Introduction by Barbara K. Mistick
Dear Colleagues:
Our hearts continue to go out to the people of California as the extent of the tragedies in the Los Angeles area continues to unfold. The impact is so wide that it is hard not to know someone affected by the fires, including many at several of our member campuses.
This has truly been an interesting week as we straddle the final days of the Biden Administration and the beginning of the 119th Congress.
There has been a flurry of activity from the administration, including issuing more student loan debt forgiveness and final regulations on distance education, return to Title IV, and the federal TRIO programs. On the regulations issued, I’m pleased to report that virtually all the provisions that NAICU raised the greatest concerns about appear to have been removed from the final regulations. Our collective efforts helped improve, reverse, or halt these problematic proposals. (See our story below for more details.)
On Capitol Hill, Congress began organizing and holding confirmation hearings for President-elect Trump’s cabinet nominees. On the confirmation front, cabinet hearings started this week for most of Trump’s candidates. A noticeable exception was Education Secretary nominee Linda McMahon, whose hearing had not yet been scheduled because of paperwork delays.
As the new Congress and Trump Administration take shape, this is another opportunity to remind you of the importance of our upcoming Annual Meeting & Advocacy Day, February 2-5. This year’s registration is already our highest since the pandemic, which speaks to the urgency of the moment and the need to engage with our elected officials at the outset of this new Congress.
This week, the Department of Education released subregulatory guidance on misrepresentation for online program management companies (OPMs). While the guidance is substantially toned down from the more controversial guidance proposed for third-party servicers in 2023, the new guidance could have a significant impact on any institution using an OPM. Institutions with such contracts should pay close attention to the Department’s notice. (See story below for more details.)
In other news, the IRS is in the process of distributing about $2.4 billion to taxpayers who failed to claim a Recovery Rebate Credit on their 2021 tax returns. People who missed one of the COVID stimulus payments or had received less than the full amount were able to claim the credit. But the IRS discovered that many eligible taxpayers hadn't done so.
In an attempt to correct this, the IRS erroneously sent payments of up to $1,400 to some ineligible individuals, including international students and workers who filed their taxes using software designed for U.S. tax filers only. The IRS is now asking for funds distributed to nonresident students and workers to be returned.
If you’re hearing from your international students on this issue, please email NAICU’s Olivia Lattanzi at Olivia@naicu.edu regarding how extensive you think the problem might be, along with any information on which tax service providers might have been used so we can gauge the impact of this mistake on our campuses.
Soundbites
- House Education Committee gets Organized. The House Committee on Education & Workforce held its organizing meeting for the 119th Congress under the direction of new committee Chair Rep. Tim Walberg (R-MI). Walberg maintained a hopeful tone, emphasizing that he wants “creative tension” to occur in the committee while also promising that it will work to advance the Trump Administration’s agenda in policy areas, including the high cost of college attendance, educational freedom, school choice, and the woke nature of higher education, especially regarding antisemitism on college campuses.
- Title VI and Title IX Guidance. The Department of Education released two guidance documents on complying with institutional obligations under Title VI and Title IX. The Title VI guidance provides examples of how schools can resolve a hostile environment, while the Title IX guidance clarifies institutional obligations to address online or digital sexual harassment.
- FAFSA Update. While acknowledging the “challenges” experienced with the rollout of the 2024-25 FAFSA, the Biden Administration released its final update on the form, touting the improvements that have been made in the process. The update also included new information on batch corrections, which, according to the Department, will go through a beta testing process in February and be released before the end of the first quarter.
- Foxx to Lead Rules Committee. Former House Committee on Education & Workforce Chair Virginia Foxx (R-NC) has been selected chair of the House Rules Committee. The Rules Committee plays a central role in legislating in the House, being the final stop for bills before they reach the floor. The panel determines the parameters for debate on measures and decides which amendments receive votes on the floor.
I hope you have a pleasant weekend,