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Federal Regulations and Requirements for Financial Value Transparency and Gainful Employment Reporting

CC24-039•08/12/2024
From: Brian S. Merritt, Ph.D., Senior Vice President & Chief Academic Officer
To: Presidents

Regulations for Financial Value Transparency (FTV)/Gainful Employment (GE) were published by the Department of Education on October 10, 2023: https://fsapartners.ed.gov/knowledge-center/library/federal-registers/2023-10-10/final-regulations-financial-value-transparency-and-gainful-employment.

These regulations apply to most educational programs that are eligible to participate in federal financial aid programs for students authorized under Title IV of the Higher Education Act of 1965, as amended (HEA) and were effective July 1, 2024.

It is important to note that FVT and GE regulations are separate sets of requirements and are applied to several types of educational programs. FVT regulations aim to improve the quality and availability of information provided directly to students enrolled in all Title IV eligible programs. GE regulations set accountability standards for GE programs using earnings premium and debt-to-earnings measurements to determine whether a GE program remains eligible for Title IV funding.

FVT regulations include student costs, sources of financial aid, and outcomes of students enrolled in all Title IV eligible programs, including both GE and non-GE programs, and used to establish debt-to-earnings measure and the earnings premium measure. These measures will be used by the Department to determine whether a program has unfavorable financial consequences to students.

GE regulations include all non-degree programs (i.e., certificate programs, diploma programs) leading to recognized credentialing at public and private non-profit institutions except comprehensive transition and secondary CTP (Comprehensive Transition Program) and prison education programs. 

In accordance with 34 CFR 668.14(b)(26), the number of hours in a GE program for new students was to be limited beginning July 1, 2024. The provision was to be limited to non-degree programs not offered entirely through distance education and the maximum program length was to be established by the institution’s State. The Department of Education published this guidance on the implementation of program length restrictions for GE programs in April 2024: https://fsapartners.ed.gov/knowledge-center/library/dear-colleague-letters/2024-04-15/implementation-program-length-restrictions-gainful-employment-ge-programs.

Subsequently, the Department of Education has issued a series of updates about FVT/GE reporting, including an announcement on July 3, 2024, stating a temporary injunction on Gainful Employment Program Hours Length (GEPH) which suspended the 100% program hours length requirement for certificate and diploma programs. Colleges must still meet the scheduled reporting deadline to report all GE and non-GE programs at the current 150% of program hours length requirement for certification/licensure as well as the student specific requirements for FVT.

For more information on this temporary injunction, view here: https://fsapartners.ed.gov/knowledge-center/library/electronic-announcements/2024-07-03/temporary-injunction-program-length-regulations

Reporting on FVT/GE data began on July 1, 2024, and colleges have until October 1, 2024, to meet all required reporting deadlines. All subsequent reporting will be due on October 1 following the end of the award year.

Colleges will report data through the National Student Loan Data System (NSLDS) and must enroll their SAIG (Student Aid Internet Gateway) mailbox: https://fsapartners.ed.gov/knowledge-center/library/electronic-announcements/2024-06-13/preparing-nslds-fvt/ge-reporting-saig-enrollment-online-access.

NCCCS Response:  

Per Department guidance, programs need to “demonstrate a reasonable relationship between the length of the program and entry-level requirements for the recognized occupation for which the program prepares the student…” This is currently referred to by many financial aid administrators as the “150 percent rule.”

If the “150 percent rule” is officially rescinded and becomes the “100 percent rule,” NCCCS will:

1.      Take action to propose curriculum changes as expeditiously as possible to the State Board of Community Colleges for the necessary programs.

Changes would align with the following Department of Education guidance:

a.       Minimum number of clock hours, credit hours, or the equivalent required for training in the recognized occupation for which the program prepares the student, as established by the state in which the institution is located, if the state has established such a requirement or as established by any Federal agency.

b.      Another state’s required minimum number of clock hours, credit hours, or the equivalent required for training in the recognized occupation for which the program prepares the student if the institution is able to document and substantiate certain conditions as provided under § 668.14(b)(26)(ii)(B).

2.      To allow colleges the opportunity to align their efforts, enclosed with this memo is a list of curriculum programs in which hours are regulated outside of exclusive oversight of the State Board of Community Colleges. Per FSA guidance, these are programs linked to “training in the recognized occupation for which the program prepares the student, as established by the state in which the institution is located if the state has established such a requirement, or as established by any Federal agency.”

 

 

Colleges are reminded to follow the Department of Education’s Dear Colleague Letters and Electronic Announcements for the most up-to-date information. Below are links to the most recent announcements.

Frequently Asked Questions, providing informational updates and guidance is provided and updated as needed.

https://fsapartners.ed.gov/knowledge-center/topics/financial-value-transparency-and-gainful-employment-information/frequently-asked-questions.

Colleges are encouraged to review the NSLDS Financial Value Transparency and Gainful Employment User Guide: https://fsapartners.ed.gov/knowledge-center/library/nslds-user-resources/2024-04-30/nslds-financial-value-transparency-and-gainful-employment-fvt/ge-user-guide-may-2024-update-2.

Colleges may contact the School Participation team by email at atlantaSPD@ed.gov or by phone at 404-974-9303.

CC:

NCCCS Student Development Administrators
NCCCS Chief Academic Officers
Dr. Jeff Cox, NCCCS President
Dr. Kim Gold, NCCCS SVP and Chief of Staff
Dr. Torry Reynolds, NCCCS AVP of Student Services

 

Attachment to CC24-039_NCCCS GE Program List – August 2024 – updated

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