Is your Institution in Compliance with all of the FVT/ GE Requirements? Let ECM Help

Recent statistics show that only 74% of college graduates earn more than the typical high school graduate. The overwhelming majority of these graduates come from for-profit institutions. However, nearly 15% are from public institutions and 9% are from non-profit institutions. Given these facts, it's unsurprising that the Department of Education has updated some of its guidelines in order to help students make informed educational decisions. The new requirements will change financial aid compliance operations and create additional paperwork, but ECM stands ready to recommend the best practices for institutions to help financial aid directors meet student needs and regulatory requirements.

How can ECM Help with Compliance?

ECM is a financial aid servicer specializing in helping educational institutions stay in step with ever-changing regulatory requirements. Many of our staff members worked in financial aid departments before joining our team. We have the expertise and tools you need to stay compliant. We also have a full understanding of the many challenges you face in providing students with a quality education that will serve them well for life. Get in touch with us to find out how we can help you meet the new FVT/GE requirements to obtain or retain approval for Title IV funding.

What are the New Changes, and How Will They Impact Educational Institutions?

The Financial Value Transfer and Gainful Employment regulatory requirements apply to any educational institution that offers programs eligible for Title IV funding. Under these requirements, educational institutions will need to provide extensive data on individual students, program length, cost, and loans to the Department of Education. The DOE will then use the data to calculate debt-to-earning metrics and an earning premium metric. This will enable students to see the expected financial outcome of taking a particular course.

Educational institutions will be required to display these metrics on their websites. What's more, colleges and universities will need to inform students about programs that the Department of Education has classified as "high debt" or "low earnings" before students enroll in these programs. GE programs that don't meet the new requirements will no longer be eligible for Title IV funding.

What is the Deadline for Turning in Paperwork?

Educational institutions can start reporting data to the Department of Education on July 1, 2024. Institutions must submit their first reports by October 1, 2024. As student information changes as graduates complete or drop out of courses, institutions will need to send updated data to the DOE every year.

The deadline for acknowledgments and warning requirements is July 1, 2026. This is also the deadline for the establishment of the Department of Education's disclosure website.

Frequently Asked Questions

Click the link to access FVT/GE FAQs related to general information, debt-to-earnings rates, earnings premiums, warnings, disclosures and acknowledgments, and reporting requirements. As the regulatory landscape is continually evolving, it's important to stay up-to-date on current requirements to remain compliant with DOE stipulations.