DEVELOPMENTS IN HIGHER EDUCATION

The U.S. Department of Education plans to hold a series of negotiated rule-making sessions in Spring 2023 to propose new rules. Topical areas include amending regulations on accreditation under the Higher Education Act of 1965, as amended (HEA), including rules associated with the standards 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. Secretary Miguel Cardona plans to amend regulations on state authorization as a component of institutional eligibility and also plans to propose to amend regulations that determine whether postsecondary educational programs prepare students for gainful employment in recognized occupations, and the conditions under which institutions and programs remain eligible for student financial assistance programs under Title IV of the Higher Education Act (HEA). Another proposal of interest is to amend the definition of distance education. A final set of regulations overhauling Title IX of the Education Amendments of 1972 is expected to occur in May.

The Biden administration has expressed strong interest in cancelling a portion of student debt. The     proposal would cancel as much as $10,000 in federal student debt for borrowers making under $125,000 a year, or $250,000 for a married couple. Recipients of Pell Grants would be entitled to an extra $10,000 of debt cancellation. Private loans, which make up less than 10% of all outstanding student debt, will not qualify unless they already had been consolidated into a federal loan. An obstacle to implementation occurred on November 14, 2022 when a three-judge panel of the Eighth U.S. Circuit Court of Appeals   issued a preliminary injunction to block the plan. The U.S. Supreme Court has entered the controversy by agreeing to decide whether student-loan debt relief for millions of Americans can go into effect. The Court became involved after Republican officials in six states claimed that the debt relief proposal was an unlawful exercise of presidential authority, which would affect state revenues and tax receipts. The matter is being decided by the justices on a fast-track timeline that may lead to a final ruling by the end of June 2023.

 Departments Of Education And Justice Filed A Legal Brief With The Supreme Court

The Biden administration remains committed to striving to deliver essential student debt relief to tens of millions of Americans. As part of this pledge, the Departments of Education and Justice filed a legal brief with the Supreme Court explaining the legal authority under the Higher Education Relief  Opportunities for Students Act to carry out a program of one-time, targeted debt relief. Department of Education Secretary Cardona stated that the purpose is to helping borrowers recover from the COVID-19 pandemic and providing working families with the breathing room they need to prepare for student loan payments to resume. As previously intended, student loan payments and interests will remain paused until the Supreme Court resolves the case because it is considered deeply unfair to ask borrowers to pay debt they wouldn’t have to pay, were it not for lawsuits viewed by the Administration as meritless.

 Rising Health Fees For College Students

Apropos of the topic of student educational debt, many families find it quite challenging to be able to    finance costs involving tuition, campus housing, meals, and activity fees. Another expense that can add to their anguish is rising health fees. Kaiser Health News discussed this issue in a report on December 19, 2022. Newly enrolled freshmen are discovering that it also is necessary to purchase both a student health insurance premium and a fee that allows them to access on-campus clinics and other services. The costs vary by school, but often can amount to several thousand dollars a year. The average for public colleges is $2,712 and $3,540 for private universities, according to a 2002 survey, but charges can be as high as $4,500 to more than $6,500, depending on the institution. Students can seek a waiver to university health insurance by showing they have their own coverage or are covered by a policy of their parents that meets specific university criteria. Some institutions, however, typically want to know that a student’s own insurance covers local doctors and hospitals for little out-of-pocket cost.