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ARTICLE · 19 JUNE 2024

ED's New Financial Responsibility Rules Deserve Attention (Video)

Thompson Coburn LLP
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The U.S. Department of Education's new financial responsibility rules take effect July 1, 2024. These rules are part of a sweeping set of regulations that become effective the same day and cover financial value...

United StatesConsumer Protection
Aaron D. Lacey
Aaron D. Lacey
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The U.S. Department of Education's new financial responsibility rules take effect July 1, 2024. These rules are part of a sweeping set of regulations that become effective the same day and cover financial value transparency and gainful employment, professional licensure programs, the bare minimum rule, transcript withholding, and diploma verification, among many other topics.

With so much on the agenda, the new financial responsibility rules have garnered relatively little discussion. They deserve attention. In particular, the new rules revise and expand the reporting obligations at 34 CFR § 668.171, which require institutions to report certain "triggering events" to the Department. These reporting requirements are meant to alert the agency that an institution "may not be able to meet its financial responsibilities." If an institution fails to report a triggering event within the requisite timeframe, the Department may take administrative action, up to

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