On Thursday, October 27, the Department of Education (DOE) announced new regulations that carry out provisions of the Inflation Reduction Act (H.R. 5376) regarding oversight of-profit colleges, expanding Pell grants to incarcerated students and changes to institutional ownership guidelines. These rules were published in the Federal Register on Friday, October 28. The final regulations address:
The 90/10 Rule. The final regulations address provisions in the Higher Education Opportunity Act (HEA, P. L. 110-135) that allowed for-profit colleges to count federal aid dollars outside of the student aid system, including G.I. Bill benefits, towards the 10 percent of revenue they are required to obtain from non-federal sources. The guidelines also address changes to timing and content of for-profit college financial reporting. This set of regulations will go into effect for institutional fiscal years beginning on January 1, 2023.
Prison Education Programs. New regulations allow incarcerated individuals enrolled in qualifying prison education programs to be eligible for Pell Grants effective July 1, 2023. The DOE has also added more sites to its Second Chance Pell Experimental Sites Initiative, allowing incarcerated individuals in almost every state to gain access to higher education. Finally, the DOE announced that incarcerated individuals are eligible for the Office of Federal Student Aid's (FSA) Fresh Start Program, which is meant to increase the long-term repayment success of borrowers with eligible loans.
Changes in College Ownership. The DOE tightened the process institutions must follow for changes in ownership by updating the definition of "nonprofit" to prevent receipt of improper financial benefits by former college affiliates. It will also require institutions to give 90 days' notice regarding a change in school ownership to both the Department and students. These regulations will take effect July 1, 2023.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
