U.S. Department of Education and state of California attempt to reach accord to restore Title IV eligibility to California residents enrolled in distance education courses offered by out-of-state public and nonprofit institutions

As widely reported in the news and as discussed in our recent webinar, on 22 July 2019 the U.S. Department of Education (ED) notified institutions that, as a result of the U.S. District Court ruling in NEA v. DeVos, ED's 2016 regulations concerning state authorization and other related matters (2016 Final Regulations) took effect on 26 May 2019.

ED's announcement concerning California's noncompliance

Under the 2016 Final Regulations, Title IV-eligible institutions are not authorized to disburse federal student aid to students enrolled in distance education courses who are residents of states that do not have a state process to review and take appropriate action on complaints from those students (or, in the alternative, do not participate in a state authorization reciprocity agreement that addresses the issue). In the 22 July Electronic Announcement, ED singled out the state of California, which had failed to establish a process to manage complaints concerning out-of-state public and nonprofit institutions offering distance education courses to California residents. (California has a complaint process for out-of-state for-profit institutions that are registered with the state's Bureau for Private Postsecondary Education, which are not impacted by ED's action). California has not joined the State Authorization Reciprocity Agreement (SARA).

Read More: U.S. Department of Education and state of California attempt to reach accord to restore Title IV eligibility to California residents enrolled in distance education courses offered by out-of-state public and nonprofit institutions


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