navigating the ed program integrity rules: what everyone needs to know (even if you really don’t...

Navigating the ED Program Integrity Rules:

What Everyone Needs to Know(Even if You Really Don’t Want To)

Presentation © Dow Lohnes pllc 2012

Michael B. GoldsteinPractice Leader

The Tip of the Iceburg

October 29, 2010Federal Register

Pages 66832 thru 66975(143 pages)

What Hath ED Wrote?

Why Now?

Why Us?

Obama Community Colleges

The above cartoon by Peter Steiner has been reproduced from page 61 of July 5, 1993 issue of The New Yorker, (Vol.69 (LXIX) no. 20)only for academic discussion, evaluation, research and complies with the copyright law of the United States as defined and stipulated under Title 17 U. S. Code.

On the Internet Nobody Knows You’re a Dog

For-Profit Schools

Key Issues

• State Authorization• Definition of a “Credit Hour.”• Prohibition against “Incentive

Compensation.”• Definition of “Misrepresentation.”• Definition of “Last Day of Attendance”• Definition of “Gainful Employment” and

“Recognized Occupation.”

Hour” Credit HourState Authorization

Return of the Dreaded SPRE

“State Postsecondary Review Entity”

Return of the Dreaded SPRE

• Three key elements• Defining an “acceptable” state

authorization scheme for domestic institutions.

• Eliminating most “automatic” state authorization.

• Requiring institutions to demonstrate that they have all required state approvals wherever they enroll students.

Cross-Border Authorization

Requiring institutions to demonstrate that they have all required authorizations…

In every state where they enroll online (or correspondence) students.

While regulation would not create any new state requirements…

It would enable ED to enforce state rules.


51 Agenciesrepresenting43 States

When I came to America to establish the U.S. version of the Open University I thought I was dealing with one country.

Sir John DanielVice-Chancellor, British Open UniversitySpeaking at the 2003 Annual Meeting of the National Governors Association


When I came to America to establish the U.S. version of the Open University I thought I was dealing with one country.

Sir John DanielVice-Chancellor, British Open UniversitySpeaking at the 2003 Annual Meeting of the National Governors Association

I was mistaken...



District ofColumbia



Requiring institutions to demonstrate that they have all required authorizations

In every state where they enroll online (or correspondence) students.

Would not create any new state requirements.

Would enable ED to in effect enforce state rules.


Will the federal rule return?

Hour” Credit HourThe “New” Credit Hour

The New Credit Hour

The New Credit Hour

The regulations describe a credit hour as: • an amount of work • represented in intended learning outcomes • verified by quantifiable evidence of student

achievement, • as measured against the standard of the

Carnegie Unit.

The “New” Credit Hour

• The “Carnegie Unit” • a unit of faculty workload.

• One credit hour = • one hour of classroom work + • two hours of outside of class study • for a minimum of 15 semester weeks or

10-12 quarter weeks, • or the equivalent amount of work over an

equivalent amount of time.


• The regulations “affirm” that • Credit hour determination is an

institutional responsibility,• The definition is a minimum

expectation, but• Credit hour policies and

procedures must be reviewed by an institution’s accreditor and found consistent with the regulatory standard.


As of last July 1, the front-line definition of a "credit hour," for federal purposes, is NO LONGER a time measure, it is instead the body of student work that represents the achievement of intended learning outcomes. There is still a reference back to the old standard, but the tables are turned in a way that is potentially transformative: traditional institutions will have to show accreditors what their academic expectations are rather than the hours a student is (sort-of) listening to a lecture. This gives innovators something other than seat time with which to calibrate their approaches. It will give us a way to assess new approaches and to counter claims about reduced quality.

Hour” Credit HourIncentive Compensation

Incentive Compensation

• The institution will not provide any commission, bonus, or other incentive payment

• based directly or indirectly on success in securing enrollments or financial aid

• to any persons or entities engaged in any student recruiting or admission activities or in making decisions regarding the award of student financial assistance

• except that this paragraph shall not apply to the recruitment of foreign students residing in foreign countries who are not eligible to receive Federal student assistance.


• Fixed compensation (salary or fixed wages)

• Programs not eligible for Title IV aid

• Arranging contracts between institution and employer, for employer’s employees

• Profit-sharing and bonus plans

• Completion of program or one academic year

• Clerical pre-enrollment activities

• Managerial and supervisory employees

• Token gifts to students and alumni

• Profit distributions based on ownership interests

• Internet-based recruitment activities

• Payments to third parties whose activities do not include recruitment or admissions

• Payment to third parties whose activities do include recruitment or admissions (revenue sharing)

“Safe Harbors” in Effect July 2003-June 2011














“Safe Harbors” in Effect July 2011- present














“Safe Harbors” in Effect July 2011- present

?

Hour” Credit HourMisrepresentation

Misrepresentation

“Misrepresentation” is:• Any false, erroneous or misleading statement • made to a student, prospective student or any

member of the public, or to an accrediting agency, a State agency or ED

• by the institution, one of its representatives • or persons with whom an institution has an

agreement to provide educational programs or marketing, advertising, recruiting or admissions services.

Misrepresentation

Hour” Credit HourLast Day of Attendance (LDA)

Last Day of Attendance (LDA)

What is it?

“LDA” is the date an institution is expected to use to calculate the amount of a Title IV refund when a student withdraws from a program.

The later the LDA, the less the refund.


Evidence of attendance for on-the-ground programs:

“physical presence in the classroom”


Evidence of attendance for online programs:

“academic engagement”

Instructor

Hour” Credit HourGainful Employment

Gainful Employment

The law:

An eligible institution [is one that] offers a postsecondary education program that is:• At least a one-academic-year training program that

leads to a certificate, degree or other recognized educational credential, and

• Prepares students for gainful employment in a recognized occupation.

Gainful Employment

Since 1965, a “recognized occupation” has been “An occupation that is—

(1) Identified by a Standard Occupational Classification (SOC) code established by the Office of Management and Budget * * * ; or

(2) [as] determined by the Secretary [of Education] in consultation with the Secretary of Labor to be a recognized occupation.”

Gainful Employment

New Rules as of July 1, 2011

• Virtually all educational programs offered by for-profit institutions are GE

• All educational programs that lead to a degree awarded by a public or private non-profit institution are not GE Programs.

• Virtually all non-degree educational programs (e.g. LPN) awarded by a public or private non-profit institution are GE Programs.

Gainful Employment

June 13, 2011Federal Register

Pages 34386 thru 34539(153 pages)

Gainful Employment

The regulations at 34 CFR 668.6(b)(1)(iv) provide that institutions that prepare students for gainful employment in a recognized occupation must disclose the placement rate for students completing a GE Program, as determined under a methodology developed by the National Center for Education Statistics (NCES).

In March, NCES convened a technical review panel (TRP). The TRP determined that at this time, a single job placement rate methodology could not be developed without further study because of limitations in data systems and other available data.

Michael B. GoldsteinPractice Leader

1200 New Hampshire Ave NWWashington, DC 20036

[email protected]

Thank you!

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