Countdown to Compliance: Financial Value Transparency & Gainful Employment Reporting
Previously, Gainful Employment (GE) regulation requirements only applied to proprietary schools or designated GE programs. The new reality is that all institutions must report, with few exclusions.
How confident are you in your plan to meet the October 1st reporting deadline?
Financial Value Transparency (FVT) reporting is required for groups of related programs with at least 30 graduates in the past four years. The rule applies to both traditional career-focused programs (GE) and other academic programs (non-GE).
Ultimately, the new requirements benefit students by empowering them with essential data. This level of transparency helps students assess the actual value of their educational investment. Programs that fail to meet the Department’s metrics are at risk of losing Title IV funds.
The primary objectives of these new requirements are:
- Enhancing transparency on education program costs, financial aid, and outcomes
- Helping students assess the value of their educational investment
- Establishing accountability measures for institutions
Compliance Challenges with Limited Resources
Yes, these changes come at an inconvenient time, with the recent FAFSA rollout. But the risk of failing to address this topic far outweighs the challenges. Higher education leadership everywhere is looking for a solution that doesn’t compromise already scarce resources.
Financial Value Transparency (FVT) Reports
All institutions must report on their programs offered for undergraduate and some graduate programs. Despite all the information on this topic, getting started feels daunting. We’ve outlined key reports you can use through the National Student Loan Data System (NSLDS) to help you get started.
FVT/GE Program Enrollment Detail Report
This report provides a comprehensive list of all students and their certified program enrollment data as reported to NSLDS. It is beneficial for identifying students receiving Title IV aid for programs that require FVT/GE reporting.
FVT/GE Program Enrollment Summary Report
The FVT/GE Program Enrollment Summary Report provides an overview of enrollment data for all students in the program. This report helps institutions track overall compliance and meet reporting requirements.
Completers List
The Completers List contains information about students who have completed a GE or eligible non-GE program. This ensures that institutions maintain accurate records of program completions.
FVT/GE Students with No Program Enrollment Report
The NSLDS has launched this new report to help institutions identify students who might require extra reporting for compliance.
What’s Next for Your Institution?
Navigating the complexities of FVT/GE reporting can be daunting on the best day. It will be particularly challenging with limited resources and higher stakes than ever. Compliance isn’t just a one-person job; it requires a collective effort and a strategic plan.
- Create a Team: Form a task force involving multiple departments to manage compliance reporting.
- Plan for Training: Develop a comprehensive training plan for the reporting team.
- Document Processes: Establish a detailed process for documenting every action taken toward compliance.
- Define the Timeline: Create a workback schedule for the October 1 deadline.
- Pull Specific Reports: Start the assessment by pulling the key reports mentioned above.
Embracing Change for Better Outcomes
New regulations present a challenge and offer an opportunity to build transparency and trust in the financial aid process. Yet, today’s financial aid landscape is more complicated than ever,
- 51% of institutions are only somewhat confident that their team understands the state of regulations today.
- 69% of financial aid teams state that the biggest challenge they are facing is hiring qualified talent
- 56% of financial aid offices are operating at a reduced capacity.
Institutions are struggling to make the impact they want because the day-to-day operations and systems are riddled with blockers.
The bottom line? You don’t have to do it alone.
By leveraging expert financial aid consulting services, your team can confidently focus on serving students. If you need help with the new reporting rules, contact us to find out how we can assist with financial aid compliance.
