Student Defense Statement on the Dept. of Education’s Rollback of Signature Guidance on Federal Student Aid Program Participation Agreements

FOR IMMEDIATE RELEASE

January 21, 2025

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press@defendstudents.org

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Student Defense Statement on the Dept. of Education’s Rollback of Signature Guidance on Federal Student Aid Program Participation Agreements

Student Defense Vice President and Chief Counsel Dan Zibel issued a statement today on the Department of Education’s (ED) decision to stop enforcing regulations designed to help hold corporate owners accountable for financial losses to the government caused by institutions of higher education participating in the student aid programs. Although the regulation remains, ED’s non-enforcement policy came as part of a negotiated settlement agreement with an institution participating in Title IV.

“Time and again, we have seen examples of school owners profiting off higher education, with taxpayers footing the bill for massive losses to the federal government. But when the people and companies who own or control institutions are forced to sign an agreement to follow federal financial aid laws, and acknowledge their own skin in the game, they’re less likely to defraud students. Not only is this settlement an end-around the legally required procedures, but it is sorely misguided and makes it harder, not easier, for the Department to protect students and taxpayers.”