Top 4 Takeaways from Recent Financial Aid Regulation Announcements

Over the last few months there have been a few key announcements worth mentioning to ensure you remain compliant. Following these will ensure compliance. Here are a few of the top takeaways from recent Department of Education updates.

1. SAIG Enrollment Agreement required - due to the new FTI process related to the FAFSA Simplification changes schools must sign a new SAIG enrollment agreement: The updated SAIG enrollment agreement, available on Oct. 23, 2023, mandates compliance with FTI protection from the U.S. Department of Education. The agreement emphasizes penalties for unauthorized FTI inspection or disclosure. Organizations must sign this agreement to access the new FTI-SAIG mailbox and 2024–25 ISIRs; non-signees will be denied ISIR access.
   
   
2. Reminder to view the Better FAFSA Better Future Webinar Series offered from over the last quarter with a new session 11/2 for users without an SSN: Better FAFSA® Better Future Webinar Series has been launched, aligning with the commitment to the FAFSA Simplification Act. Scheduled from June to July 2023, these live webinars will address forthcoming changes for the 2024–25 award year. No registration is needed, and sessions are first-come, first-served, with post-webinar recordings accessible.
   
   
3. Compliance with Change in Ownership requires at least 90 days in advance of change: As of July 1, 2023, schools are mandated to notify the Department of Education 90 days prior to a Change in Ownership (CIO) to ensure uninterrupted Title IV funding. To facilitate this, schools are required to submit the necessary documentation through the E-App and provide timely updates to enrolled and prospective students. An Electronic Announcement outlines the interim steps for the 90-day notification, including the submission of state authorization, accrediting documents, audited financial statements, and a student notification copy. While the regulation became effective on July 1, 2023, it's applicable to transactions closing from January 1, 2024 onwards. Transactions that concluded between July 1 and December 31, 2023 are not subject to the 90-day notice requirement.
   
   
4. Improving Income Driven Repayment Plans: The U.S. Department of Education (Department) designates a regulatory provision in its final rule related to income-driven repayment for early implementation. The Secretary is exercising his authority under section 482(c) of the HEA to designate an additional regulatory change made in that final rule for early implementation beginning on Oct. 23, 2023. The Secretary is designating for early implementation the change to the process for a borrower re-enrolling in the Revised Pay As You Earn (REPAYE) repayment plan, which is now also known as the Saving on a Valuable Education (SAVE) repayment plan, after previously being enrolled in a different plan.

Of course, these are just a few highlights of information over the last few months. Let our financial aid and compliance experts help your department boost its efforts. Contact us today to explore options. Get FA Solutions and ECM today!

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