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Fifth Circuit Continues Nationwide Preliminary Injunction Against “Almost Certainly Unlawful” Borrower Defense Rule

On April 4, 2024, the U.S. Court of Appeals for the Fifth Circuit issued its opinion in CCST v. U.S. Dept. of Education, reversing the order of the U.S. District Court for the Western District of Texas, and granting a...more

Education Department Extends Gainful Employment Reporting Deadline, Publishes Milestones Schedule

On March 29, 2024, the U.S. Department of Education published an electronic announcement delaying the reporting deadline for institutional data related to the Gainful Employment (GE) and Financial Value Transparency (FVT)...more

Department of Education Proposes Stricter Gainful Employment Regulations

On May 19, 2023, the Department of Education (ED) published in the Federal Register proposed regulations concerning gainful employment (GE), threatening to cut off federal financial aid for approximately 1,800 career training...more

Evolving Legal Framework Regarding Transgender Students

On April 6, 2023, the U.S. Supreme Court and the U.S. Department of Education addressed the treatment of transgender students in sports. Specifically, in West Virginia, et al. v. B.P.J., by her next friend and mother,...more

Education Department Delays Sept. 1 Effective Date of Dear Colleague Letter on Third-Party Servicers

On April 11, 2023, the U.S. Department of Education announced in a blog post that it will delay the Sept. 1, 2023, effective date of its Dear Colleague Letter on third-party servicers and institutions (DCL). The new effective...more

U.S. Department of Education Launches Secret Shoppers Program to Investigate Colleges and Universities

Federal Student Aid’s Office of Enforcement announced a “secret shoppers” program as one of many tools to evaluate a college or university’s recruitment, enrollment, financial aid and other practices. The secret shoppers...more

Education Department to Hold Owners, Individuals, Board Members Liable for Higher Education Institutions

On March 2, 2023, the U.S. Department of Education announced it will hold individuals representing corporations or other legal entities, including a member of the board of directors or a chief executive officer, personally...more

Department of Education Guidance Expands Possible Liability for Private Companies That Contract With Higher Education Institutions

On Feb. 15, 2023, the U.S. Department of Education issued guidance that significantly expands the definition of “third-party servicer” to include services completed by many online program managers (OPMs) and entities...more

Recent Court Opinions Suggest Independent Schools May Be Subject to Title IX

Historically, most independent schools have not been subject to Title IX of the Education Amendments Act of 1972 because they do not accept federal funds. As a result, many independent schools carefully evaluate whether to...more

Department of Education to Hold Owners and Investors Liable for College and University Liabilities

On March 23, 2022, the U.S. Department of Education (ED) announced its intention to hold corporate owners, investors and controlling parties of private institutions of higher education directly liable for the school’s...more

Income Share Agreements – Risks, Rewards, and Regulators

An Income Share Agreement (ISA) is a contract in which a lender gives a student money for education, and in return, the student promises to pay the ISA-provider a fixed percentage of the student’s income for a set amount of...more

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