institution’s license; or the institution otherwise intends to cease operations.).

Adopts language from the NPRM.

Allows accrediting agencies to gather more information from institutions that will be helpful to triad partners in assisting students find transfer and teach-out opportunities, and retain access to their academic records, when a school closure occurs. Requires institutions to update teach- out plans in instances where risk of closure increases.

§ 668.22 – Treatment of title IV Funds When a Student Withdraws

Adds exceptions to the requirements for determining whether a student has withdrawn: (1) early completion of requirements for graduation, (2) completion of modules containing 49 percent or more of the days in the payment period, and (3) completion of coursework equal to or greater than the institution’s requirements for a half-time student for the payment period.

Adopts language from the NPRM.

Benefits institutions by not requiring them to return title IV funds simply because a student is a faster learner. Benefits students by allowing them to complete courses at a quicker pace and still retain full title IV eligibility. Could improve completion rates and reduce time to completion if students are not required to participate in busy work if they finish the legitimate work required by the course more quickly than other students.

§ 668.22 – Treatment of title IV Funds When a Student Withdraws

Applies a 45-day time limit on delaying withdrawal for students who cease attendance to standard term programs. For non-term and subscription-based programs, the student can change their date of return if the student’s program permits the student to resume attendance no later than 60 calendar days after they ceased attendance. The Final Rule also eliminates references to modules for nonterm programs and revises timeframes for allowing students to provide written confirmation of intent to return without beginning an approved leave of absence.

Adopts language from the NPRM.

Improves consistency of regulations as they apply to programs with different types of academic calendars and addresses concerns about long periods of non-attendance by students. Ensures that institutions perform return of title IV calculations when students cease attendance for long periods of time without beginning an approved leave of absence.

§ 668.22 – Treatment of title IV Funds When a Student Withdraws

Clarifies requirements for determining the number of days in the payment period or period of enrollment for a student who is enrolled in a program offered using modules. Requires an institution to include all the days in modules that included coursework used to determine the student’s eligibility for title IV, HEA assistance.

Adopts language from the NPRM, but adds that a program is “offered in modules” if the program uses a standard term or nonstandard-term academic calendar, is not a subscription-based program, and a course or courses in the program do not span the entire length of the payment period of period of enrollment.

Simplifies and clarifies requirements for establishing the denominator of the return of title IV funds calculation when a student is enrolled in a program that uses modules. May result in a greater amount of title IV funds being returned for a limited number of students who enroll in numerous modules during a payment period or period of enrollment but fail to attend those modules.

§ 668.28 – Non-title IV Revenue (90/10)

Removes references to net present value when including institutional loans in the 90/10 calculation.

Adopts language from the NPRM.

No impact anticipated for technical changes.

§ 668.34 – Satisfactory Academic Progress

Changes pace requirements for satisfactory academic progress for subscription-based programs to be measured in demonstrated competencies rather than the passage of time.

Adopts language from the NPRM.

Reduces burden on institutions for making pace-based title IV calculations for students in subscription-based programs. Improves flexibility for students by allowing them to determine the pace of their learning without certain limits.

§ 668.34 – Satisfactory Academic Progress

Allows a maximum timeframe for undergraduate programs measured in credit hours to be expressed in calendar time in addition to current credit hour measurement, limited to 150 percent of published length of program.

Adopts language from the NPRM.

Increases flexibility for institutions and students and provides new options for monitoring student progress when traditional semester-based time constraints conflict with a student’s work or life responsibilities. However, sets outer limit for use of aid to ensure that students are progressing through their program and using Federal student aid funds efficiently.

§ 668.111 – Scope and Purpose and §668.113 - Request for Review

Indicates that, for final audit or program review determinations related to classification of a program as distance education or the assignment of credit hours, the Secretary will rely on the institution's accrediting agency or State agency requirements.

Adopts language from the NPRM.

Conforms with changes to definitions of “distance education” and “credit hour” and provides regulatory clarity that accreditors are the triad member given the responsibility of monitoring program quality and establishing standards for academic quality, faculty credentials, and effective distance learning.

§ 668.164 – Disbursing Funds

Establishes disbursement requirements specific to subscription-based programs. The Final Rule excludes subscription-based programs from current provisions on early disbursement and establishes disbursement requirements specific to subscription-based programs to clarify the earliest an institution may disburse funds to students in such a program (e.g. the later of 10 days before the first day of classes or the date that the student completed the cumulative number of credit hours associated with their enrollment status in all prior terms attended).

Adopts language from the NPRM.

Conforming change with disbursement pattern for subscription-based programs in §668.2 to enforce requirement that no disbursements be made until the student has completed the appropriate credit hours.

§ 668.171 – General

Allows the Secretary to deny an institution’s application for certification or recertification to participate in Title IV, HEA programs if the institution is not “financially responsible” or does not timely submit its financial and compliance audits as required under § 668.23.

Adopts language from the NPRM.

Codifies current practice; no impact expected.

§ 668.174 – Past Performance

Provides that an institution is not “financially responsible” if a person who exercises substantial ownership or control over the institution also exercised substantial ownership or control over another institution that closed without a viable teach-out plan or agreement approved by the institution’s accrediting agency and faithfully executed by the institution.

Adopts language from the NPRM.

Allows the Department to consider whether a person or entity affiliated with an institution has overseen the precipitous closure of another institution with the goal of preventing an institution from being substantially owned or controlled by persons or entities that would cause the institution to be financially irresponsible and close without providing to students a plan to finish their education in place or at another institution.

 

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