Advice for Maintaining Compliance with
New Federal Program Integrity Regulations

Recently, DETC interviewed representatives from several of its member institutions to collect and share with Washington Memo readers compliance tips on new Department of Education (DoE) Program Integrity regulations. (Editor’s note: These institutions participate in Federal Student Aid programs, and thus are subject to certain federal regulations for participating in Title IV funding. The majority of integrity rules impact all institutions. Therefore it is important to understand how different regulations apply to your institution.)

Q: Can you share with Washington Memo readers any “tips of the trade” on how your institution has approached the complex task of complying with the Federal Program Integrity Regulations, i.e., Gainful Employment, State Authorization, disclosures that must be made, etc.?

The central starting point for understanding federal regulations  is the Federal Register published October 29, 2010 and  DoE Dear Colleague letters periodically published. DoE sourced documents found on the DoE and Information for Financial Aid Professionals (IFAP) websites are very helpful. The IFAP Gainful Employment frequently asked questions page is also a good resource..

Getting to know the DoE’s language is also very helpful. This includes understanding the exact definitions of gainful employment, state authorizations, nexus, physical presence, Classification of Instructional Programs (CIP) code, Standard Occupational Classification (SOC) Code, and how CIP and SOC codes align to occupational profiles found on the US Department of Labor’s Occupational Network (O*NET).

—Dr. Karen J. Smith, Vice President for Academic Affairs & Administration at Columbia Southern University (CSU)

There are two online resources that have helped our institution better understand the new gainful employment rules:

1. An ACE guide of which programs must lead to gainful employment; and
2. an NASFAA-compiled list of which new programs require DoE approval.

—Mr. Avi Katz, President of the National Paralegal College

Q: In your institution’s good faith efforts to comply with State Authorization regulations—currently on hold following a Court decision to strike them on a technicality—what feedback did you receive from your outreach effort in contacting State Regulators, and what can we all expect from State Regulators going forward, now that a Court has suspended the regulation?

The States are understaffed and challenged to address each phone call, email or letter. That being said, the States have been responsive, patient to questions, and have evidenced by their support an interest in helping institutions succeed.

A strategy our institution has found helpful is to send each state a letter of intent to comply. A compliance file was also initiated by state to demonstrate under audit our “good faith” attempt to comply with regulations. Look carefully at the language of each state’s licensure, registration, or no action needed information to determine how your institution fits into the equation. Some states will begin a clock to licensure completion on your first letter of inquiry. Be sure that you are able to commit before initiating activity with these states. However, we have found that if you need more time, the states will assist with the deadline.

If your home state requires specific documents, such as faculty qualification forms, ask the state where making application if they will accept your current document. To date, no state has rejected the document we have in place. Also, document every letter, phone conversation, email, and inquiry. This demonstrates due diligence to comply.

—Dr. Karen J. Smith, Vice President for Academic Affairs & Administration at Columbia Southern University (CSU)

For institutions undergoing the process of contacting state regulators, the first thing to do is to focus on understanding each state’s definition of physical presence. Secondly, it almost always comes down to asking a few critical questions by state:

1. Do we have physical presence?
2. Can we offer online courses/degrees? Can we market/advertise in this state? (And, for the University of St. Augustine specifically, are internships considered physical presence?)

Once we have those answers we determine the process for making sure we are able to meet each state’s eligibility requirements.

—Dr. Cindy Mathena, Dean of Post-Professional Studies at the University of St. Augustine for Health Sciences

Q: What impact will the ED Program Integrity regulations have on your institution’s approach to marketing?

DoE is concerned with integrity and clear demonstration that academic programs are producing intended learning outcomes and tied to gainful employment in a recognized occupation. To that end, it is important to have clear, unambiguous disclosure statements on [the institution’s] website home page as well as each program’s splash page.

Also, ensure that any advertising flyers, billboards, and other marketing collateral note where gainful employment, cost of attendance, median loan debt, on-time graduation rate, and job placement rate information can be found. This information has to be tied to programs.

—Dr. Karen J. Smith, Vice President for Academic Affairs & Administration at Columbia Southern University (CSU)

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