Another Negotiated Rulemaking on the Horizon

Beating its own target date of an April notification, the Department of Education announced plans to launch another negotiated rulemaking process that will subject more regulations of great importance to higher education to potential rewrites.  Among the issues of central importance to private, nonprofit institutions are accreditation, institutional eligibility, state authorization, third-party servicers, distance education and TRIO programs.  The regulatory notice also welcomed other topics the public felt should be considered.

The first step in the process, as outlined in law, is public hearings, which the Department plans to hold virtually from April 11-13.  Next will be a series of four negotiation sessions that will start this fall.  Following the conclusion of the sessions, the Department will have to draft and publish proposed rules for comment and give notice on final rules.  This lengthy process makes it likely that any change in regulations from the new rulemaking process would not go into effect before July 1, 2025.

The full list of topics as announced by the Department are: 

• The Secretary’s recognition of accrediting agencies and related issues
• Institutional eligibility, including state authorization
• Third-party servicers and related issues
• The definition of distance education as it pertains to clock hour programs and reporting students who enroll primarily online
• Return of Title IV funds
• Cash management to address disbursement of student funds
• Federal TRIO programs 

The Department is also seeking public input on how it could, through its Title IV regulations, help improve borrowers’ understanding of repayment options and ensure borrowers select an income-driven repayment plan—instead of enrolling in deferment or forbearance—if doing so would be in their best interest.

To learn more or sign up for a speaking slot see the Department’s press release.

For more information, please contact:
Jody Feder