SARA: DEPARTMENT OF EDUCATION NEGOTIATED RULEMAKING UPDATE
October 26, 2023 Update and Webinar Information
On Tuesday October 24, 2023, the U.S. Department of Education released final rules that came out of the spring 2022 negotiated rulemaking sessions. The regulations will go into effect July 1, 2024.
The rule that may directly impact SARA will require that institutions certify that if they are operating through distance education they will abide by any state laws related to the closure of postsecondary institutions.
NC-SARA is engaging a broad group of stakeholders to analyze the potential impact on SARA-participating institutions and member states. We will share more information by email, on our SARA Call to Action webpage, and by hosting an informational webinar on November 7, 2023, 11:30 am – 12:30 pm Mountain Time.
The final language (Pages 624-625) § 668.14(b)(32):
(32) In each State in which: the institution is located; students enrolled by the institution in distance education or correspondence courses are located, as determined at the time of initial enrollment in accordance with 34 CFR 600.9(c)(2); or for the purposes of paragraphs (b)(32)(i) and (ii) of this section, each student who enrolls in a program on or after July 1, 2024, and attests that they intend to seek employment, the institution must determine that each program eligible for title IV, HEA program funds—
(iii) complies with all State laws related to closure, including record retention, teach-out plans or agreements, and tuition recovery funds or surety bonds.
June 13, 2023 Update: NC-SARA's Public Comment Letter
On Friday May 19, 2023, the U.S. Department of Education released proposed regulations coming out of the spring 2022 negotiated rulemaking sessions. Should these regulations be finalized, there could be a significant impact on reciprocity for SARA-participating institutions and SARA member states.
NC-SARA is submitting a public comment letter on behalf of the SARA community to the U.S. Department of Education regarding the potential implications of these draft regulations.
May 30, 2023 Update: Explanatory Memo & Informational Webinar
The SARA community has prepared a brief memo explaining the potential implications of the draft regulations that the U.S. Department of Education released on May 19, 2023. Should these regulations be finalized, there will be an impact on reciprocity for SARA-participating institutions and SARA member states.
- Read the explanatory memo
- Informational Webinar (June 1, 2023)
- Share your comments with the Department of Education by June 20, 2023
May 19, 2023 Update & Webinar Information
On Friday May 19, 2023, the U.S. Department of Education released proposed regulations coming out of the spring 2022 negotiated rulemaking sessions. Language that was proposed that would potentially impact State Authorization Reciprocity Agreements (SARA) has been modified since then and now reads:
(32) In each State in which the institution is located or in which students enrolled by the institution are located, as determined at the time of initial enrollment in accordance with 34 CFR 600.9(c)(2), the institution must determine that each program eligible for title IV, HEA program funds
(iii) Complies with all State consumer protection laws related to closure, recruitment, and misrepresentations, including both generally applicable State laws and those specific to educational institutions;
The public comment period on these proposed regulations is open now; comments are due on or before June 20, 2023.
NC-SARA is facilitating a broad group of stakeholders to analyze the potential impact on SARA-participating institutions and member states. We will share more information by email, on our Call to Action webpage, and by hosting an informational webinar soon. Please stay tuned!
REGISTER TO ATTEND INFORMATIONAL WEBINAR ON JUNE 1, 2023 - Registration Closed
April 24, 2023 Update
NC-SARA staff in partnership with NC-SARA Board's Consumer Protection Taskforce have been monitoring the evolving situation with the Department of Education regarding Negotiated Rulemaking and potential regulatory changes impacting SARA. On April 12, 2023, NC-SARA Board Member Eduardo Ochoa shared comments on behalf of the SARA community during the Department of Education's public hearings related to negotiated rulemaking. NC-SARA has also submitted a letter regarding the Department's Announcement of Intent to Establish Negotiated Rulemaking Committee, Hold Public Hearings, and Seek Comments on Regulatory Topics.
NC-SARA's request made in both the public hearings and the letter is as follows:
- We respectfully request that ED not move forward with changes discussed during the 2022 negotiated rulemaking sessions related to “Certification Procedures” that would impact state authorization reciprocity, and thus State Authorization Reciprocity Agreements (SARA). Should ED decide to move forward with changes that would impact state authorization reciprocity, we request that such changes be addressed as a part of the upcoming negotiated rulemaking.
June 22, 2022 Update
On the afternoon of June 21, 2022, the Office of Information and Regulatory Affairs within the Office of Management and Budget posted “The 2022 Spring Agenda," which provided an update on where all of the regulatory agencies are in the development of rules related to the agency. As noted in the Agency Rule List for the Department of Education, the Administration stated that several of the 2021-2022 Federal Negotiated Rulemaking issues will not be completed this year as originally anticipated. This includes Certification Procedures, which is where the language potentially impacting the efficacy of SARA exists. According to this post, the posting date for public comment will not be until April 2023. This means the earliest this rule could be applicable is July 2024. This news does not mean that SARA will not ultimately be impacted, but rather that any potential impact is being delayed.
Since March 2022, NC-SARA has shared with the Department our research and analysis about the potential impact of the language that was discussed during Negotiated Rulemaking, and we have met with Undersecretary Kvaal and staff three times to discuss our concerns. We are hopeful that there continues to be the opportunity to work together on a common ground approach as we share with the Department the commitment to strong postsecondary student consumer protections.
NC-SARA will continue to monitor the situation as it evolves, and we are also preparing for another potential Call to Action next spring. We will keep our website updated, so please stay tuned, and please be on the ready; we may very well seek your help again in protecting the gains we’ve all made on behalf of students with access to quality interstate distance education at the more than 2,300 institutions that participate in SARA.
More detailed information about this situation is shared below.
April 4, 2022 Update
What Is the Concern?
During the final week of the Department of Education’s Negotiated Rulemaking process for 2022 (March 14-18, 2022), Issue Paper #6 (Certification Procedures) was discussed that includes proposed language that could potentially directly impact and drastically limit the application of SARA.
- See March 8, 2022 Issue Paper 6: Certification Procedures – Session 3 regarding § 668.14 Program Participation Agreement, Subsection (32)(iii) (see page 7)
The Department needed to have unanimous agreement among the negotiators to make any proposed changes final. The committee did not come to consensus on the proposed language in Issue Paper #6. At this point, the next version will be drafted by the Department, and that may still include this language.
What Is the Proposed Language?
The proposed language in Subsection (32)(iii) is as follows:
(iii) Complies with all State consumer protection laws, including both generally applicable State laws and those specific to educational institutions, except where State requirements for obtaining authorization are inapplicable pursuant to a State authorization reciprocity agreement.
The specific language “for obtaining authorization,” as discussed by the negotiators, would mean that an institution could gain initial approval to participate and pay a single fee (this would be the only part of reciprocity remaining), but after that, the other benefits of reciprocity would end. The consistent set of enhanced student consumer protections afforded by SARA – arguably the most important part of reciprocity through SARA – could potentially go away.
In a nutshell, this means that the gains of SARA could be nullified, and we could move backwards to the patchwork of state authorization distance education regulations that existed before SARA.
Where Did This Concern Come From?
Some of the negotiators in the Negotiated Rulemaking process expressed concern about their perceptions of SARA’s limits on education consumer protection. Their memo to their fellow committee members included language, which was then added by the Department, to ensure that SARA would no longer provide a common set of higher consumer protections for all SARA member states and would instead require all institutions to adhere to the differing consumer protections of every individual state.
At this point, there is a lack of evidence to support the concern that institutions would relocate to states with lower levels of student consumer protection. Furthermore, nearly all SARA member states require some combination of outcomes reporting, onsite visits, refund policies, surety bonds, student tuition recovery funds, closure requirements.
Some are interpreting this new potential federal regulatory language to mean that SARA’s reciprocity would not substantially change. SARA leaders are seeking clarification from the U.S. Department of Education to learn specifically what the intent and perceived results of this language would be.
What is NC-SARA Doing?
- Closely monitoring the emerging situation with the Department through convenings with the many supportive stakeholder groups and individuals, including the regional compacts, multiple higher education organizations, and policy organizations.
- Developing various scenarios and response strategies in partnership with these groups to educate and coalesce an approach should the language move forward.
- Preparing and extending outreach, educational activities, and resources in collaboration with these groups.
What Can You Do?
Stay tuned! We will continue to post updates to this page as we know more.
Source Documents and Department of Education Resources About This Issue
- Issue Paper 6: Certification Procedures – Session 3 regarding § 668.14 Program Participation Agreement, Subsection (32)(iii) (see page 7)
- Certification Procedure Memo About State Consumer Protection Laws: Memo of March 16, 2022, presented to the Negotiated Rulemaking Committee that articulates the rationale for this proposed language.
About SARA and NC-SARA
- SARA: Promoting Postsecondary Access and Quality
- SARA: Protecting Students and Demanding Quality
- Institution Participation & Renewal Requirements
- SARA Member State Requirements and Information
- SARA-Participating Institution and State Directory
NC-SARA will continue to update information on this webpage. Need additional assistance or information from NC-SARA? Please email email@example.com