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New Cases and Developments

NACUA's Legal Resources staff summarizes current higher education cases and developments and provides the full text of selected cases to members. New cases and developments are archived here for up to 12 months.  Cases provided by Fastcase, Inc.

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Authorizations & Regulations; Government Relations

Federal Student Aid Posts Updated Cybersecurity Compliance Frequently Asked Questions (FAQ) (Jan. 12, 2018)

The Federal Student Aid (FSA) has updated its Frequently Asked Questions (FAQ) About Cybersecurity Compliance. The FAQs clarify some of the data security and breach questions that arose during a recent FSA Training Conference by outlining data security requirements, specifying how and when to report a breach, and discussing secure means for transporting personally identifiable information.

1/17/2018
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Government Relations; Authorizations & Regulations

NACUBO “What Did I Miss in Washington? Dec. 12, 2017 – Jan. 8, 2018”

Summary from the National Association of College & University Business Officers on legislative and regulatory actions that occurred between December 12, 2017 and January 8, 2018. This summary addresses the reauthorization of the Higher Education Act, the tax bill, DACA, Borrower Defense to Repayment, and Net Neutrality.  

1/11/2018
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Government Relations; Authorizations & Regulations

U.S. Dep’t of Education Announces Improved Borrower Defense Discharge Process (Dec. 20, 2017)

Announcement by the U.S. Department of Education unveiling an improved discharge process for borrower defense to repayment claims. A borrower defense to repayment claim allows students to seek loan forgiveness if they can demonstrate that the school they attended violated state law. The improved process utilizes a tiered system of relief that compares the earnings of affected students to their peers in gainful employment programs. Specifically, students whose income is less than fifty percent as compared to their gainful employment peers will receive full relief, while students who earn fifty percent or more than their gainful employment peers will receive proportionally tiered relief to compensate for the difference. Negotiated rulemaking for borrower defense to repayment regulations are ongoing and interested parties should refer to the Department’s website for a full schedule of the negotiator’s meetings. 

12/21/2017
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Government Relations; Authorizations & Regulations

U.S. Dep’t of Education Releases Additional Funding to Support Schools and Students Impacted by Hurricanes (Dec. 14, 2017)

Announcement by the Secretary of the U.S. Department of Education authorizing additional funds for the Federal Work-Study Program, which provides jobs for undergraduate and graduate students with financial need as a means of alleviating their educational expenses. The additional $10.4 million funds will be distributed to schools in major disaster areas affected by hurricanes Harvey, Irma, and Maria, as well as schools that have enrolled a high volume of students affected by these disasters. 

12/20/2017
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Government Relations

National Association of Independent Colleges and Universities (NAICU) Round-up on Higher Education Act Reauthorization (Dec. 13, 2017)

National Association of Independent Colleges and Universities weekly news “round-up” on the Reauthorization of the Higher Education Act. This week’s articles address the status of the Higher Education Act Reauthorization’s as it proceeds from committee to the House floor; the removal of an Obama-era rule on college credit hours; an op-ed by Rep. Brett Guthrie and Rep. Virginia Foxx, who each Chair the Committee on Education and the Workforce and who proposed reauthorizing the Higher Education Act; and the House Republicans’ push for a higher education overhaul in the new year. 

12/15/2017
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Endowments & Gifts; Tax; Government Relations; Authorizations & Regulations

Letter from Bipartisan Group of Lawmakers Urging Congress to Oppose a Proposed Tax on Private College and University Endowments (Dec. 13, 2017)

Letter from a group of nearly thirty bipartisan lawmakers expressing strong opposition to a provision under consideration by Congress to tax private college and university endowments. In their view, the proposal wrongly equates colleges and universities to private foundations, opens a pathway for future increase and expansion of the endowment tax to public colleges and universities, and jeopardizes need-based financial aid for college students, while generating less than two-tenths of one percent of the revenue needed for the tax bill. The letter closes by urging Congress to remove the tax on private college and university endowments, or alternatively, to provide these institutions with a credit for the financial aid they grant. 

12/15/2017
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Government Relations; Authorizations & Regulations

Letter from Thirty-Eight Higher Education Associations to the House of Representatives on the Promoting Real Opportunity, Success, and Prosperity through Education Reform Act (PROSPER) (Dec. 11, 2017)

Letter from the American Council on Education and thirty-seven other higher education associations to the House of Representatives expressing concern with provisions in the Promoting Real Opportunity, Success, and Prosperity through Education Reform Act (PROSPER). The letter identifies provisions that would undermine students’ access to affordable education and would weaken the federal government’s ability to prevent abuse in the federal aid system. Among the Bill’s proposals, the letter identifies of particular concern the elimination of in-school interest subsidies for undergraduate students, the elimination of grants under the Supplemental Educational Opportunity Grant program, the elimination of loan forgiveness in student loan programs, and the lack of safeguards to prevent federal funds from reaching non-eligible institutions through their partnerships with Title IV participants. The letter notes that due to the accelerated timeframe of the bill, there is insufficient understanding of the legislation’s full impact. The letter closes by affirming the various associations’ readiness to work with the legislature “to reduce cost, increase accountability, and promote innovation.” 

12/15/2017
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Government Relations; Authorizations & Regulations

U.S. Department of Education Announces Next Generation (Next Gen) Financial Services Environment (Nov. 29, 2017)

Announcement by the U.S. Department of Education’s Office of Federal Student Aid (FSA) to improve the delivery of federal student aid programs with significant technology and operational infrastructure improvements. FSA anticipates implementing these improvements in early 2018 through 2019. One highlight of the planned improvements includes launching a mobile platform in the spring of 2018 that will allow financial aid recipients to complete and submit their Free Application for Federal Student Aid (FAFSA) form on a mobile device. 

11/30/2017
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