1. Risk Sharing and Accountability
Core Concern Colleges and universities do not have enough “skin in the game” leaving tax payers to foot the bill for defaulted loans.
Replace cohort default rate with loan repayment rate
Calculated by program of study
Tighten rules on “earned aid” under R2T4 for withdrawn students, so schools bear more of the cost
Require schools to repay ED for some portion of defaulted loans

2. Return of Title IV Funds
Be Careful What You Ask for in Simplifying
Return of Title IV Funds
Aid earned by quarter of term
School returns unearned aid based on total disbursed, regardless of credit balance refunds
School may only recover 10% of amount returned from student
If student completes at least one modular course in term, not treated as withdrawal

3. In the Agencies

4. Administration Still Staffing Up
Department of Education
4 confirmed
6 nominations pending
5 no nomination yet
Undersecretary
Assistant Secretary for Postsecondary Education

5. Do Overs at ED
Title IX Sexual assault Gainful employment Borrower defense to repayment Direct loan servicing

6. State Authorization for Distance Education
Institution offering distance education must:
Be authorized in each state in which it enrolls students if state requires authorization
Document state process for resolving student complaints
Provide disclosures for programs offered solely through distance education
State reciprocity agreements (SARA) (but confusingly…)
Effective July 1, 2018

7. State Authorization for Foreign Locations
Additional location/branch campus outside U.S.
Must be authorized by “appropriate government agency” in host country
If at least half of an educational program is offered, it must be
Approved by institution’s accrediting agency
Reported to the state where the institution’s main campus is located
Effective July 1, 2018

9. myStudentAid Mobile App to Facilitate…
Choosing a school
Understanding aid options
Applying for aid
Receiving aid
Managing loan account
Making payments on loans
Resolving issues
And more…

10. myMoney Solicitation for pilot coming soon Integral “payment vehicle”
No fees to student or school
Available to anyone who completes FAFSA
Functions as bank account, including check writing capability
Schools would load credit balances to account
Funds could come from family or other sources as well
Possible warnings, controls, rewards, etc.