Higher Learning Commission

Short-term Pell is being considered again, new guidance is out from the U.S. Department of Education, NACIQI recommends HLC for recognition, and state support for higher education increased this fiscal year.  

Administration 

New subregulatory guidance is out from the U.S. Department of Education (USDE) on third-party servicers, personal liability requirements for individuals with control over institutions, and change in ownership.  

“Dear Colleague” letter  (GEN-23-03) Requirements and Responsibilities for Third-Party Servicers and Institutions (Updated Feb. 28, 2023) was issued “to clarify that entities performing the functions of student recruiting and retention, the provision of software products and services involving Title IV administration activities, and the provision of educational content and instruction are defined as third-party servicers.”  

For the purposes of an institution’s administration of Title IV, several entities may be subject to federal third-party servicers requirements. HLC encourages its members to review the letter and comment on it by the deadline of March 29, 2023. 

Guidance from the USDE on (GENERAL-23-11) Establishing Personal Liability Requirements for Financial Losses Related to the Title IV Programs is an accountability measure from a USDE action last year requiring signatures on Program Participation Agreements from individuals with substantial control over institutions.  

To better protect taxpayers “in the event of school closures, approved borrower defense claims, or outstanding liabilities owed to the Department, the Department is [clarifying] its process for considering when to require certain individuals who exercise substantial control over institutions to assume personal liability for financial losses which may be incurred by the federal government.” 

Guidance from the U.S. Department of Education Federal Student Aid (FSA) (GENERAL-22-70) Updated Guidance and Procedures for Changes in Ownership discontinues FSA’s previous comprehensive pre-acquisition review process and requires that institutions going through certain change in ownership (CIO) transactions first complete the CIO before an acquired institution or location is incorporated into the acquiring institution’s accreditation.  

Companion guidance from the U.S. Department of Education Accreditation Group requires that recognized accreditors also follow a two-step approval process for these types of situations. HLC is reviewing its policies and procedures accordingly. 

HLC had its quinquennial appearance before the U.S. Secretary of Education’s advisory body on the recognition of accreditors, the National Advisory Committee on Institutional Quality and Integrity (NACIQI). The members voted to accept the staff report to continue HLC’s recognition as a recognized quality assurance entity for another five years. The Senior Department Official will make a final determination by May and inform HLC.  

Congress 

The expansion of eligibility to Pell Grants for short-term programs is under consideration in this new Congress. House Republicans introduced H.R. 496, the Promoting Employment and Lifelong Learning (PELL) Act at the end of January. Short-term Pell would allow Pell recipients to use their grants for short-term skills-based job training programs. Short-term Pell was under consideration in the last Congress and appears to be positioned for ongoing discussions in this Congress.  

States 

State support for fiscal year 2023 is up for higher education by almost 7 percent over fiscal year 2022, according to the annual Grapevine survey.