Are You Ready for the New Financial Value Transparency/Gainful Employment (FVT/GE) Requirements?
By: Robert “Bob” Covey-Robbins, FAS Senior Consultant
Of course, the current focus of schools is obtaining ISIR data, and awarding students for the upcoming academic year. The delays in processing activities may result in many schools finding it hard-pressed to meet the first of the new Financial Value Transparency/Gainful Employment (FVT/GE) requirements.
If you’ve not had an opportunity to review the new requirements yet, the following are some things you should know. Please note that this is very high-level information and you will want to dive into more specific detail.
- All proprietary schools, as well as non-profit and public institutions that have any non-degree programs, such as certificate or diploma programs, are impacted. Additionally, nearly all schools will have to provide data on programs and students in most Title IV-eligible programs.
- The Department of Education (DOE) will be determining two measures: a Debt to Earnings (D/E) Rate and an Earnings Premium (EP).
- The DOE will be creating a website that will publish information on schools’ academic programs.
- Based on program D/E and EP measures, some prospective students will be required to acknowledge that they have reviewed the information through the DOE website before the school may enroll the student.
- If certain thresholds are not met, some programs will lose Title IV eligibility.
- If the DOE determines that an academic program may become ineligible for Title IV funds, the school will be required to provide a warning to students who enroll in the program.
Data used to determine D/E Rate and EP measures will come from various sources, but a large portion will be provided by schools through new data reporting requirements. The deadline for the first report of students who completed a program was originally set for July 31, 2024. The DOE has delayed the first report until October 1, 2024. October 1, 2024 is also the deadline for reporting data for currently enrolled students. The DOE plans to provide the ability for schools to begin submitting data in NSLDS on July 1, 2024.
Schools will be required to report data for academic programs and students in nearly all Title IV-eligible programs. Depending on the type of program, the school may be required to provide data for several prior award years, or the school may opt for Transitional Reporting, which will allow the school to report for the 2 or 4 most recently completed years, depending on the number of completers in the programs. The transitional reporting data would then be used for the next 6 years.
The DOE issued a Comment Request regarding FVT/GE reporting requirements in the February 22, 2024 Federal Register. The comment period ends April 22, 2024.
Compliance with the new FVT/GE requirements will likely require careful planning and a collaborative effort between multiple departments, so if you have not begun preparing, you may want to start working it into your busy schedule soon.
About FAS
Financial Aid Services (FAS) has served higher education for over 30 years. Located in Atlanta, Georgia, FAS provides consulting, staffing, processing, and assessment services to assist institutions with improving operational efficiency, student satisfaction, and regulatory compliance in financial aid and student business services. FAS’ accomplished team averages 28 years of experience and has a combined 1,600 years of higher education experience. With clients in 49 states, FAS has successfully served over 1,800 institutions nationwide. The Company’s extensive experience combined with industry-leading expertise and focus on superior client outcomes, enables FAS to deliver lasting results to its clients and the students they serve. Visit www.FinancialAidServices.org for more information.
Contact FAS today for a quick consultation on how we can help you discover solutions tailored to your unique needs. Reach out at 770.988.9447 or via email at info@FinancialAidServices.org.We look forward to connecting with institutions ready to overcome challenges and elevate their financial aid and student business services.
