Change has been a main focus for the Obama administration from the start of his 2008 campaign, and after Tuesday night’s State of the Union Address it is apparent that change is on the horizon for the for-profit education sector. As the status quo currently stands, access to federal aid is granted through individual accrediting organizations, each holding a separate set of standards and requirements for qualification. web service security . As stated in the supplemental document released by the White House following the address, “the government currently provides more than $150 billion each year in direct loan and grant aid for America’s students.” With the current economic restraints, the administration is going to tighten what some colleges already consider strict regulations to qualify for Title IV funds.
The Obama administration’s proposed changes to the status quo
The President will call on Congress to consider value, affordability, and student outcomes in making determinations about which colleges and universities receive access to federal student aid, either by incorporating measures of value and affordability into the existing accreditation system; or by establishing a new, alternative system of accreditation that would provide pathways for higher education models and colleges to receive federal student aid based on performance and results.
The administration also proposed a new College Scorecard that will require colleges to provide clear and accurate information on transparent levels that have not been reached in past years. This scorecard will in turn provide prospective students another tool as they search for higher education.
What this means for Compliance
For 2013 compliance is going to take a leading role as regulations in higher education are released throughout the remainder of the year. With the outbreak of compliance in 2012 for-profit colleges will have to once again shape up their advertising efforts to ensure Title IV funding.
For more Information and the Full Report: