Introduction by Barbara K. Mistick

Dear Colleagues:

Welcome back!  As summer begins to turn to fall, I hope you have had a safe and successful return-to-campus and start to your academic year.  I know that some of our campuses are experiencing a return of the protests that occurred in the spring.  Early reporting is that these protests are both less intense and less widespread.  It is my sincere hope that this remains the case going forward.

Much happened while Washington Update was on hiatus and today’s issue reflects that in its length.  However, we have culled the issues covered, especially in our Soundbites below, to those we believe are most critical to you and your campus.

Congress comes back in session next week for a short session after a long summer recess full of growing uncertainty about the coming fall elections. The expectation is that Congress will recess again by September 27 and not return until after the November elections to address FY 2025 appropriations.

At the top of the list of things we are working on right now is a last big push to get the Department of Education to delay the October 1 reporting deadline under the Financial Value Transparency (FVT) and Gainful Employment (GE) regulations. While the Department has not budged so far, despite the continuing impact of the FAFSA issues on campus, I am again asking for your help in making a final concerted effort.  In that regard, we have reason for continued hope in securing a delay:

•          The broader higher education community now agrees with NAICU’s long-standing position that reports should be delayed until July 1, 2025.  I expect a community letter with this request to come from all sectors in the near future.  Having this broader base of support for delaying the deadline should help in our advocacy.
  
  
• The Department has run into problems with the completer list it sent earlier this summer, which is an essential step in the process for FVT and GE reporting.  You can read more about this below, but the bottom line is that the Department has asked schools to pause the list review. 
  
  
• Institutions continue to grapple with the FAFSA fallout, with many financial aid offices having to hand correct FAFSAs because of the lack of a batch correction process. For more information on how your institution can get support in this process, please view our webinar, Learning About Support for FAFSA Manual Corrections (recording and presentation slides).  

Regarding the fallout from the FAFSA delays, here again is the summary of the membership research NAICU conducted to determine the effects the delays were having on campus, which was shared with Congress and used by NBC in its reporting on the issue.  We will be re-surveying our membership on the issue later this month to see how things have – or have not – changed.

With this in mind, I encourage you to continue to push for a delay until July 1, 2025.  In particular, I hope you can write the Secretary of Education directly (Miguel.Cardona@ed.gov) and copy your congressional delegation on your request. 

Due to our collective earlier efforts, we continue to have Members of Congress urging the Secretary to implement a delay.  These voices are particularly effective and powerful so we need to continue to make our case with both the Department and our representatives.  Your letter should tell the story of the impact this reporting burden is having on your campus.  Members of Congress understand the FAFSA issues but do not always understand how they intertwine with other regulatory impacts, such as FVT reporting.  Citing the problems the Department is having with their completer list is also an effective part of the argument.

Soundbites

• The Department of Education asked schools to pause the use of the Financial Value Transparency (FVT) and Gainful Employment (GE) Completer Lists and Reports due to unspecified issues identified by the education community. The Department will issue more guidance on these issues, including a review of associated reporting deadlines, at an undetermined future date.  It is unclear if this will have any impact on the current deadline of October 1, 2024, for reports to be submitted.
  
  
• In a 5-4 vote, the Supreme Court rejected the Biden Administration’s request to limit the scope of several of the Title IX injunctions currently in effect. Rather than being limited to the sexual orientation and gender identity discrimination provisions that were the target of initial legal challenges, these injunctions have halted implementation of the entire set of regulations for affected states and institutions.  As a result of the Court’s decision, all provisions of the new Title IX regulations will remain blocked for some states and institutions where this type of injunction is in place as the litigation continues.
  
  
• Earlier this month, the Department of Education announced that the release date of the 2025-26 Free Application for Federal Student Aid (FAFSA) would be December 1. However, on October 1, the Department will open up the new form to the first of three stages of beta testing to be conducted with community-based organizations, certain schools, and returning students. While the first stage is limited to only a small number of participants, the number of participants will expand and grow in each stage. Institutions that would like to participate can notify the Department of their interest. 
  
  
• In mid-August, the Department of Education announced a Request for Information (RFI) on ways to improve the completion and submission of the 2025-26 Free Application for Federal Student Aid (FAFSA). This RFI is specifically asking for ways to improve the help text on the form, which provides explanations to what information is being requested of applicants. It also asks for ways to improve tip sheets, counselor guides, and other forms of communication tools for contributors. Interested parties have until September 13 to submit comments.
  
  
• The Department of Education announced that it is publishing the status of Title IV-eligible institutions’ program participation agreements (PPA) and will be updating this list on a regular basis. In addition, it will also publish a list of adverse administrative actions taken against institutions from October 1, 2021 through July 31, 2024.
  
  
• The IRS announced that it will again offer a program allowing organizations to pay back Employee Retention tax Credits (ERCs) they received and avoid penalties for improper filings.  The voluntary disclosure program is open through November 22, 2024, and will dismiss penalties, interest, and waive audits to filers who pay back 85% of the credit.  The IRS also indicated that it will be sending out 30,000 letters this fall clawing back more than $1 billion in improper and fraudulently filed claims.

I know I have given you much to digest.  These next few weeks will be critical on several fronts as we push for reporting delays, track progress on the FAFSA, monitor campus unrest, and follow the daily coverage of the presidential election as well as state-wide and other federal campaigns.

For more information, please contact:
Barbara K. Mistick, D.B.A.