Tag: Financial Aid
Department of Education Updates 90/10 Guidance
Vanessa Agudelo, Kate Lee Carey and Rebecca Flake
On March 10, 2026, the Department of Education (ED) quietly updated its 90/10 Questions and Answers guidance that complements the 90/10 regulations at 34 CFR § 668.28. This rule mandates that proprietary institutions participating in the Federal Student Aid programs (FSA or Title IV) must generate at least 10% of their annual revenues from nonfederal student funding sources. The updated guidance, which crosses multiple Q&A entries, was not accompanied by any formal announcement, press release, or Electronic Announcement from ED. The changes generally reduce compliance burdens on proprietary institutions by narrowing the scope of prior guidance and rescinding language that ED now views as inconsistent with the regulatory text. The revisions touch on several topics, including institutional responsibility for identifying federal education assistance funds, the definition of “related” entities for purposes of grants and scholarships, and other aspects of the 90/10 calculation.
ACTS and IPEDS: Navigating the Federal Push for Admissions Transparency and the Looming Deadline for Data Submission
The federal government, in response to a presidential memoranda, “Ensuring Transparency in Higher Education Admissions,” and a corresponding directive from Education Secretary Linda McMahon, dated August 7, 2025, has added a new IPEDS (Integrated Postsecondary Education Data System) reporting requirement, the Admissions and Consumer Transparency Supplement (ACTS). This data must also be reported to the new ACTS Aggregator Tool, which will provide a college admission comparison interface for families.
From Degrees to Dollars: How Wages, Not Graduates or Colleges, Will Determine Federal Student Loan Access Across All Institutions
Vanessa Agudelo and Caitlyn Shelby
Earlier this month, the Department of Education (ED), in coordination with the Accountability in Higher Education and Access through Demand-driven Workforce Pell (AHEAD) committee, concluded its negotiated rulemaking session and reached the elusive “consensus” to implement the new Earnings Premium (EP) framework as established by the One Big Beautiful Bill (OB3).
ED Revises Its Interpretation of 90/10 Rule
Kate Lee Carey and Dan Shackelford
On July 7, 2025, ED published an interpretive rule significantly revising its position on how for-profit institutions calculate compliance under the Title IV regulations, specifically the “Non-Federal revenue (90/10)” regulations, commonly known as the “90/10 Rule.” Notably, ED will now permit revenue from distance education programs and unapproved locations to count toward the 10% nonfederal revenue requirement under the Higher Education Act (HEA), provided those programs meet statutory criteria. This stance signifies a meaningful shift from previous guidance and offers immediate regulatory relief for proprietary institutions, which may retroactively apply the new interpretation to their 90/10 calculations for prior fiscal years.
Big Beautiful Bill – Earnings Premium for Nonprofit and Public Universities
Jay Vaughan and Vanessa Agudelo
On July 4, President Donald Trump signed “The Act,” commonly referred to as the “One Big Beautiful Bill,” as part of the budget reconciliation process and, among other changes, amended the Higher Education Act of 1965. While the law includes a number of elements impacting higher education (such as endowment taxes and loan limits), one key change was the creation of the “earnings premium” (EP) metric to assess the effectiveness of degree programs at all universities receiving Title IV funds.
ED to Shut Down and Overhaul E-App System
Nancy Anderson and Rebecca Flake
The US Department of Education has announced that it will implement updates to its current E-App system.
ED Reinstates Title IV Eligibility to California Students
Nancy Anderson, Mike Goldstein and Paul Thompson
The Department of Education has withdrawn its directive to deny federal financial aid eligibility to California students enrolled in online courses offered by out-of-state public and nonprofit universities.
Department Announces California Residents at Out-of-State Public and Nonprofit Institutions Ineligible for Federal Student Aid
Nancy Anderson, Mike Goldstein and Paul Thompson
The Department of Education announced yesterday that California residents enrolled in distance education programs at out-of-state public and nonprofit institutions will be ineligible from receiving federal student aid.
Just in Time for Halloween: The Return of the Borrower Defense Rule of 2016
Kate Lee Carey, Jonathon Glass, Mike Goldstein and Vince Sampson
The Borrower Defense to Repayment Rule is back, thanks to a September 17 federal court order that overturned Secretary DeVos’ action suspending implementation of the existing rule, followed by the October 16 final order denying CAPPS’ request for injunctive relief.
Borrower Defense to Repayment: The Saga Continues
Jonathon Glass and Kate Lee Carey
The Department of Education has published a new notice of proposed rulemaking for the BDTR law. Comments on the proposed new rule are due August 30.
Cooley Team at NASFAA 2018
Marjorie Arrington, Pat Dickerson and Rebecca Flake
The 2018 NASFAA National Conference is June 24-27 in Austin, TX. The annual NASFAA conference brings together 2,500+ student aid professionals from across the nation. Members of the Cooley team will be presenting throughout the conference.
Another Disclosure Requirement for California Higher Education Institutions Signals an Accelerating State Role in Student Disclosure
Kate Lee Carey and Mike Goldstein
Beginning with the 2018-19 academic year, all higher education institutions in California, except the California Community College system, will have to provide their students an annual summary of their total borrowing to pursue their education and an estimate of their future monthly payments.