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ARTICLE · 12 JUNE 2024

New U.S. Education Department Rules Will Affect University Mergers, Acquisitions

Holland & Knight
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The U.S. Department of Education (ED) finalized new regulations last year that will take effect on July 1, 2024...

United StatesConsumer Protection
Nancy Anderson
Nancy Anderson
Maddie Fenton
Maddie Fenton
Paul Lannon
Paul Lannon
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Highlights

  • The U.S. Department of Education has finalized new regulations effective July 1, 2024, impacting mergers and acquisitions involving higher education institutions.
  • These changes include new financial tests for new owners and institutions and stricter conditions for financial responsibility following a change in control.
  • The new regulations also formalize the requirement for controlling owners to cosign an institution's Title IV Program Participation Agreement, imposing joint and several liability on new owners for federal student aid liabilities.

The U.S. Department of Education (ED) finalized new regulations last year that will take effect on July 1, 2024, directly impacting mergers and acquisitions involving higher education institutions. Specifically, the regulatory package will 1) adjust the minimum financial requirements in a change in control transaction and 2) identify the circumstances in which new owners must assume joint and

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