Scientia Sit Potential: Is the Education Department’s Newest Financial Responsibility Reporting Rule a Source of Powerful Knowledge or a Bureaucratic Mess?

The U.S. Department of Education has a rule called the Financial Responsibility Reporting Rule. This rule sets out requirements for colleges and universities to report on their financial health. It could have an impact on Florida’s public colleges and universities. Title IV of the Higher Education Act allows students to get federal loans for college. If a school does something wrong, students can have their loans forgiven. In 2016, the Department of Education made a rule to protect students from schools that might be risky. The rule also made colleges disclose if students are struggling to repay their loans. The rule applies to all colleges, including public ones. If the university has to pay a debt or is sued in a lawsuit related to student loans or educational services, they have to report it to the secretary within 10 days. This includes lawsuits from government authorities and other lawsuits. They also have to report important dates in the legal process, like deadlines for motions, pre-trial conferences, and trial dates, within 10 days of those dates being set. If the court makes a decision on a motion, the university has to report that within 10 days too. If the university is in trouble with the government or its accrediting agency, it may have to make a plan for students to finish their education somewhere else. The university also has to report if it’s closing or has major problems with its license or meeting state requirements. If the university is put on probation or is in trouble with its accrediting agency, it has to tell the government about it.

Source: https://www.floridabar.org/the-florida-bar-journal/scientia-sit-potential-is-the-education-departments-newest-financial-responsibility-reporting-rule-a-source-of-powerful-knowledge-or-a-bureaucratic-mess/