Statement of Sameer Gadkaree
“The Biden-Harris Administration has taken another significant step toward protecting students with today’s announcement of new regulations. These regulations will provide a safeguard from institutions that have a significant risk of closure, as well as from colleges that are not equipped to deliver on the promises they make about students’ career goals. They will also ensure more students can access college credits they have earned.
“Recent years have shown the systemic risk of institutions that mismanage their finances while relying on federal financial aid dollars as their backstop. Such institutions can close with little notice, leaving students with little to show for their investment. These regulations establish key consumer protections for students that complement the new 90/10 rule, as well as recently finalized rules on Gainful Employment and Financial Value Transparency. We appreciate the strong regulations to prevent institutions from withholding course credits from student transcripts – an issue for which TICAS has long advocated.
“To arrive at this latest regulatory package, the Department spent more than two years engaged in negotiations and gathering public input, including from numerous college representatives and associations. We are encouraged by the Administration’s ongoing efforts to protect the interests of students and public investment in financial aid programs while reflecting the extensive feedback they received.
“This action is a win for students and the public interest. We commend the Biden-Harris Administration and the Department of Education for their commitment to protecting students and taxpayers from fraud, waste, and abuse. We look forward to these protections taking effect next year.”