New Financial Responsibility and Certification Procedures FAQs

Career Education Colleges and Universities (CECU)

May 20, 2024

The Department of Education posted a new Electronic Announcement with FAQs for Financial Responsibility and Certification Procedures to answer the many policy questions institutions have regarding these regulations, which are set to go into effect on July 1, 2024. The Department will release more documentation on its Office of Postsecondary Education Guidance Documents page. The page indicates that FAQs regarding GE Program Length Limitations are forthcoming.

The FAQs regarding Certification Procedures are divided into three categories: Gainful Employment Program Hours (GEPH), Licensure and Disclosure Requirements (LDR), and Transcript Withholding (TW). Several questions under GEPH have to do with accreditation, like the one below:

Question: What happens if a State’s licensure requirement is lower than the minimum number of hours required by an institution’s accrediting agency? For example, if the minimum number of credits required by the State is 500 hours but the accrediting agency requires 600 hours for the same program, must the school then limit the program to the minimum required by the State even if it means the program loses its accreditation and, therefore, it’s Title IV eligibility?

Answer: As stated in 34 CFR 668.14(b)(26)(ii)(A), the State’s minimum number of hours required for training in the recognized occupation is the limit for the number of hours a program may include. The regulations do not account for limitations set by the accrediting agency. In this case, either the accrediting agency or the State would need to change their requirements to meet the State’s minimum number of clock hours, credit hours, or the equivalent for the program to maintain its Title IV eligibility.

The Financial Responsibility FAQs list 24 questions and answers, including the one below.

Question: When must existing situations and conditions that were not considered reportable financial triggers prior to July 1, 2024, but are considered reportable financial triggers upon implementation of the revised financial responsibility regulations, be reported to the Department?

Answer: With both the mandatory and discretionary triggers in existence on July 1, 2024, that were not considered reportable triggers prior to that date but would be considered reportable upon implementation of the revised financial regulations, the institution must report any existing provisions within 21 days of the effective date of the regulation.

CECU is reviewing the FAQs and will provide additional analysis shortly.