Washington Update: Neg Reg March 2024 Review

Changing Higher Ed

Program Integrity and Institutional Quality Committee: A Focus on Distance Education and the Return of Title IV Funds.

In this episode, host Drumm McNaughton is joined by Tom Netting, president of 10 Government Strategies, to discuss the recent Neg Reg 2024 proceedings and their implications for higher education institutions. They explore the key issues addressed during the negotiations, including distance education, accreditation, cash management, and more. The discussion highlights the importance of staying informed and engaged in the regulatory process to ensure the best outcomes for students and institutions alike.

Key Discussion Points

Neg Reg 2024 March Consensus: One Out of Six

• The first quarter of the year focused on federal negotiated rulemaking, specifically the Program Integrity and Institutional Quality Committee.
• Consensus was achieved in one out of six major issues, which was related to trio and expanding access to grant assistance for students and immigrants.

The Issue Where Consensus Was Achieved

• Consensus was reached on the issue of trio, which focused on expanding access to grant assistance for students and immigrants.
• The work of the subcommittee was well-received by the full committee, and the proposed changes to increase opportunities for these student populations were supported by the negotiators.

The Five Issues Where Consensus Was Not Achieved

1. Cash management
2. State authorization
3. Distance education
4. Return to Title IV funds
5. Accreditation and a complete rewrite of all accreditation

Why is Neg Reg Important to Presidents, Boards, and Executive Levels of Higher Ed?

• Neg Reg provides an opportunity for the higher education community to discuss and negotiate regulatory compliance issues that affect the delivery of education and the responsibilities of the Department of Education and the Triad.

Semantics Matter: Pay Close Attention to Neg Reg Revisions

• The specific wording of regulations, such as "must" versus "shall" or "may," can have significant implications for interpretation and enforcement.
• Higher education leaders must carefully review and scrutinize the language used in proposed regulations to ensure they align with the Department of Education's stated intent and do not result in unintended consequences for institutions or students.

Clarity Around Consensus, Non-Consensus, and Notice of Proposed Rulemaking

• If consensus is not reached, the Department of Education can publish a Notice of Proposed Rulemaking (NPRM) based on the negotiations and public comments.

Major Points from Neg Reg March 2024:

Distance Education, Accreditation, NC-SARA, and Cash Management

• Proposed changes to NC-SARA, the national process for online education standards, were met with opposition from both institutions and states.
• The Department of Education appears to be moving more into the area of consumer protection in distance education.

Accreditation: Rewriting Part 602

• The Department of Education proposed a complete rewrite of accreditation standards, which was met with pushback from accreditors and institutions who felt it was overreaching.

Cash Management, Tuition and Fees, Books and Supplies

• Proposed changes to cash management regulations would exclude books, supplies, and equipment from tuition and fees, requiring opt-in processes for each payment period.

Why Higher Ed Leaders Need to Stay Involved in Neg Reg

• It's crucial for higher education leaders to stay informed about regulatory changes and provide input during public comment periods to ensure the best outcomes for their institutions and students.

What's Happening on The Hill

• Key bills under consideration include the bipartisan year-round Pell proposal, the Making America Stronger Act (WIOA reauthorization), and the College Cost Reduction Act (student loan proposals).

The 100 Percent Rule: Certifications and Licensures

• A new bill, the Clock Hour Program Student Protection Act, aims to restore the 150 percent timeline for institutions to provide comprehensive training for state licensure or certification exams.

Title IX Revisions

• Title IX revisions are expected before July 4th, and there may be some surprising changes that could significantly impact higher education institutions.

Key March 2024 Neg Reg Takeaways for Higher Ed Leaders

Higher education leaders should be prepared to advocate for their institutions and students, both on Capitol Hill and in response to Notices of Proposed Rulemaking. The issues discussed during Neg Reg 2024 will have significant implications for financial aid, IT departments, and other aspects of institutional operations.

Final Thoughts

The Neg Reg 2024 proceedings have highlighted the complex and often contentious nature of higher education regulation. As the Department of Education continues to push for increased consumer protection and oversight, it is more important than ever for higher education leaders to stay engaged in the process and advocate for their institutions' and students' needs. By working together and providing thoughtful input during public comment periods, the higher education community can help shape regulations that support student success and institutional sustainability in the face of evolving challenges and opportunities.

Read the transcript on our website →

About Our Podcast Guest

Tom Netting

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.

About the Host

Dr. Drumm McNaughton is a consultant to higher education institutions in governance, accreditation, strategy and change, and mergers. To learn more about his services and other thought leadership pieces, visit his firm’s website: https://changinghighered.com/.

The Change Leader’s Social Media Links

• LinkedIn: https://www.linkedin.com/in/drdrumm/
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