In what may be a little break for financial aid professionals, the Department of Education recently outlined how it will enforce – or may not enforce for now – some of the requirements used to determine an institution’s financial responsibility.
In a March 20 Electronic Announcement the Department provides clarification to regulatory changes under 34 CFR 668.23(d)(1), which were published on October 31, 2023. The amended regulations addressed the areas of financial responsibility, administrative capability, certification procedures, and ability to benefit.
In the announcement, the Department provides notice of its enforcement priorities and emphasizes that there will be stronger oversight in some areas, but they will be delaying enforcement of some of the newer requirements that may be challenging for schools to implement. Enforcement of many of the requirements will not be a priority for the Department until after July 1, 2027.
Provisions subject to delayed enforcement include:
- Fiscal-Year Alignment with IRS Annual Return(s)
- ED-Requested or ED-Required Fiscal Years
- Expanded Applicability of Financial Statements Submissions
- Required Disclosure When No Related-Party Transactions Exist
Individuals with questions about the information provided in the announcement may contact the Department by using the Contact Customer Support form in FSA’s Partner Connect Help Center and selecting “Policy Guidance” as the topic.
