Final Rule – Standards of Administrative Capability

HIGH SCHOOL DIPLOMAS

• 668.16 Standards of Administrative Capability

(p) Develops and follows adequate procedures to evaluate the validity of a student’s high school diploma if the institution or the Secretary has reason to believe that the high school diploma is not valid or was not obtained from an entity that provides secondary school education, consistent with the following requirements:

(1) Adequate procedures to evaluate the validity of a student’s high school diploma must include–

(i) Obtaining documentation from the high school that confirms the validity of the high school diploma, including at

least one of the following—

1. 1. Transcripts;
   2. Written descriptions of course requirements; or
   3. Written and signed statements by principals or executive officers at the high school attesting to the rigor and quality of coursework at the high school;

(ii) If the high school is regulated or overseen by a State agency, Tribal agency, or Bureau of Indian Education, confirming with, or receiving documentation from that agency that the high school is recognized or meets requirements established by that agency;

HIGH SCHOOL DIPLOMAS

• 668.16 Standards of Administrative Capability

(p) Develops and follows adequate procedures to evaluate the validity of a student’s high school diploma if the institution or the Secretary has reason to believe that the high school diploma is not valid or was not obtained from an entity that provides secondary school education, consistent with the following requirements:

(2) A high school diploma is not valid if it—

1. Did not meet the applicable requirements established by the appropriate State agency, Tribal agency, or Bureau of Indian Education in the State where the high school is located;
2. Has been determined to be invalid by the Department, the appropriate State agency in the State where the high school was located, or through a court proceeding; or
3. Was obtained from an entity that requires little or no secondary instruction or coursework to obtain a high school diploma, including through a test that does not meet the requirements for a recognized equivalent of a high school diploma under 34 CFR 600.2.

Fame Comment: This just reinforces what we already had to do. Check with the state to see what the state requirements are, do they recognize the school (the online are the problems), get a transcript from the school and see if the courses taken meet the state requirements, check on the website of the institution, be particularly carefully of subjects taken, how long were they enrolled, transfer credits, etc. Remember, the institution is required to have a high school policy and procedure to validate anything questionable. This regulation does not just apply to our sector.

CAREER SERVICES

• 668.16 Standards of Administrative Capability

The Final Rule makes it clear that all institutions of higher education must provide career service assistance to their students.

(q) Provides adequate career services to eligible students who receive title IV, HEA program assistance. In determining whether an institution provides adequate career services, the Secretary considers–

• The share of students enrolled in programs designed to prepare students for gainful employment in a recognized occupation;
• The number and distribution of career services staff;
• The career services the institution has promised to its students; and
• The presence of institutional partnerships with recruiters and employers who regularly hire graduates of the Institution.

Fame Comment: We do an excellent job of providing career services; this regulation applies to any institution offering GE programs.

EXPERENTIAL LEARNING ACCESS

• 668.16 Standards of Administrative Capability

The Final Rule requires all institutions offering programs with external, experiential learning as part of the curriculum to ensure that the student is placed within such local within 45 days and that the location of the adjunct facility is not a hinderance to the student’s ability to complete the education.

(r) Provides students, within 45 days of successful completion of other required coursework, geographically accessible clinical or externship opportunities related to and required for completion of the credential or licensure in a recognized occupation;

Fame Comment: This section requires that students with an externship or clinical rotation be placed at that external learning site within 45 days of the program’s educational portion.

(s) Disburses funds to students in a timely manner that best meets the students’ needs. The Secretary does not consider the manner of disbursements to be consistent with students’ needs if, among other conditions—

• The Secretary is aware of multiple valid and relevant student complaints;
• The institution has high rates of withdrawals attributable to delays in disbursements;
• The institution has delayed disbursements until after the point at which students have earned 100 percent of their eligibility for title IV, HEA funds, in accordance with the return to title IV, HEA requirements in § 668.22; or
• The institution has delayed disbursements with the effect of ensuring the institution passes the 90/10 ratio.

Fame Comment: The institution must disburse credit balances timely per the students request or within the 14-day requirement if there is no authorization to hold funds. Funds cannot be automatically held until after the required Title IV refund period of 60% of the payment period or period of enrollment.

In addition, Title IV funds must be drawn down and posted to the student account card timely at the end of the fiscal year. For example, the fiscal year ends Dec. 31, disbursements are due Dec. 14, the school is closed for the holiday break Dec. 20-Jan. 1. The federal funds drawdown or posting cannot be delayed until Jan. 2.

INSTITUTIONAL ACCOUNTABILITY

• 668.16 Standards of Administrative Capability

The Final Rule makes several additional institutional accountability additions as well.

(t) Offers gainful employment (GE) programs subject to subpart S of this part and at least half of its total title IV, HEA funds in the most recent award year are not from programs that are “failing” under subpart S of this part.

(u) Does not engage in substantial misrepresentations, as defined in subpart F of this part, or aggressive and deceptive recruitment tactics or conduct, including as defined in subpart R of this part.

(v) Does not otherwise appear to lack the ability to administer the title IV, HEA programs competently. (r) Provides students, within 45 days of successful completion of other required coursework, geographically accessible clinical or externship opportunities related to and required for completion of the credential or licensure in a recognized occupation.

Fame Comment: The rule adds GE accountability, if more than 50% of GE programs are failing, misrepresentation, aggressive and deceptive recruiting, or conduct, general administrative capability, and not meeting the requirement to place students within 45 days to a geographically accessible clinical or externship location under institutional accountability.

PROFESSIONAL LICENSURE NOTIFICATIONS

• 668.43 Institutional and Programmatic Information

The Final Rule requires institutions offering programs leading to specific professional licensure or certification to develop and maintain a list of all of the States where the programs credential is or is not accepted as the basis for pursing employment.

(v) If an educational program is designed to meet educational requirements for a specific professional license or certification that is required for employment in an occupation, or is advertised as meeting such requirements, a list of all States where the institution has determined, including as part of the institution’s obligation under § 668.14(b)(32), that the program does and does not meet such requirements.

Fame Comment: This one is difficult to manage. The institution must list every state that will either accept or not accept the professional license or certificate required for employment in an occupation.

 

About the Authors:

Materials and content originate from the Department of Education posting, with insights and summaries provided by Tom Netting and Sally Samuels.

Sally Samuels, Director of Compliance, Fame

Sally is one of the country’s leading authorities on Federal financial aid administration with more than 43 years of “in the trenches” experience. As a respected Industry leader, she is frequently called upon to speak at School, Accrediting, Regional and State conferences as well as to act as school liaison during program reviews and compliance audits.

 

Having processed, reviewed and taught financial aid for over 40 years Sally brings real life experiences, observations and illustrations to her audience adding a touch of humor to regulatory compliance. Her style makes the sometime complex topics easy to understand and audiences always come away with practical knowledge that they can apply to their everyday situations. Sally has been published many times in various Higher Education periodicals providing her expertise and insight on administering Federal funding based on compliance with the Federal statutes.

 

 

Tom Netting, President/CEO, TEN Government Strategies, Co-Executive Director, CSPEN

Having spent all of his professional career devoted to higher education policy oversight and implementation, Tom Netting has an extensive knowledge of the laws and regulations governing all aspects of higher education. His considerable background and experience have afforded him the opportunity to view the development and implementation of federal higher education and workforce development policy in their entirety – including issues related to higher education and workforce development, health care, veteran affairs policies and the procurement of federal appropriations.