On July 1, a number of new federal regulations targeting postsecondary education institutions took effect, marking a significant shift towards enhanced oversight and accountability. These regulations are part of what the Education Department describes as “the most effective system ever” to monitor predatory and low-quality education providers. Key changes include increased oversight of postsecondary programs, identification of colleges at risk of closure, and new requirements for accessing federal financial aid.
Several of these new rules are currently facing legal challenges, and their future may depend on federal court interpretations and the upcoming presidential election. The regulations aim to ensure transparency and consumer protections for students by requiring universities to provide more detailed financial aid information and adequate career services. Additionally, benefits for student loan borrowers under a new income-driven repayment plan have been implemented.
One significant rule change is the expansion of overtime eligibility for lower-paid workers, which took effect alongside other federal changes. The minimum salary threshold for overtime eligibility has increased to $43,888. This means many employees in executive, administrative, or professional roles who previously weren't eligible for overtime pay can now qualify. The threshold is set to rise again in January 2025 to $58,656. This could impact thousands of employees on college campuses, potentially leading to pay raises or overtime pay for many, including admissions officers, counselors, and administrative staff. However, colleges and universities warn that these changes might result in increased tuition or layoffs.
The new regulations also include a ban on withholding student transcripts for unpaid debts, a practice that has prevented many students from transferring credits. This change is expected to benefit millions of students, making it easier for them to access their earned credits.
Furthermore, the regulations introduce stricter gainful-employment rules for for-profit colleges and nondegree programs, requiring them to demonstrate that their graduates can earn enough to repay their debts. These measures aim to protect students from programs that do not provide adequate financial returns on their educational investments.
Overall, these regulatory changes seek to enhance accountability, protect students, and ensure that educational institutions meet high standards of quality and transparency.
Read more at: www.insidehighered.com/news/government/student-aid-policy/2024/07/03/regs-banning-transcript-holds-expanding-overtime-now
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