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November 2018 | Lewis-Burke Associates LLC
A VIEW FROM WASHINGTON

Congress may have left D.C. to campaign back home this past month, but the Trump Administration has continued to make waves in federal education policy.  The U.S. Department of Education intends to revise a full slate of higher education related regulations, detailed further below.  A federal court, however, did intervene on attempts by for-profit colleges and the Trump Administration to halt and to delay the Obama Administration’s regulation to allow defrauded borrowers to forgive their student loans, known as borrower defense to repayment.  The court’s ruling means that the U.S. Department of Education will have to allow forgiveness to move forward, although implementation details are still uncertain. A trial over Harvard University’s admissions policies and affirmative action has dominated education headlines.  The case may eventually end up in the recently reconstituted and more conservative U.S. Supreme Court.
 
The 2017 Harry W. Colmery Educational Assistance Act, commonly referred to as the Forever GI Bill, called for a recalculation of housing allowances for student veterans based on the primary campus location attended.  Due to technical problems of implementing this change, which was to go into effect in August, the U.S. Department of Veterans Affairs has fallen behind in providing housing allowances to potentially hundreds of thousands of student veterans.  The House Veterans Affairs Committee intends to review the on-going housing payment delays in November when congressional members return.
 
Stay tuned for special post-election coverage as Lewis-Burke will delve into and share what the new Congress will mean for education policies and funding. 
 

 
IN THIS ISSUE

CONGRESSIONAL UPDATES AND NEWS
Senators Merkley and Murray Float Loan Repayment Bill
Higher Education Policy Legislative Update

ADMINISTRATION AND AGENCY UPDATES AND NEWS
ED Solicits Nominations for Accreditation and Innovation Negotiated Rulemaking Committee
A Full Regulatory Agenda
ED Personnel and Reorganization Efforts Continue

FACTS AND FIGURES
Enrollment in Public Institutions Varies by State

WHAT WE'RE READING
Postsecondary Tuition Capping and Freezing
 
CONGRESSIONAL UPDATES AND NEWS

Senators Merkley and Murray Float Loan Repayment Bill
On October 11, Senator Jeff Merkley (D-OR), Senate Health, Education, Labor, and Pensions (HELP) Committee Ranking Member Patty Murray (D-WA) and other Senate Democrats introduced S. 3584, the Affordable Loans for Any Student Act of 2018.  The bill recognizes the complexity of student loan repayment options and proposes legislation for simpler repayment plans for federal student loan borrowers.  The bill would give borrowers a choice between two plans: a fixed repayment plan with monthly payments over ten years or an income-based repayment (IBR) plan capped at 20 years.  The bill would also provide relief to delinquent borrowers and improve loan disclosures and interactive counseling, among other streamlined efforts.  The legislation has been endorsed by The Institute for College Access & Success (TICAS), Higher Education Loan Coalition, Young Invincibles, Association of Community College Trustees (ACCT), American Association of Community Colleges (AACC), and the National Consumer Law Center.
 
Higher Education Policy Legislative Update
While much of the focus on higher education policy changes in Congress has been on the reauthorization of the Higher Education Act (HEA), many bills relating to college affordability and student success have been introduced recently.  Though these bills are unlikely to pass this year, many of these bills may be reintroduced in the 116th Congress.  Some bills may also be wrapped into a future HEA reauthorization bill.  Several of these bills are summarized below:
  • S. 3467/H.R. 6876, Strengthening Minority-Serving Institutions Act of 2018, introduced by Senator Doug Jones (D-AL) and Rep. Alma Adams (D-NC).  The bill would increase and permanently reauthorize mandatory funding for Historically Black Colleges and Universities (HBCUs) and other Minority-Serving Institutions (MSIs).
  • H.R. 6995, Compete for the Future Act of 2018, introduced by Rep. Derek Kilmer (D-WA).  The bill would establish a prize competitions for programs that prepare high school students to enter high-need industries or occupations.  Eligible programs must feature industry partnerships, apprenticeship opportunities, and skills training.
  • H.R. 6947, College Affordability and Innovation Act of 2018, introduced by Rep. Jim Himes (D-CT). The bill would create a pilot program to issue grants for evidence-based research and experimentation into affordable options for middle- and low-income students to access higher education. The bill would also create a Commission on Higher Education Accountability Standards to create guidelines around ensuring affordability of higher education.
  • S. 3535/H.R. 3784, Common Sense Opportunities Act, introduced by Senator Jon Tester (D-MT) and Rep. Warren Davidson (R-OH).  The bill would provide a seven-day window for Federal TRIO program applicants to correct any technical, non-substantive errors in their application for reconsideration before their application could be rejected on those grounds.  This bill has bipartisan support in the House.
  • S. 3596, Innovation Zone Act, introduced by Senator Todd Young (R-IN).  This bill would authorize the Secretary of Education to establish an innovation zone initiative to allow the Secretary and institutions of higher education to test how statutory and regulatory changes could reduce student debt, increase completion rates, increase student safety, or benefit other student success measurements.  This bill has bipartisan support in the Senate.

ADMINISTRATION AND AGENCY UPDATES AND NEWS
 
ED Solicits Nominations for Accreditation and Innovation Negotiated Rulemaking Committee
On October 15, the Department of Education (ED) announced its intention to establish a negotiated rulemaking committee to prepare proposed regulations for student aid programs under Title IV of the Higher Education Act (HEA).  ED is requesting nominations for individual negotiators to serve on the committee who represent stakeholder constituencies for the issues to be negotiated.  ED also announced the creation of three subcommittees and requested nominations for individuals with relevant expertise to participate on the subcommittees.  Regulatory issues to be considered include accreditation, distance education, competency-based education, TEACH Grants, and more.

ED’s request for negotiator nominations follows its July 31 announcement of its intention to begin rulemaking, its request for written comments on topics for consideration by the negotiated rulemaking committee, and three public hearings where comments were also solicited.  As a result of these comments and feedback, ED has decided to establish a single Accreditation and Innovation negotiated rulemaking committee and three topic-based subcommittees.  Additionally, ED noted that they are scheduling additional days for the committee meetings and will use “redlined regulatory text as the starting point of negotiations instead of issue papers” to streamline the process and ensure proper attention to each topic.  ED intends to select negotiators for the committee who represent the interests significantly affected by the topics proposed for negotiations and reflect the diversity of higher education institutions.  Nominations for negotiators to serve on the committee and subcommittees are due on or before November 15, 2018. 

Sources and Additional Information: A Full Regulatory Agenda
The Administration published its Unified Agenda of Regulatory and Deregulatory Actions (Agenda) on October 17.  The Agenda includes regulatory actions by executive agencies that are likely to occur in the next 12 months and notes, “By amending and eliminating regulations that are ineffective, duplicative, and obsolete, the Administration can promote economic growth and innovation and protect individual liberty.”  Below are pending regulatory actions that are likely to impact higher education.

U.S. Department of Education (ED)
  • Regulations to be addressed in the January 2019 rulemaking:
    • State Authorization and Related Issues: ED is proposing to amend, through negotiated rulemaking, the regulations governing the legal authorization of institutions by States.
    • Accreditation and Related Issues: ED is proposing to amend, through negotiated rulemaking, the regulations relating to the Secretary’s recognition of accrediting agencies and accreditation procedures as a component of institutional eligibility for participation in federal student financial aid.
    • Ensuring Student Access to High Quality and Innovative Postsecondary Educational Programs: ED proposes to create and amend, through negotiated rulemaking, regulations relating to institutional eligibility and operations for participation in federal student financial aid programs.  Regulations relating to the definition of credit hour, competency-based education, direct assessment programs, regular and substantive interaction, and other regulations will be considered.  The Department asserts that these regulatory revisions are, “to promote greater access for students to high-quality, innovative programs of postsecondary education.”
    • Eligibility of Faith-Based Entities and Activities-Title IV Programs: ED is proposing to review and amend, through negotiated rulemaking, regulations related to the eligibility of faith-based entities to participate in the Department’s higher education and student aid program, in order to reduce or eliminate unnecessary burdens and restrictions on religious entities and activities.
    • TEACH Grants: ED is proposing to amend, through negotiated rulemaking, the regulations relating to the Teacher Education Assistance for College and Higher Education (TEACH) Grant in order to simplify and clarify program requirements, minimize inadvertent grant-to-loan conversions, and improve outcomes for TEACH Grant recipients.
  • Updating Regulations Relating to the Graduate Assistance in Areas of National Need (GAANN) Program: ED intends to amend regulations concerning the GAANN program.  The most recent GAANN competition included several new areas of national need including “National Civic Literacy.”
  • Updating Regulations Relating to the Higher Education Act Title III and Title V Programs: ED is proposing to amend the regulations concerning the programs authorized under Titles III and V (these programs primarily provide grants for minority-serving institutions).  According to ED, these changes are intended to, “further enable minority-serving institutions to strengthen student services and other elements of their missions.”
  • Priority for Minority Science and Engineering Improvement Program (MSEIP): ED is proposing to issue a Secretarial priority in MSEIP grant competitions. 
  • Institutional Accountability: These rules relate primarily to the regulations around Borrower Defense to Repayment (BDTR).  A federal judge recently ruled that the BDTR regulations promulgated by the Obama Administration in 2016, which were delayed by the current administration, may go into effect. 
  • Program Integrity; Gainful Employment: These rules relate to the Title IV eligibility regulations governing certain postsecondary educational programs that prepare students for gainful employment in a recognized occupation.  Similar to the timing issues associated with the BDTR regulations, ED has missed a filing deadline, which means the regulations developed under the Obama Administration remain in effect.  New rules may be finalized by the end of the year.
  • Nondiscrimination on the Basis of Sex in Education Programs or Activities Receiving Federal Financial Assistance: ED plans to issue a notice of proposed rulemaking to clarify the Title IX regulations on sex discrimination, including complaints of sexual misconduct and procedures to address misconduct.  The announcement of rulemaking is excepted sometime in November.
Significant regulatory proposals that will impact higher education are also being considered by the Department of Homeland Security, Department of State, and the Department of Labor.  These regulations would include changing the current “duration of status” system (the period a student is pursuing a full course of study and any authorized practical training) for foreign student visas to one with a maximum period of authorized stay.  Also being considered are revisions to the regulations related to the waiver of the "two-year home-country physical presence requirement” for certain exchange visitors.  Additionally, regulations are pending regarding guidelines for third parties to accredit industry-recognized apprenticeship programs and regulations governing overtime pay exemptions.

Sources and Additional information:
ED Personnel and Reorganization Efforts Continue
The U.S. Department of Education has undergone several personnel changes and has proposed to move several offices within the Department.  Douglas Webster, ED’s chief financial officer, is leaving for another position in the Administration.  Kathleen Smith, the deputy chief operating officer in the Office of Federal Student Aid, has been temporarily assigned to the majority staff of the House Education and the Workforce Committee.  U.S. Secretary of Education Betsy DeVos will have a new chief of staff, with Nate Bailey replacing Josh Venable.  Laurie VanderPloeg has also been appointed to be director of the Office of Special Education Programs.  The half-way point of an Administration is often marked by the departure of officials.  Secretary DeVos is not rumored to be departing, though lower level figures may use this point as an opportunity to leave.

It has been reported that ED is also proceeding with several reorganizational efforts that do not require congressional approval.  These include moving the Office of Non-Public Education into the Office of the Secretary.  This is in-line with Secretary DeVos’ emphasis on school choice.  Another change is the creation of a new Student Privacy Policy Office, which would be placed in the Office of Planning Evaluation and Policy Development (OPEPD).  Also being proposed is moving ED’s budget office out of OPEPD into a new Office of Finance and Operations.  The new office would be created by consolidating the budget office, the Office of Management, the Office of the Chief Financial Officer and Risk Management Service.  Evaluating organizational structures of federal agencies has been a priority of the current Administration.  Major changes require congressional approval, which Congress has been leery of approving.  One proposal by the Administration in particular that has not garnered congressional support has been the proposed merging of the Departments of Education and Labor.
 

FACTS AND FIGURES

Enrollment in Public Institutions Varies by State



Sourcehttps://trends.collegeboard.org/college-pricing/figures-tables/ten-year-percentage-increase-total-public-enrollment-state#Also%20Important
WHAT WE'RE READING

Postsecondary Tuition Capping and Freezing
“Fourteen states currently cap or freeze tuition for at least one postsecondary sector. Three additional states — Minnesota, New Jersey and Virginia — considered or are considering tuition caps in the most recent legislative session.” -Education Commission of the States Policy Snapshot

Read more at https://www.ecs.org/wp-content/uploads/Postsecondary-Tuition-Capping-and-Freezing.pdf.
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