New Rules on Inclusion of Books and Supplies in Tuition and Fee Charges Are Effective July 1
By Karen McCarthy, NASFAA Policy & Federal Relations Staff
Final rules that set the conditions under which an institution may include books and supplies in tuition and fees, for the purpose of crediting the student’s account, are effective July 1, 2016.
Under the rules, an institution may include the costs of books and supplies as part of tuition and fees, and use Title IV funds to cover those costs without obtaining authorization, if the institution:
- Has an arrangement with a book publisher or other entity that enables it to make those books or supplies available to students at below competitive market rates;
- Provides a way for a student to obtain those books and supplies by the seventh day of a payment period; and
- Has a policy under which the student may opt out of the way the institution provides for the student to obtain books and supplies under this provision.
Alternately, the institution may include books and supplies in tuition and fees, and use Title IV funds to pay for them without obtaining authorization, if:
- It documents on a current basis that the books or supplies, including digital or electronic course materials, are not available elsewhere or accessible by students enrolled in that program from sources other than those provided or authorized by the institution; or
- The institution demonstrates there is a compelling health or safety reason.
For additional information regarding these and other changes to the cash management regulations, please see the rules published in the October 30, 2015 Federal Register.
Publication Date: 4/25/2016