U.S. Department of Education regulatory updates

The U.S. Department of Education has introduced several regulatory proposals and guidance updates affecting higher education and K-12 funding administration.

In higher education, the Department proposed an overhaul of the accreditation system governing over $100 billion in annual federal student aid. The plan aims to increase competition among accrediting agencies and provide colleges more flexibility in selecting accreditors. New requirements would mandate closer scrutiny of graduation rates, employment outcomes, and earnings. Additionally, the proposal includes provisions regarding transfer credits, requiring institutions to disclose credit acceptance policies before students make financial commitments. The rules also introduce assessments of academic freedom, requiring accreditors to evaluate whether schools apply such policies ‘applied consistently’ to faculty, and suggesting schools prioritize intellectual diversity.

Regarding administrative and K-12 matters, the Department proposed updates to the Education Department General Administrative Regulations (EDGAR) to move grant application notices to Grants.gov and revise discretionary grant criteria. While plans to shift K-12 formula fund distribution to different platforms were delayed in favor of the existing G5 system, the Student Privacy Policy Office issued new guidance. This notice reminds educational entities to respect parental rights under FERPA and PPRA, warning that failure to comply with parental notification and record review laws could lead to the loss of federal funding.