The Biden-Harris Administration has introduced final regulations aimed at bolstering accountability in higher education institutions and enhancing protections for student borrowers.
These new rules, set to take effect on July 1, 2024, address concerns about abrupt college closures and the consequences faced by students and taxpayers. They restrict colleges from withholding transcripts for federally funded courses, ensure clear communication of financial aid information to students, and allow the Department of Education to act swiftly in cases where colleges exhibit financial risk, among other measures. This move aligns with President Biden’s commitment to make college more affordable, hold colleges accountable, and protect students and taxpayers.
U.S. Secretary of Education Miguel Cardona emphasized the importance of fixing a system that has left many students in debt and unable to complete their education, particularly after sudden college closures. The final regulations address four key areas, including financial responsibility, administrative capability, certification procedures, and access to federal aid for students without high school diplomas. These changes are seen as crucial in preventing risky behavior by institutions and protecting taxpayers from the costs associated with college closures. This development is part of the administration’s broader efforts to ensure that colleges prioritize students and taxpayers while providing valuable education and skills.