New financial responsibility regulations included in the 2016 borrower defense to repayment regulatory package contain requirements that apply to all school sectors, including public institutions. These regulations are now effective, per court order, and recent Department of Education (ED) guidance reminds schools of upcoming financial responsibility reporting deadlines.
The 2016 Final Regulations included revisions to 668.171, specifying the standards institutions must meet to be deemed financially responsible. In 668.171(h), institutions are required to notify ED within specified timeframes for certain events, actions, or conditions, including debts, liabilities, and losses, which includes certain lawsuits brought against the institution. Because the regulations became effective at an unusual time of year, ED’s guidance stipulates that any required notifications must be made by May 14, 2019.
NASFAA encourages its members to work with institutional legal counsel and its business office to ensure compliance. The National Association of College and University Business Officers (NACUBO) has released an advisory to assist business office staff in complying with the new regulations.
Publication Date: 5/9/2019