Only a portion of postsecondary institutions are likely impacted by the regulation, but for those that could be affected, compliance is important for continued Title IV funding.
In a May 6 Electronic Announcement, The Department of Education reminded schools about the regulation, effective last July, that requires schools to notify them of a change in ownership (CIO).
The Department said the regulation requires schools notify the Department at least 90 days in advance of a proposed CIO. An additional regulation requires schools to notify enrolled and prospective students of the proposed change at least 90 days in advance of a proposed CIO.
“The purpose of the 90-day advance notice is to prevent a lapse in Title IV funding which could result from incomplete or incorrect documentation being submitted in the required timeframes following a CIO, and to ensure that current and prospective students are aware of the planned change,” the Department said in the announcement.
The announcement provides updated guidance on the temporary process schools must follow to provide the 90-day notification and replaces earlier guidance. The process includes notifying the Department of the CIO via the Electronic Application for Approval to Participate in the Federal Student Aid Programs (E-App); submission of state authorization and accrediting documents; copies of audited financial statements; and a copy of the student notification that was provided to students.
Questions concerning the 90-day notification requirement should be sent to the institution’s School Participation Division using the contact information on Federal Student Aid’s Partner Connect website.
