Title IV

News & Analysis as of

"Trump Expected to Alter Labor Laws, Policies"

Editor’s note: This article was updated on February 1, 2017, to reflect new developments. While President Donald Trump has not discussed in detail how he plans to address labor and employment issues, he likely will...more

[Webinar] New Audit Guidelines for Higher Educational Institutions - February 1st, 11:00am CT

On Wednesday, February 1, Mike Wherry, a CPA with 25 years of experience in the public sector to postsecondary schools will join Aaron Lacey in presenting a webinar focusing on the four main changes that were issued in the...more

Second Circuit Adopts Narrow Interpretation of Trust Indenture Act Provision Intended to Protect Bondholders

On January 17, the US Court of Appeals for the Second Circuit rendered a much anticipated decision in Marblegate Asset Management, LLC v. Education Management Corp., No. 15-2124-cv(L), 15-2141-cv(CON), reversing the Southern...more

Out-of-Court Restructuring Transactions: What’s Old Is New Again after Marblegate

Second Circuit’s reversal of controversial restructuring decision may boost confidence among distressed bond issuers. The recent decision of the United States Court of Appeals for the Second Circuit in Marblegate has...more

U.S. Department of Education Issues Final Regulations Regarding Teacher Preparation Programs

On October 31, 2016, the U.S. Department of Education (ED) published final regulations regarding teacher preparation programs, implementing the accountability provisions of Title II of the Higher Education Act (HEA) and...more

Seventh Circuit Applies Escobar Standard to Once Again Reject False Claims Act Liability Based on Implied False Certification...

On October 24, 2016, the Seventh Circuit applied the standard announced by the Supreme Court in United Health Services, Inc. v. United States ex rel. Escobar, 136 S. Ct. 1989 (2016), for False Claims Act (“FCA”) liability...more

Universities Are Prime Targets for False Claims Act Liability

Colleges and universities receive billions of dollars in federal funds, whether through research grants or student financial aid, or even by billing Medicare or Medicaid for services rendered at academic medical centers. As a...more

Seventh Circuit Revisits Sanford-Brown, Rejects Implied Certification Claim

In one of the few cases to apply the Supreme Court’s recent decision in Universal Health Services v. Escobar, the Seventh Circuit recently revisited and affirmed its prior rejection of an implied certification claim under the...more

Alert: All Institutions Face New Risks Under ED’s Final Borrower Defense Rule

In this, the first in a series of client alerts that will explain the workings of the new Borrower Defense to Repayment Rule (BDTR), we explore what promises to be a series of rules, procedures and interpretations to be...more

Dept. of Ed. Bans Pre-Dispute Arbitration Agreements by Title IV Schools

The U.S. Department of Education has issued a final rule that broadly addresses the ability of a student to assert a school's misconduct as a defense to repayment of a federal student loan. The final rule includes a ban on...more

Statements Regarding Title IV Compliance Can Provide Basis for “Implied Certification” Theory

Title IV’s incentive compensation ban (“ICB”) prohibits higher education institutions from paying bonuses or commissions to student recruiters. In a recent decision, the U.S. District Court for the Northern District of...more

Alert: ED's Proposed Rules for Online Learning Present New Compliance Challenges

On Monday, July 25, the US Department of Education (ED or the Department) formally released a Notice of Proposed Rulemaking (NPRM) to amend its current state authorization regulations, particularly with respect to distance...more

Ban Proposed on Mandatory Pre-Dispute Arbitration Agreements by Schools Receiving Title IV Aid for Student Borrowers

The U.S. Department of Education has issued a proposed rule that includes a ban on mandatory pre-dispute arbitration agreements by schools receiving Title IV assistance under the Higher Education Act (HEA) and a new federal...more

OTC Markets, Inc. Asks SEC To Open Regulation A+ to Reporting Issuers

On June 6, 2016, the OTC Markets Group Inc., the entity operating three major over-the-counter marketplaces (“OTC”), submitted a rulemaking petition to the SEC. The petition asked the SEC to amend Regulation A+ to allow...more

Department of Education Cash Management Regulations To Become Effective

Final regulations promulgated last year by the United States Department of Education (the “Department”) become effective July 1, 2016. The Department stated that the purpose of the regulations is “to address recent changes in...more

Alert: ED to Issue First Set of Gainful Employment Rates in January

The US Department of Education just announced its intent to issue the first set of official Debt to Earnings Rates ("D/E Rates") under the Gainful Employment Rule ("GE Rule") in January 2017. That timing would be consistent...more

Dept. of Education considering ban on use of arbitration agreements by schools receiving Title IV assistance

We recently blogged about Public Citizen, Inc.’s petition to the Department of Education requesting the Department to adopt a rule requiring schools to agree, as a condition of receiving Title IV assistance under the Higher...more

Public Citizen petitions Dept. of Education to ban use of arbitration agreements by schools receiving Title IV assistance

Public Citizen, Inc. has sent a petition to the Department of Education requesting the Department to adopt a rule that requires schools to agree, as a condition of receiving Title IV assistance under the Higher Education Act...more

Alert: Timeline for First Set of Gainful Employment Rates Slips Further

The US Department of Education has announced another delay in the distribution of the Completer Lists for Gainful Employment programs until Spring 2016, which is bound to push back the date for ED to issue the first set of...more

University Faces Action for Alleged Deceptive Advertising of Graduates' Employment, Earning Prospects

The Federal Trade Commission (FTC) has filed a complaint in a California federal district court against the operators of DeVry University in which it alleges that DeVry violated the FTC Act by misrepresenting the employment...more

New Regs Will Change How Colleges Offer Bank Accounts to Students

On October 30, 2015, the Department of Education issued regulations to impose requirements on the marketing and terms of deposit and prepaid accounts offered to students at educational institutions that participate in Federal...more

Education Department Reverses Course on Prohibition Against Incentive Compensation Based on Retention and Graduation; Clears Way...

On November 27, 2015, the United States Department of Education announced a reversal of its previously existing prohibition against the payment of incentive compensation based on students’ program completion or graduation...more

Alert: ED Adopts Changes to Clock and Credit Hour Rules

Earlier this month, the US Department of Education ("ED" or the "Department") announced a number of changes to the so-called "cash management" regulations that govern institutional arrangements with financial account...more

Employee Benefits Developments - October 2015

The Internal Revenue Service (IRS), consistent with prior regulations from the Department of Health and Human Resources (HHS), issued supplemental proposed regulations requiring employer sponsored health plans to provide...more

Alert: New Proposal Offers Limited Access to Federal Student Aid for Alternative Providers

On October 15, 2015, the US Department of Education ("ED") issued a long-awaited notice announcing an "Experimental Sites Initiative" ("ESI") to permit limited access to federal loan and grant programs for students enrolled...more

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