Dear Colleague:
The purpose of this communication is to clarify the guidance to institutional accrediting agencies and institutions, published as an Electronic Announcement (EA) on January 19, 2021, regarding Department requirements with respect to institutional eligibility for distance education and expectations of nationally recognized institutional accrediting agencies. These requirements are waived until October 7, 2023, which is 180 days after the national emergency related to COVID-19 ended on April 10, 2023, in accordance with previously published requirements (see “Updated waivers and modifications of statutory and regulatory provisions” published in the Federal Register on December 11, 2020 (85 FR 79856)).
As discussed in the above-referenced EA, 34 C.F.R. 668.8(m) provides that a program offered in whole or in part through telecommunications is eligible for Title IV HEA program purposes if the program is offered by an institution that is accredited by an institutional agency that has distance education within the scope of its recognition.
Therefore, subject to the flexibilities provided by the Secretary in response to the national pandemic, before an institution offers any distance education programs that can be eligible for Title IV, the institution must be evaluated and accredited for its effective delivery of distance education programs by a recognized institutional accrediting agency that has distance education within its scope of recognition.
After an institution has been approved to offer distance education by its accrediting agency, an institution may offer distance education programs without further accreditor approval – unless and until an institution, during an award year, offers at least 50 percent of a program through distance education, enrolls at least 50 percent of its students through distance education, or offers at least 50 percent of its courses through distance education (“50 percent threshold”). For purposes of these calculations, a student is “enrolled in distance education” if the student enrolls in at least one course offered through distance education.
Under § 602.22(a)(1)(ii)(C), applicable to nationally recognized institutional accrediting agencies, the Department interprets meeting or exceeding the 50 percent threshold for distance education as a significant departure from the existing offerings or educational programs, or method of delivery, that is a high-impact, high-risk change, which requires approval by the institution’s accrediting agency. This interpretation does not prohibit the agency from creating a substantive change policy that requires review when an institution offers a percentage of distance education lower than 50 percent. Under
§ 602.22(a)(1)(ii)(C), an institution would only have to be reviewed once for meeting the 50 percent threshold, whether the threshold met is 50 percent of a program, 50 percent of students, or 50 percent of courses. Institutions that have previously been reviewed during a comprehensive review for initial accreditation or reaffirmation of accreditation, or that are in the process of renewing their accreditation, and met or will meet the 50 percent threshold during the period for which accreditation will be granted, are not required to be reviewed again under substantive change, so long as the distance education review occurs prior to the agency granting or renewing the institution’s accreditation.
Since the national pandemic has expired, an institutional accrediting agency must have distance education included in its scope of recognition if it accredits an institution that offers any portion of a program via distance education and must have a process in place to review institutions offering any distance education for effective delivery of distance education. The Department also reminds institutional accrediting agencies that their policies must require approval of a substantive change whenever an accredited institution increases distance education to meet or exceed the 50 percent threshold.
In addition, 34 C.F.R. 602.22(b)(1) requires that agencies have a process in place to evaluate and provide approval for a change in an existing program’s method of delivery for institutions that have been placed on probation or equivalent status, have been subject to negative action by the agency over the prior three academic years, or are under a provisional certification, as provided in 34 C.F.R. 668.13. All other institutions must report changes to an existing program’s method of delivery within 30 days to their accrediting agency, and further approval is not needed unless it leads an institution to meet or exceed the 50 percent threshold. Institutions that made a change in method of delivery prior to January 19, 2021, would not need to retroactively inform their accrediting agency. However, agencies should be monitoring the level of distance education offered at an institution to determine when an institution meets the 50 percent threshold.
Accrediting agencies should be aware that 34 C.F.R. 602.27(a)(4) outlines the process for having distance education added to an accrediting agency’s scope of recognition, which requires only written notification to the Department. Distance education will be added to an agency’s scope of recognition upon receipt of the official notification. The Department will review an agency’s application of its distance education policies and procedures during the agency’s next renewal of recognition. If the Department identifies an issue regarding the agency’s application of its distance education standards, the Department may conduct a mid-cycle review under 34 C.F.R. 602.33.
Requirements for Institutions
Institutions that offer any portion of a Title IV-eligible program via distance education must:
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Be evaluated by their recognized institutional accrediting agency, which has distance education within the scope of its recognition, for the effective delivery of distance education;
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Be reviewed by their recognized institutional accrediting agency under its substantive change procedures once it meets or exceeds the distance education 50 percent threshold, whether the threshold met or exceeded is 50 percent of a program, 50 percent of students, or 50 percent of courses. Institutions that have been previously reviewed during a comprehensive review for initial accreditation or reaffirmation of accreditation, or that are in the process of renewing their accreditation, and met or will meet the 50 percent threshold during the period for which accreditation will be granted, are not required to be evaluated again under 34 C.F.R. 602.22 (a)(1)(ii)(C), so long as the distance education review occurs prior to the grant or renewal of accreditation; and
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Follow any additional policies and procedures set by their recognized institutional accrediting agency regarding distance education.
Institutions that have been subject to negative action by their recognized institutional accrediting agency over the prior three academic years, or are under a provisional certification, as provided in 34 C.F.R. 668.13, must be reviewed under 34 C.F.R. 602.22(a)(1)(ii)(C) for any change in method of delivery, without consideration of the 50 percent threshold. All other institutions must notify their agency within 30 days of such a change.
Under 34 C.F.R. 668.8(m), a program is not Title IV-eligible if it is offered through distance education by an institution that is required to be evaluated and accredited for its effective delivery of distance education by a nationally recognized accrediting agency with distance education in the scope of its recognition, but has yet to complete that process. The institution will be responsible for any liabilities established by the Department as a result of Title IV aid disbursed to students in the ineligible program.
Requirements for Institutional Accrediting Agencies
Recognized institutional accrediting agencies that accredit an institution that offers any portion of a Title IV-eligible program via distance education must:
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Have distance education in their scope of recognition;
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Evaluate an institution before it offers any portion of a program via distance education;
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Require approval of a substantive change whenever an accredited institution offers 50 percent of a program through distance education, enrolls at least 50 percent of its students through distance education, or offers at least 50 percent of its courses through distance education. This is sufficient for meeting the requirement that the agency’s definition of “substantive change” include the addition of programs that represent a significant departure from the existing method of delivery under 34 C.F.R. 602.22 (a)(1)(ii)(C);
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Require that institutions that have been placed on probation or equivalent status, have been subject to negative action by the agency over the prior three academic years, or are under a provisional certification as provided in 34 C.F.R. 668.13, receive prior approval for a change in an existing program’s method of delivery, as provided under 34 C.F.R. 602.22(b)(1); and
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Require that all other institutions notify the agency of a change in an existing program’s method of delivery.
Sincerely,
Annmarie Weisman
Deputy Assistant Secretary for Policy, Planning, and Innovation
Office of Postsecondary Education
