1
Katherine Brodie, Vice President for Government
and Legal Affairs
Association of Private Sector Colleges &
Universities
2
Federal Trends Affecting Career Education
ABHES 9th National Conference on
Allied Health Education
February 22-24, 2012
Katherine Brodie, Vice President for Government and Legal Affairs
Katherine.Brodie@apscu.org
3
OVERVIEW
The current focus of policymakers on reducing unemployment
and creating jobs showcases positively the long-recognized
strengths of career education, including –
• Alignment of curriculum to high-demand occupations
• Access to the postsecondary education needed to compete
for jobs
At the same time, national and state fiscal pressures –
combined with a coordinated campaign by some against the forprofit college sector – require all stakeholders in career education
to demonstrate as persuasively as possible the value
proposition to students and taxpayers.
4
Washington is talking about …
• The 90/10 Rule
• Two Senate bills and two House bills (so far) propose to make a bad
90/10 rule worse through ratio changes and including military
benefits in the “90,”
• None are likely to become law this year but are place markers for
Higher Education Act reauthorization proposals.
• APSCU is opposed to any legislation that would negatively alter the
90/10 ratio (i.e., 85/15) or change the formula calculation (i.e.,
counting military or veteran education benefits in the 90 percent).
• APSCU is working to reach agreement among APSCU members and
external stakeholders, and promote externally, the need for an
outcomes-based quality measurement across all of higher education
as an alternative to 90/10 Rule.
5
Washington is talking about …
• Veterans/Servicemember Education
• APSCU is working with Veterans Service Organizations regarding
legislative and non-legislative alternatives that promote disclosure
and transparency to veteran students in a manner that does not
change the 90/10 ratio.
• Veterans protection is an election issue for many Members of
Congress.
• Veterans issues are a potential “wedge” with Republicans.
• APSCU is working to build a database of positive veteran student
stories and to identify veteran student advocates who tell their story
the best.
6
Washington is talking about …
• The Future of Pell Funding
• Strong support among Democrats to maintain maximum Pell.
• FY 2012



Maximum was retained, but with eligibility changes
ATB students are ineligible for grants and loans as of 7/1/2012
Creation of APSCU ATB Task Force
• FY 2013


President has proposed increasing and protecting maximum Pell
Republicans continue to have concerns about size and growth of
Pell program
 What will their Pell proposal look like for FY 13?
7
Washington is talking about …
• Gainful Employment Rule
• How will the court rule? June 30 deadline
• What will the true impact be?
• Will the rule resurface in HEA discussions? If so, how?
• Is traditional higher education concerned?
8
Washington is talking about …..
• Single Definition under Higher Education Act
• Equal definitional treatment under HEA
• Basis of opposition to single definition in the past
• How we make the case: data collection and advocacy
9
Fiscal Year 2013 Budget Request
 The President’s budget request proposes:
•
•
•
•
•
An $85 increase to Pell Grants, making the maximum Pell Grant $5,635 for
Academic Year 2014-15;
Maintaining subsidized interest rates at 3.4 % for an additional year;
Making the American Opportunity Tax Credit permanent, a partially refundable
tax credit worth up to $2500 per year;
Limiting in-school interest subsidy to Subsidized Stafford loan borrowers to 150
percent of the normal time required to complete borrowers’ educational programs
whereby borrowers beyond that time frame would begin to accrue interest at the
non-subsidized rate;
Increasing the amount of aid for campus based aid (Perkins Loans), Supplemental
Educational Opportunity Grants (SEOG), and Federal Work Study (FWS) to $10
Billion annually, which includes an improved formula aimed at funding those
institutions which set “responsible” tuition, provide “good value” in education, and
ensure higher numbers of lower income students complete their education;”
10
•
Creates a $1 Billion “Race to the Top” program for postsecondary education, which
incentives states to revamp state financing of higher education, align entry and exit
standards for K-12 to facilitate on-time completion, and maintain adequate levels of
funding for higher education to address long-term causes of cost growth;
•
Creates a $55 Million program called “First in World competition” available to non-profit
organizations to “develop, validate, or scale up innovative and effective strategies for
boosting productivity and enhancing quality on campuses”;
•
Creates transparency through the creation of the “College Scorecard” for all degree
granting institutions making it easier for students and families to choose a college which
best fits their needs; and
•
Proposes $2.6 Billion for Workforce Investment Act.
11
Other Concerns ….
• White House
Non-legislative options
Department of Education
 Credit Hour/Clock Hour interpretation
Consumer Financial Protection Bureau
 Private lending
Department of Justice Fraud Task Force
 For-profit college focus
Federal Trade Commission
 Marketing & Advertising (lead generation)
State Attorneys General

•
•
•
•
•
12
APSCU Goals & Themes 2012
• Access: Career colleges are essential to providing necessary
postsecondary access to meet national workforce education
goals.
• Value: Career colleges are a cost-effective option to the taxpayer
and meet the needs of students.
• Equal Treatment: All institutions of higher education should be
subject to similar rules.
• Data-Driven Policy: Better data collection and reporting needed
to strengthen advocacy.
13
Contact Info
 Contact Information:
 Katherine Brodie
 Vice President of Government and Legal Affairs
 Association of Private Sector Colleges and Universities
 Katherine.Brodie@apscu.org
 (202) 336-6810 (direct line)
14
Sharon H. Bob, Ph.D.
Higher Education Specialist
Powers Pyles Sutter & Verville, PC
15
Presented by: Sharon H. Bob, Ph.D.
Powers Pyles Sutter & Verville, PC
February 23, 2012
Las Vegas, Nevada
Powers Pyles Sutter & Verville, PC 1501 M Street, NW, Seventh Floor Washington, DC 20005
Telephone: (202) 466-6550 Fax: (202) 785-1756 www.ppsv.com
16
Omnibus FY 2012 Appropriations Bill (P.L.
112-74) Signed into Law – 12/16/2011 – See
DCL GEN-12-01 & GEN-12-03
 Annual Pell Grant maximum remains at $5,550 for 2012-2013




(P-12-01) ;
No Pell Grant if amount determined to be less than 10% of
maximum award;
Maximum period for Pell Grants reduced from 18 to 12
semesters for all students beginning 2012-2013 not just firsttime Pell Grant recipients (no one grandfathered in);
AGI to qualify for automatic zero: EFC reduced from $30,000
to $23,000 for 2012-2013;
Grace period interest subsidy on new Subsidized Loans made
between 7/1/2012 and 6/30/2014 eliminated; and
17
Omnibus FY 2012 Appropriations Bill
(P.L. 112-74) Signed into Law – 12/16/2011 –
See DCL GEN-12-01 & GEN-12-03, cont.
 Title IV eligibility for ATB students eliminated for students
who first enroll in a program on or after 7/1/2012. (Neither
ATB testing nor earning 6 credits applicable to a degree or
certificate will count.) The law makes an exception for those
who completed secondary school in a home school setting
that is treated as a home school under State law.
18
President Announces Two New Student
Loan Programs to Help Students Manage
Debt
 On 10/26/2011, President Obama announced two loan
initiatives:
 “Pay as You Earn” Repayment Plan – provides for an
acceleration of the Income-Based Repayment Plan enacted
under SAFRA that would have taken affect on or after
7/1/2014 but will go into effect in 2012, which provides for a:
 Lower income-based payment (10% of discretionary
income rather than 15%); and
 Shorter time until full forgiveness takes place (20 years
rather than 25 years).
19
President Announces Two New Student
Loan Programs to Help Students Manage
Debt, cont.
 “Special Direct Consolidation Loan Program” – Beginning 1/2012
and for 6 months, borrowers would receive 0.25% interest rate
reduction on their consolidated FFEL loans and additional 0.25%
interest rate reduction on entire consolidated FFEL and DL.
 An electronic announcement is at:
http://ifap.ed.gov/eannouncements/
102611SpecialDCLInfoInitial.html.
20
ED Works with Consumer Financial
Protection Bureau (CFPB)
 ED and CFPB are launching a new “Know Before You Owe”
Project aimed at creating a model financial aid disclosure
form, the Financial Aid Shopping Sheet that schools will use
to help students understand the types and amounts of aid
they qualify for and can compare packages across
institutions.
 The form is available at:
http://www.consumerfinance.gov/students/
knowbeforeyouowe/
21
ED Works with Consumer Financial
Protection Bureau (CFPB), cont.
 On 11/17/2011, CFPB and ED published a joint notice in the
Federal Register requesting information on Private Education
Loans and Private Education Lenders to prepare a future report
to Congress on private education loans and lenders. Comments
due: 1/17/2012.
 A more informal request is available at:
www.consumerfinance.gov.
 On 1/12/2012, CFPB Director, Richard Cordray, compared the
practices of some parts of the student loan business to the
subprime mortgage lending practices.
22
DOD Requires Institutions
Participating in Military Tuition
Assistance to Have a MOU with DOD
 A signed MOU was to be sent to DOD to be on the “List of
Participating Institutions” by 1/1/2012, but delayed until
3/31/2012.
 Delay made at request of 52 Senators and members of the
higher education community because MOU provisions
inconsistent with “well-established academic policies:”
 Academic credit;
 In-school residency;
 Tuition policies; and
 Payment processing.
 See www.dodmou.com
23
Program Integrity
Regulations
October 1, 2010
24
Credit Hour
§§600.2, 602.24, 603.24, and 668.8
(DCL GEN-11-06)
25
Why Establish a Credit Hour Definition?
 There was no definition;
 Establishes consistent measure of eligibility for Federal funding;
and
 Final Rules: Provides that a credit hour is an institutionally
established equivalency of amount of work that reasonably
approximates not less than the measures in the definition for
federal funding purposes.
26
Definition of Credit Hour
 Credit hour is defined as an amount of work represented in
intended learning outcomes and verified by evidence of
student achievement that is an institutionally established
equivalency that reasonably approximates:
 One hour of classroom or direct faculty instruction and a
minimum of two hours of out of class student work each
week for approximately 15 weeks for one semester or
trimester of credit, or 10 to 12 weeks for one quarter
credit, or equivalent amount of work over a different
amount of time; or
27
Definition of Credit Hour, cont.
 Credit hour is defined as follows (cont.):
 At least an equivalent amount of work as required in the
first paragraph for other academic activities including
laboratory work, internships, practica, studio work, and
other academic work leading to the award of credit
hours.
28
Clock-Hour Program
 The regulations require certain credit-hour programs to be
considered clock-hour programs for Title IV purposes if:
 The program is required to measure student progress in
clock hours when receiving federal or state approval or
licensure to offer the program; or
 The program is required to measure student progress in
clock hours when completing clock hours is a requirement
for graduates to apply for licensure or the authorization to
practice the occupation that the student is intending to
pursue; or
 The credit hours awarded are not in compliance with the
proposed definition found in 34 CFR 600.2.
29
Clock-to-Credit-Hour Conversion
 Required for non-degree programs at any type of
institution if each course in non-degree program does not
transfer into at least a 2-year degree program; have enrolled
students; and graduates.
 Except in certain cases discussed below, the method of
converting clock hours to credit hours is modified using
900 clock hours as the minimum. Therefore, a semester
hour will be based on 37.5 clock hours and a quarter hour
will be based on 25 clock hours.
30
Clock-to-Credit-Hour Conversion, cont.
 The institution’s conversions to establish a minimum number of
clock hours of instruction per credit hour may be less than 37.5
or 25 clock hours if, for participation in Title IV programs,
neither the accrediting agency nor the state agency has identified
deficiencies with the institution’s policies and procedures or its
implementation for determining credit hours as defined in 34
CFR 600.2 so long as:
 The institution’s students’ work outside of class combined
with the clock hours of instruction meet or exceed the
numeric requirements in the conversion formula; and:
31
Clock-to-Credit-Hour Conversion, cont.


A semester or a trimester hour must include at least 30
clock hours of instruction; and
A quarter hour must include at least 20 clock hours of
instruction.
32
Responsibilities of an Accrediting Agency
 The responsibilities of an accrediting agency are to conduct
an effective review and evaluation of an institution’s
policies and procedures for the assignment of credit hours
and the institution’s application of its policies and
procedures in assigning credits. The accrediting agency
meets the requirement if it reviews each institution’s:
 Policies and procedures for determining credit hours
that the institution awards for courses and programs;
 Application of the institution’s policies and procedures
to its courses and programs;
33
Responsibilities of an Accrediting Agency, cont.
 Makes a reasonable determination of whether the




institution’s assignment of credit hours conforms to
commonly accepted practice in higher education;
The accrediting agency may make use of sampling or other
methods in the evaluation;
The accrediting agency must take appropriate actions to
address any deficiencies;
If an agency finds systemic noncompliance, the agency
must promptly notify ED; and
Accreditation reviews occur for initial or renewal of
accreditation; however, during the interim, an institution is
held responsible and accountable for meeting definition.
34
ED Guidance on Clock-Credit Hour
Conversion
 Per page 66856 of the Preamble of the 10/29/2010 final
regulations, institution must require students to complete
clock hours that are the basis for the credit hours awarded
when an institution converts to credit hours. Programs must
contain clock hours that support the conversion.
Institutions may permit excused absences.
 ED recommends that institutions not provide grades until
underlying clock hours are complete.
35
ED Guidance on Clock-Credit Hour
Conversion, cont.
 New courses may be started but clock hours under new
courses may not count toward completion of the previous
courses.
 If a state agency provides a clock-to-credit-hour conversion
formula in their statutes and regulations that did not address
outside preparation, then the programs regulated by the agency
must be offered in clock hours.
 ED is examining various state laws and plans to call the state
agencies to determine whether outside preparation is used to
determine what constitutes a credit hour.
36
ED Guidance on Clock-Credit Hour
Conversion, cont.
 ED plans to issue DCL to address these various clock and
credit hour issues.
37
38
State Authorization Requirement
 In order for an institution to be eligible to participate in the Title
IV, HEA programs, it must be legally authorized to provide
postsecondary education by the State in which it is located.
 ED sought to clarify what is required for an institution to be
considered legally authorized by a State for purposes of Federal
programs.
39
Clarification of State Authorization
Requirements
 Requirements are clarified based on whether the institution is:
 Established by name as an educational institution;
 Authorized to conduct business; or
 Authorized to operate as a nonprofit charitable
organization.
 Federal, tribal, and religious institutions are exempt from these
requirements.
 Requirements imposed on institutions providing distance
education to students in a state in which it is not physically
located.(7/12/11 District Court ruling struck down requirement
that colleges offering online programs in other states needed
approval from those states.)
40
Institution is Established by Name as an
Educational Institution
 If established as an educational institution by a State, it:
 Must be established by name as an educational institution by
a State through a charter, statute, constitutional provision, or
other action issued by the State agency and is authorized to
operate educational programs beyond secondary education,
including programs leading to a degree or certificate;
 Must comply with any applicable State approval or licensure
requirements; and
41
Institution is Established by Name as an
Educational Institution, cont.
 State may exempt the institution from State approval or
licensure requirements based on:
 The institution’s accreditation if agency recognized by the
Secretary; or
 The institution being in operation for at least 20 years.
 School must provide some type of authorization as a
postsecondary institution by the State; and a letter issued by
the State naming the institution would not satisfy
requirements.
42
Institution is Authorized to Conduct
Business in the State or to Operate as a
Nonprofit Charitable Organization
 If established on the basis of an authorization to conduct
business in the State or to operate as a nonprofit charitable
organization:
 Must comply with the State approval or licensure
requirements;
 Must be approved or licensed by name to offer programs
beyond secondary education, including programs leading to a
degree or certificate; and
 May not be exempt from the State approval or licensure based
on accreditation, years in operation, or a comparable
exemption.
43
State Must Establish Complaint Process
 The State must have a process applicable to all institutions:
 To review and address complaints, independent of the




school’s process, directly or through referrals; and
The State may fulfill this role through a State agency, the
State Attorney General as well as other appropriate State
officials; or
The State may use a combination of agencies.
State must remain responsible for responding to complaints,
but may refer them to other entities (i.e., an accrediting
agency for final resolution).
But all relevant officials or agencies must be included in an
institution’s institutional information that is disclosed
under §668.43(b).
44
Gainful Employment
§§600.2, 600.4, 600.5, 600.6,
668.6, 668.7, and 668.8
(http://ifap.ed.gov/gainfulemployment/info/, which
includes DCLs and FAQs)
45
Gainful Employment in a Recognized
Occupation
 Prior Rules: A proprietary institution of higher education,
and a postsecondary vocational school, and one-year
programs at institutions of higher education must provide
eligible programs of training that prepare students for
“gainful employment in a recognized occupation.” A
“recognized occupation” is listed in the “occupational
division” of the latest edition of the Dictionary of
Occupational Titles. Gainful employment is not defined.
46
Gainful Employment in a Recognized
Occupation, cont.
 Final Rules: A “recognized occupation” is re-defined by a
Standard Occupational Classification (SOC) code
established by the Office of Management and Budget
(OMB) or an Occupational Information Network O* NETSOC code established by the Department of Labor and
available at: http://online.onetcenter.org
47
Gainful Employment Reporting to the
Department of Education and Disclosures
to Prospective Students
 Gainful employment rules apply to:
 Programs that do not result in a degree at public and private
non-profit institutions; and
 Degree and non-degree programs at for-profit institutions
(except for some liberal arts programs).
 Non-Title IV programs are not subject to the gainful
employment disclosure and reporting requirements.
48
Gainful Employment Reporting to the
Department of Education and Disclosures
to Prospective Students, cont.
 A listing of CIP codes is available at:
http://nces.ed.gov/ipeds/cip2010.
 Standard Occupational Classification (SOC) codes are published
by the Department of Labor and are available at:
http://www.bis.gov/soc.
 There is a crosswalk between CIP and SOC codes that can be
found at http://www.onetonline.org/crosswalk.
49
Annual Submission
 An institution must annually submit information to the
Department for each student who is enrolled in a program that
prepares students for gainful employment in a recognized
occupation during an award year, the institution must provide
to the Department the following:
 Information that identifies the student, the institution, the
program, and the credential;
 If a student began attending a program during the award
year, provide the name, Classification of Instructional
Program (CIP) code of that program, and the credential;
50
Annual Submission, cont.
 If the student completed a program during the award year:


The name, CIP code, and credential of that program and
the date the student completed the program;
The total amounts the student received from private
education loans and the amount from institutional
financing plans that the student owed the institution upon
completing the program (any school financing that remains
upon graduation); and
51
Annual Submission, cont.
 Whether the student matriculated to a higher credentialed
program at the institution, or, if available, evidence that the
student transferred to a higher credentialed program at
another institution; AND
 For each program, by name and CIP code, offered by the
institution, the total number of students enrolled in the
program at the end of the award year and identifying
information for those students.
52
Annual Submission, cont.
 Reporting deadline: November 15, 2011:
 2006-2007 award year information if available;
 2007-2008, 2008-2009, 2009-2010, and 2010-2011 award year
information.
53
Annual Disclosures to Prospective
Students
 For each program with the same CIP code and credential offered
by the institution, the institution must provide prospective
students with the following information:
 The occupations by name and SOC codes (SOC = Standard
Occupational Classification) that the programs prepare
students to enter:
 With links to occupational profiles on O*NET [Enter the
program CIP codes on the O*NET crosswalk at
http://online.onetcenter.org/crosswalk/]
54
Annual Disclosures to Prospective
Students, cont.
 The on-time graduation rate for the students completing the
program:
 On-time graduation represents the percentage of students
who completed the program “no later than its published
length.” (See page 66838 of the Preamble of the final
regulations.)
NOTE: In other words, it is not completion within 150% of
the normal timeframe for first-time, first year undergraduate
students as provided under the Student Right-to-Know Act;
55
Annual Disclosures to Prospective
Students, cont.
 The tuition and fees it charges a student for completing the
program within the normal time, the typical costs for books and
supplies (unless those costs are included as part of tuition and
fees), and the cost of room and board, if applicable. The
institution may include information on other costs, such as
transportation and living expenses, but
 The institution must provide a Web link, or access, to the
program cost information the institution makes available
under the consumer disclosures.
56
Annual Disclosures to Prospective
Students, cont.
 The placement rate for students completing the program as
determined by a methodology developed by the NCES (NCES
has not as yet determined a placement methodology):
 In the meantime, if the institution is required by its
accrediting agency or State agency to calculate a placement
rate on a program basis, it must disclose that rate as well as
identify the accrediting agency or State agency under whose
requirements the rate was calculated (If an institution is
required to calculate placement rates for both the State and
accrediting agency, it must report both rates); and
57
Annual Disclosures to Prospective
Students, cont.
 If the accrediting agency or State agency requires an
institution to calculate a placement rate at the institutional
level or other than on a program basis, the institution must
use that same methodology to calculate a placement rate for
each program and disclose that rate.
58
Annual Disclosures to Prospective
Students, cont.
 The median loan debt incurred by students who completed the
program “as provided by the Secretary” as well as any other
information the Secretary provided to the institution about that
program. The median loan debt is segregated by:
 FFEL/Direct Loans;
 Private education loans; and
 Institutional financing plans (i.e., the amount student is
obligated to pay at completion of program).
59
Annual Disclosures to Prospective Students,
cont.
 The disclosures described above must be in “promotional materials”
made available to prospective students:
 Page 66836 of the Preamble of the final regulations states that
these disclosures should be made “available in promotional
materials conveyed to prospective students and the disclosure
must be simple and meaningful;”
 Section 668.6(b)(2)(iv) and page 66836 of the Preamble also state
that the Department intends to develop a disclosure form, but
until a form is developed and approved, institutions must comply
with the disclosure requirements independently. [NOTE: The
Department has developed a disclosure template and is currently
seeking public comment about the design of the form through the
information collection process under the Paperwork Reduction
Act of 1995. Information about the process and a draft of the form
can be found at: http://edicsweb.ed.gov.];
60
Annual Disclosures to Prospective Students,
cont.
 Page 66836 of the Preamble states that institutions must provide “clear
and prominent notice delivered to students at appropriate times and in
promotional materials prior to enrollment;”
NOTE: The FAQs state that if an “invitation, advertisement, or
solicitation mentions or otherwise refers to a specific educational
program or programs, the disclosure information must be included
whenever feasible. If providing the information is not feasible because of
the size or structure of the invitation, advertisement, or solicitation, an
institution may include either the printed URL or a live link to the website
where the required information is located, with a clear explanation of the
information that is available at the website. An example of a compliant
disclosure under the guidance could include the following text: “For
more information about our graduation rates, the median debt of
students who completed the program, and other important information,
please view our website at,
www.XYZcollege.edu/ABCprogram/disclosure.”
61
Annual Disclosures to Prospective
Students, cont.
 The disclosures must be provided prominently in a simple and
meaningful manner on the “home page of [the institution’s]
program Web site” as well as via a link on any other Web page
containing general, academic, or admissions information about
the program. The information must:
 Be in an open format that can be retrieved, downloaded,
indexed and searched by commonly used Web search
applications. An open format is one that is platformindependent, is machine readable, and is made available to
the public without restrictions that would impede reuse of
the information.
62
Annual Disclosures to Prospective
Students, cont.
 The FAQs state that institutions may initially use information
from the 2009-2010 award year for the disclosures that are
required by July 1, 2011. “However, within a reasonable amount of
time once 2010-2011 information is available, institutions must
update their disclosure information.”
63
Procedures for Reporting New Educational
Programs that Prepare Students for
Gainful Employment in a Recognized
Occupation
 Final regulations published on October 29, 2010 at 34 C.F.R.
600.20(d) provide that if an institution intends to add a new GE
program to its list of Title IV-eligible programs, it must notify
the Department of its intent at least 90 days prior to the first
day of class of the proposed program. The Department issued
Gainful Employment Electronic Announcements #5 and #16 to
describe the procedures, including the electronic application
instructions and the Notice Format.
64
Procedures for Reporting New Educational
Programs that Prepare Students for Gainful
Employment in a Recognized Occupation, cont.
 When reviewing application for a new program, the Secretary
will look at the following:
 Institution’s financial responsibility and administrative
capability;
 Whether program(s) will replace several similar programs
currently provided;
 Whether number of additional program(s) is consistent with
historic growth and operations; and
 Whether the process and determination by institution to
offer program(s) is sufficient.
65
Procedures for Reporting New Educational
Programs that Prepare Students for Gainful
Employment in a Recognized Occupation, cont.
 Notice to Secretary of new GE program must include:
 Description of how institution determined need for program and how





the program was designed to meet local market needs or for online
program, regional or national market needs;
Wage analysis the institution may have performed, including BLS
data;
Description of how program was reviewed or approved by business
advisory committees, program integrity boards, public or private
oversight or regulatory agencies, and businesses that would likely
employ graduates;
Submit documentation of accrediting agency approval;
Submit documentation of state approval; and
Provide date of the first day of class of the new program.
66
NPRM for Seeking Approval of New GE
Programs – 9/27/2011
 Limit new GE programs notification requirements for:
 Failing programs that were voluntarily discontinued.
 A program that became ineligible; or
 Substantially similar program to a failing program for any 1 of
2 most recent FYs.
67
Final Regulations to Gainful Employment
– 6/13/2011
 On June 13, 2011, the Department of Education issued final
regulations in the Federal Register requiring programs that
prepare students for gainful employment in a recognized
occupation to “better prepare students for ‘gainful employment’
or risk losing access to Federal student aid.”
 The final regulations apply to most non-degree and degreegranting programs at for-profit institutions (except for some
liberal arts baccalaureate programs that meet the exception) and
all nondegree programs at nonprofit and public institutions.
68
Final Regulations to Gainful Employment,
cont.
§668.7 Gainful employment in a recognized occupation:
 Minimum Standards: The rule states that a program is
considered to provide training that leads to gainful
employment in a recognized occupation if it meets one of the
following three measures:
 The program has a loan repayment rate of at least 35 percent
(Loan Repayment Rate assesses whether the FFEL and
Direct Loan debt incurred by a particular cohort of
borrowers to attend the program (graduates and
withdrawals) is being repaid at a rate that implies gainful
employment.);
69
Final Regulations to Gainful Employment,
cont.
 The program has an annual loan payment that is less than or
equal to 30 percent of discretionary income (Discretionary
Income Threshold determines whether the annual loan
repayment required on loan debt attributable to the
academic program by those who completed the program is
reasonable compared to their discretionary income); or
 The program has an annual loan payment that is less than or
equal to 12 percent of annual earnings (Actual Earnings
Threshold establishes whether the annual loan repayment
required on loan debt attributable to the academic program
by those who completed the program is reasonable when
compared to their actual annual earnings).
70
Final Regulations to Gainful Employment,
cont.
 An academic program that passes any one standard is
considered to be preparing students for gainful employment. A
program that fails all three standards for a given year is
considered to have failed to demonstrate that it meets the
gainful employment condition of program eligibility for that
year. A program that fails all three standards for three out of
four years loses Title IV eligibility. (The Department’s position
is that a good program could have a bad year, but it is far less
likely that a good program could have three bad years out of
four years. Consequently, the first year that a program could
lose eligibility under the final rules is early 2015 when ED issues
the debt measures for FY 2014.)
71
Final Regulations to Gainful Employment,
cont.
 Debt measures refer to the loan repayment rate and debt-to-
earnings ratios.
 A fiscal year (FY) is the 12-month period starting October 1 and
ending September 30. For example, FY 2013 is from October 1,
2012 to September 30, 2013.
 A two-year period is the period covering two consecutive FYs
that occurs on:
 The third and fourth FYs (2YP) prior to the most recently
completed FY for which the debt measures are calculated.
For example, if the most recently completed FY is 2012, the
2YP is FYs 2008 and 2009; or
72
Final Regulations to Gainful Employment,
cont.
 For FYs 2012, 2013, and 2014, the first and second FYs (2YP-
A) prior to the most recently completed FY for which the
loan repayment rate is also calculated during a transition
period. For example, if the most recently completed FY is
2012, the 2YP-A is FYs 2010 and 2011.
73
Final Regulations to Gainful Employment,
cont.
 Discretionary income is the difference between the mean or
median annual earnings and 150 percent of the most current
Poverty Guideline for a single person in the U.S., which are
published by HHS and are available at:
http://aspe.hhs.gov/poverty.
74
Final Regulations to Gainful Employment,
cont.
 Loan Repayment Rate: The annual loan repayment rate for
an academic program is the percentage of loans borrowed to
attend that program that are in satisfactory payment three to
four years after entering repayment. For example, the loan
repayment rate for FY 2012 (October 1, 2011 through September
30, 2012) will be determined based on loans that entered
repayment during either FY 2008 or FY 2009 (October 1, 2007
through September 30, 2009) and were in acceptable
repayment status during the period October 1, 2011 through
September 30, 2012. [NOTE: The FY 2012 period used to
determine the acceptable repayment status is four years after
the loans entered repayment during FY 2008 and three years
after the loans entered repayment during FY 2009.]
75
Final Regulations to Gainful Employment,
cont.
 For the most recently completed FY, the Secretary will calculate
the loan repayment rate as follows:
OOPB of LPF plus OOPB of PML
OOPB
 Original Outstanding Principal Balance (OOPB) is the amount
of the outstanding balance, including capitalized interest, on
FFEL or Direct Loans owed by students (graduates and
withdrawals) for attendance in the program on the date those
loans first entered repayment.
76
Final Regulations to Gainful Employment,
cont.
 For consolidation loans, the OOPB is the OOPB of the FFEL
and Direct Loans attributable to a borrower’s attendance in
the program;
 For FYs 2012, 2013, and 2014 only, the Secretary will calculate
two loan repayment rates for a program, one with the 2YP and
one with the 2YP-A (if more than 30 borrowers entered
repayment). The Secretary will determine if the program
meets minimum loan repayment rate under either rate.
77
Final Regulations to Gainful Employment,
cont.
 Loans Paid in Full (LPF) are loans that have never been in
default, including a consolidation loan and its underlying loans.
Consolidation loans must be paid in full to be considered LPF.
 Payments Made Loans (PML) are loans that have never been in
default, including a consolidation loan and its underlying loans,
and:
 PML are payments made by a borrower during the most
recently completed FY that reduce the outstanding balance of
the loan, including the outstanding balance of a
consolidation loan, to an amount that is less than the
outstanding balance of the loan at the beginning of that FY
by $1.00. The outstanding balance includes unpaid accrued
interest that has not been capitalized.
78
Final Regulations to Gainful Employment,
cont.
 A borrower is in the process of qualifying for Public Service
Loan forgiveness and submits an employment certification to
the Secretary.
79
Final Regulations to Gainful Employment,
cont.
 A borrower in the income-based repayment plan (IBR), income
contingent repayment plan (ICR), or any other repayment plan makes
scheduled payments during the most recently completed FY for an
amount that is equal to or less than the interest that accrues on the
loan during the FY. The Secretary limits the dollar amount of these
interest-only or negative amortization loans in the numerator of the
ratio to no more than 3% of the total amount of OOPB in the
denominator of the ratio. (Because the objective of the gainful
employment regulations is to determine whether borrowers can
actually pay off their loans, ED is limiting the amount of loans that can
be in an acceptable repayment status when the payments made over the
fiscal year do not actually achieve a reduction in the principal balance
(i.e., interest only or negative amortization loans). The Secretary will
include in the numerator 3% of the OOPB in the denominator until
more data is available on which the program’s borrowers have
scheduled payment that are equal to or less than accruing interest.)
80
Final Regulations to Gainful Employment,
cont.
 Exclusions from the numerator and denominator include:
 Loans that were made to parent borrowers;
 Loans that were in an in-school deferment status during any
part of the FY;
 Loans that were in a military-related deferment status during
any part of the FY;
 Loans that were discharged as a result of the death of the
borrower; and
 Loans that were assigned or transferred to ED for total and
permanent discharge.
81
Final Regulations to Gainful Employment,
cont.
NOTE: Loans that are in deferment or forbearance are not
excluded.
 Example for FY 2012:
LPF is $10,000 plus PLM is $40,000 in FY 2012 = 50%
OOPB is $100,000 for loans entering repayment in FY 2008 and FY 2009
 The Loan Repayment Rate measures whether former students
(graduates and withdrawals) can repay their loans. The
threshold is set at 35 percent.
82
Final Regulations to Gainful Employment,
cont.
 Debt-to-Earnings Ratios:
 Discretionary Income rate:
Annual loan payment based on median loan debt
Higher of Mean or Median Annual Earnings – (1.5 X Poverty Guideline)
 Earnings Rate:
Annual loan payment based on median loan debt
Higher of Mean or Median Annual Earnings
 Mean is the average of all the values divided by the number of
items added.
83
Final Regulations to Gainful Employment,
cont.
 Median is the middle value of a list arranged in order of value
and the highest and lowest values cancel each other out. (See
Q&A #5 of the Gainful Employment – FAQs at
http://ifap.ed.gov/GainfulEmploymentInfo/2011GEFAQ.html.)
NOTE: The final regulations consider programs with a median loan
debt of zero to be meeting the measures since there is no debt
burden on the students in the program.
84
Final Regulations to Gainful Employment,
cont.
 The program’s Annual Loan Repayment must be less than or
equal to:
 30 percent of discretionary income; or
 12 percent of annual earnings.
 Cohort of Program Completers:
 The debt-to-earnings ratio uses the income earned during the
calendar year preceding the most recently completed fiscal
year by former students who completed the program during
an earlier period of time. Programs will be assessed based on
two years of performance, unless a program has fewer than 30
program completers in a two-year period. If so, the program
will be based on a four-year period.
85
Final Regulations to Gainful Employment,
cont.
 In general, most programs will use a cohort of former students
who completed the program in the two-year period (2YP)
consisting of the third and fourth fiscal years prior to the fiscal
year for which the debt measures are calculated. For example,
for FY 2012, the cohort of graduates will be the 2YP (fiscal year
2008 and fiscal year 2009). The earnings from calendar year 2011
will be used for those students who completed the program from
October 1, 2007 through September 30, 2009.
86
Final Regulations to Gainful Employment,
cont.
 Annual Loan Payment is based on the median loan debt for each
student who completed the program during the 2YP, the 2YP-R,
the 4YP, or the 4YP-R, using the lesser of:
 The amount of loan debt incurred by the student; or
 If tuition and fee information is provided by the institution,
the tuition and fees the institution charged the student
enrolled in all programs at the institution; and
87
Final Regulations to Gainful Employment,
cont.
 Using the median loan debt for the program and the current
annual interest rate on Unsubsidized Direct Loans (6.8%) on
a:
 10-year repayment schedule for a program that leads to an
undergraduate or post-baccalaureate certificate or to an
associate’s degree;
 15-year repayment schedule for a program that leads to a
bachelor’s degree or master’s degree; or
 20-year repayment schedule for a program that leads to a
doctoral or first-professional degree.
88
Final Regulations to Gainful Employment,
cont.
 Loan debt includes:
 FFEL and Direct Loans (except for parent PLUS or TEACH
Grant-related loans), including capitalized interest owed
by the student for attendance in the program;
 Any private education loans (reported to ED via NSLDS no
later than 10/1/2011- See 34 C.F.R. 668.6); or
 Debt obligations arising from institutional financial plans
(reported to ED via NSLDS no later than 10/1/2011 – See 34
C.F.R. 668.6).
89
Final Regulations to Gainful Employment,
cont.
 Annual earnings will be obtained from the Social Security
Administration (SSA) or another Federal agency and the
Secretary will obtain the most currently available mean and
median annual earnings of the students who completed the
program during the 2YP, the 2YP-R, the 4YP, or the 4YP-R, as
applicable.
90
Final Regulations to Gainful Employment,
cont.
 Draft debt measures process for the Debt-to-Earnings ratios:
 Beginning with the FY 2012, the Secretary will issue draft
results of the debt measures for each program offered by
the institution, which may be corrected by the institution.
(1) Pre-draft corrections process for the Debt-to-Earnings Ratios:
 Before issuing draft results of the debt measures, the Secretary
will provide a list of the students who will be included in the
applicable two-year or four-year period;
91
Final Regulations to Gainful Employment,
cont.
 No later than 30 days after the date the Secretary provided the
list, the institution must:
 Provide evidence that a student should be included or
excluded from the list; or
 Correct or update the identity information, such as the name,
SSN, or date of birth.
 After the 30-day correction period, the institution may no
longer challenge the list or update the identity of the students.
 The updated list will be used to create a final list of students
that ED submits to SSA.
 The Secretary will calculate the draft Debt-to-Earnings ratios
based on the mean and median earnings provided by SSA
(cannot be challenged by institution).
92
Final Regulations to Gainful Employment,
cont.
(2) Post-draft Corrections Process for Debt Measures:
 No later than 45 days after the Secretary issues the draft results
of the Debt-to-Earnings ratios for a program and no later than
45 days after the Secretary issues the draft results of the loan
repayment rate for a program, an institution:
 May challenge the accuracy of the loan data for a borrower
that was used to calculate the draft loan repayment rate or
the median loan debt for the program that was used in the
numerator of the draft-to-earnings ratios, by submitting
evidence showing that the borrower loan data or the
program median loan debt is inaccurate; and
93
Final Regulations to Gainful Employment,
cont.
 May challenge:
The accuracy of the list of borrowers used to calculate the
loan repayment rate by providing evidence that a borrower
should be included or excluded from the list; or
 Correct or update the identity information provided for a
borrower on the list, such as name, SSN, or date of birth.
(3) Recalculated Results: The information provided by the
institution will be used, unless the SSA is unable to include in its
calculation of the mean and median earnings for the program one
or more students. Under these circumstances, the median will be
adjusted by removing the highest loan debt associated with the
number of students SSA is unable to include.

94
Final Regulations to Gainful Employment,
cont.
 Final Debt Measures: The Secretary notifies the institution of the
results of any corrections and will provide the final debt measures:
 Alternative Earnings: If the program fails to meet the debt
measure requirements for a FY, the institution may provide
alternative earnings using:
 State data: For FY 2012 and any subsequent year, institution
may use State data for more than 50% of the students earnings
data from State-sponsored data system;
95
Final Regulations to Gainful Employment,
cont.
 Survey data: For FY 2012 and any subsequent year, may use
data from institutional survey conducted of the students in the
applicable period and the data is for more than 30 students.
Submit copy of survey, a certification that the survey met
NCES standards, and examination-level attestation by an
independent CPA;
 BLS data: For FY 2012, 2013, and 2014, an institution may use
BLS earnings to recalculate the ratios by providing
documentation of the occupation by SOC code in which more
than 50% of the students in the period were placed or found
employment and that the number of students is more than 30.
96
Final Regulations to Gainful Employment,
cont.
 After the Secretary calculates the final debt measures:
Institution must disclose the final debt measures for each
program; and
 ED may disseminate the final debt measures.
 Failing Program: Starting with the debt measures calculated for
FY 2012, the program is a failing program if it does not meet any of
the minimum standards. [NOTE: Students enrolled in a failing
program remain eligible for Title IV funds.]
 Ineligible Program: A failing program becomes ineligible, if
starting with the debt measures calculator for FY 2012, it does not
meet any of the minimum standards for three out of the four most
recent FYs.

97
Final Regulations to Gainful Employment,
cont.
 Debt Warnings: A failing program must warn in a timely manner
currently enrolled and prospective students of the consequences
of failure:
 First-year failure: The institution must provide to each enrolled
and prospective student a warning prepared in plain language and
presented in an easy to understand format that:
 Explains the debt measures and show the amount by which
the program did not meet the minimum standards; and
 Describes any actions the institution plans to take to improve
the program’s performance under the debt measures.
98
Final Regulations to Gainful Employment,
cont.
 Is delivered orally [face-to-face conversation] or in writing
directly to the student. If orally delivered, it must maintain
documentation of the student’s presence and how the
information was provided to the student.
 Debt Warning must be provided until the Secretary notifies
the institution otherwise.
99
Final Regulations to Gainful Employment,
cont.
 Second year failure: The institution must provide to each
enrolled and prospective student a warning prepared in
plain language and presented in an easy to understand
format that:
 Provides first-year Debt Warnings;
 Provides plans to take to respond to the second failure [If
the institution plans to discontinue the program voluntarily,
it must provide the timeline for doing so and the student
options] ;
 Provides the risks associated with enrolling and continuing
in the program and options available if the program
becomes ineligible for Title IV;
100
Final Regulations to Gainful Employment,
cont.
 Provides the resources available, including
http://www.collegenavigator.gov so that the student can
research other educational options and compare program
costs; and
 Provides a clear and conspicuous statement that a student
who enrolls or continues in the program should expect to
have difficulty repaying his/her student loans.
 Institution must continue to provide Debt Warnings until
program has met minimum standards for two of the last three
years.
101
Final Regulations to Gainful Employment,
cont.
 Timely Warnings: The institution must provide the warnings:
 No more than 30 days after ED notice to enrolled students
that the program has failed; and
 To prospective students at the time they first contact the
institution.
 May not enroll prospective students until 3 days after
debt warnings are first provided; and
 If more than 30 days pass from the date of the debt
warning, debt warnings must be issued again to
prospective students for 3 additional days.
102
Final Regulations to Gainful Employment,
cont.
 Web site and promotional materials: For second year debt
warning, institution must prominently display debt warning on
the program home page of its Web site and include on all
promotional materials made available to prospective students.
[NOTE: The preamble states that “promotional materials” are
defined broadly and include course catalogues, brochures,
television ads, and poster advertisements that mention or list
the program. However, if a poster is an advertisement for the
institution as a whole or for other institutional programs that
have not failed the minimum standards for more than one of
the three most recent fiscal years, the warning is not required.]
103
Final Regulations to Gainful Employment,
cont.
 Voluntarily discontinued failing program: Must promptly
notify students when ED notified. [The date of written
notification to the Secretary is the date the institution
relinquishes eligibility.]
104
Final Regulations to Gainful Employment,
cont.
 Transition year: The earliest a program can become ineligible is in
early 2015 after the Department has calculated the debt measures for
FYs 2012, 2013, and 2014. However, the final regulations provide for a
transition year during which the number of programs losing Title IV
eligibility will be limited to no more than 5% of the total number of
students who completed their programs during FY 2014. The
regulations apply the cap to each of three institutional categories –
public, private nonprofit, and proprietary – to ensure that no sector
bears more than 5%. Within each institutional category, loan
repayment rates will be sorted from lowest to highest. Starting with
the lowest repayment rate, ED will identify ineligible programs until
the 5% cap is reached, but not exceeded. [NOTE: Although no
sanctions will be applied during the transition year to ineligible
programs that have a rate over the cap, the program’s rate during the
transition year will count as a failing year in subsequent years.]
105
FFEL/Direct Loan
Cohort Default Rates
106
What is the CDR Calculation?
 A cohort default rate is the percentage of the number of the
school’s FFEL and Direct Loan borrowers who enter repayment
in one Federal Fiscal Year (October 1 through September 30) who
default in that federal fiscal year or by the end of the next federal
fiscal year.
107
HEOA Changes
 Increases the CDR monitoring period from two to three years.
 Beginning with the 2009 cohort, the calculation will be:
 Borrowers who default in that federal fiscal year or by the end
of the next two federal fiscal years.
 Establishes a three-year transition period for sanctions.
108
2-Year Versus 3-Year Calculation
The Numerator is the number
of borrowers from the
denominator who default
within a cohort period
FY-09
125
FY-10
230
The Denominator is the
number of borrowers who enter
repayment within a cohort
period
355
5000
.071 or 7.1%
605
5000
.121 or 12.1%
5,000
FY-09
125
FY-10
230
FY-11
250
5,000
109
Transition Period
110
Questions??
Sharon H. Bob, Ph.D. – Sharon.Bob@ppsv.com
Powers Pyles Sutter & Verville PC
1501 M Street NW, Seventh Floor | Washington, DC
20005
tel 202.466.6550 | fax 202.785.1756
February 23, 2012
111
Sharon H. Bob, Ph.D.
Practice Areas:
• Education
• Title IV Eligibility & Compliance
• Program Reviews and IG Audits
• Accreditation
• Mergers & Acquisitions
• Public Policy & Government
Relations
• State Licensing
• Education Policy
Member:
• NASFAA
• CCA
Education:
• Ph.D., University of Maryland,
1976
• BA, State University of Buffalo,
1971, summa cum laude
Sharon H. Bob, Ph.D., Higher Education Specialist on Policy and Regulation, is a member
of the Education Group at the Washington, D.C. law firm of Powers Pyles Sutter & Verville,
P.C. Dr. Bob advises all sectors of higher education regarding strategic issues pertaining to
their participation in the federal student financial assistance programs, accreditation,
licensure, education tax benefits, and related regulatory matters.
Dr. Bob advises public and private colleges and universities, as well as private and publiclytraded companies. In this role, she provides clients with detailed technical guidance related
to compliance with applicable statute and regulations. She regularly assists postsecondary
educational institutions on issues relating to institutional eligibility, program eligibility,
student eligibility, financial responsibility and administrative capability standards, changes
of ownership, adding locations and programs, program reviews and compliance audits, and
institutional responsibilities for the education tax benefits. Through training seminars and
on-site reviews, she assists clients in complying with the federal requirements for
administering federal student financial assistance. Dr. Bob has authored numerous articles
on federal financial aid issues for The Career Education Review, NASFAA's Journal of
Student Financial Aid, NASFAA's Student Aid Transcript, the Career College Link, and other
higher education publications and frequently speaks at meetings of college officials and
student aid administrators.
Dr. Bob received her undergraduate degree summa cum laude from the State University of
New York at Buffalo and was elected to Phi Beta Kappa. She received her doctorate from the
University of Maryland.
Powers Pyles Sutter & Verville is a Washington, D.C.-based law firm that focuses on health
care, education, and the law of tax-exempt organizations.
112
Mary Hale Barry
Vice President, Academic Affairs
American Career College
113
February 24, 2012
114
A School’s Perspective
General
 Continuing anxiety over interpretation of regulations
 Impact on all areas of the organization
 Ever-increasing administrative burden and costs
115
Select Issues
 Employee Compensation
 Gainful Employment
Plans
 ATBs
 Clock/Credit Hour
Conundrum
 Program Outcomes
116
Employee Compensation
 Eliminated incentive payments of any kind for enrolling or re-
entering
students,
processing
retaining/completing students
financial
aid,
and
 Developed different language and measures for coaching,
evaluating performance/merit raises, terminating employment –
quantitative to qualitative
 Updated on-boarding process for all employees, increased
training, developed policies and employee attestations to address
misrepresentation and other compliance issues
117
Clock/Credit Hour Conundrum
 Preliminary review in early 2011 revealed contact hours
(classroom + outside) in core 720 hour programs were well in
excess of 1,000 hours in programs needing to qualify
 Required
renewed commitment to standardization,
documentation, and tracking of all activities
full
 Moving away from manual processes to reduce vulnerability to
instructor vagaries – e.g., electronic grade book
 May consider adding a qualifying associates degree
118
Gainful Employment
Program Approval
Reporting/Disclosures
 Requirement to notify
 Clear, prominent notice – on time
USDOE may double the time
to market for new programs
(research, time to review)
 First program has been
submitted for review
 Biggest concern is sufficiency
of market justification
completion, placement, median
loan debt – not the issue
 Updated agreements with
marketing partners
 Enormous burden of mining,
validating and upkeep of data
 Why does USDOE ignore conflict
between 90-10 , amount of eligible
aid, gainful employment regs?
 Looming issues – debt load/
graduate wages; source of wage
data; SOC codes and related
placements
119
Discontinuation of ATBs
 Impact varies with portion of ATB students – some major
organizations already withdrew from this segment in previous
years; some are in at rates up to 40%
 Possibly the most misguided policy coming out of the
regulations – especially in a market such as Los Angeles with
40% of high school students failing to graduate
 Where will they go?
120
Program Outcomes
 The continuing economic recession, the heightened scrutiny on
the for-profit education sector, USDOE’s re-recognition of the
major accreditors, and gainful employment regulations have put
enormous pressure on completion and graduate placement
outcomes
 Requires careful program planning – such as using an
enrollment/graduate/placement yield model to carefully build
each portfolio
 The traditional ways of matching graduates to employers is no
longer sufficient
 Third Party Placement Verification (outside the CS Office)
121
Elise Scanlon
Elise Scanlon Law Group
122
Draft Final Report Analysis
ABHES 2012 Annual Conference
Elise Scanlon
Elise Scanlon Law Group
123
Topics Considered
 1. The Triad of actors in educational quality assurance
 States
 Accrediting Agencies
 U.S. Department of Education
 2. The scope, alignment and accountability of accreditation
activity
 3. The regulatory burden and data needs
124
25 Recommendations
 Overarching recommendation: To retain accreditation as a
gatekeeper in the institutional eligibility process.
 Accreditors are the most experienced source of information about
academic quality
 Academic specialists required in judgments about quality
 Accreditation deploys extraordinary academic talent in the service
of quality assurance in a cost-effective manner.
125
Several Themes
 Strengthening the TRIAD





(collaboration/communication/cooperation)
Rebalancing of Roles of the TRIAD partners
Examining the state and federal role in quality assurance
Review the structure and organization of the accreditation
enterprise
Examine the use of data in quality assurance
A note about NACIQI
126
Strengthening the TRIAD
 Hints at expansion of the Federal role
 Federal government’s responsibility includes quality as well as
financial considerations
 Federal government as a “convener” to promote communication and
collaboration among the TRIAD partners (Kanter: Search for
“Islands of Innovation”)
 Greater federal role in data collection and use
 Define a specific set of data needed to address the federal interest
and/or institutional improvement
 IPEDS Data more accurate, timely and useful
 Unit Records System
127
States
 State laws inconsistent with “newer” methods of education that
are not tied to land boundaries
 Develop models that promote greater engagement and
consistency across states.
 Encourage state effort to assure the adequacy of consumer
information and the accountability of institutions and programs
providing education with in the state.
128
Accreditation
 Provide more support (indemnification) to reduce legal risk and
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burden
Explore aligning accreditation with mission rather than
geography (regional accreditation)
Add differentiation in review process between “institutions with
a longstanding competent performance on quality indicators and
those that might be “fragile, unstable, low-performing, rapidly
expanding or newly-approved.”
Encourage gradations in accreditation decisions
Encourage systems for expedited review
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Questions and Comments
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Contact Information
 Katherine Brodie
Vice President for Government and
Legal Affairs
Association of Private Sector Colleges &
Universities (APSCU)
 Mary Hale Barry, JD, MBA
Vice President, Academic Affairs,
American Career College
mbarry@americancareercollege.edu
(949) 783-4074
Katherine.Brodie@apscu.org
(202) 336-6810
 Sharon H. Bob, Ph.D.
Higher Education Specialist
Powers Pyles Sutter & Verville, PC
www.ppsv.com
(202) 466-6550
 Elise Scanlon
Elise Scanlon Law Group
elise.scanlon@elisescanlonlawgroup.com
(202) 872-6767
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