Transcript General Disclosure Requirements

Consumer Disclosures
The Clery Act and
Drug Free Schools and Communities Act
Presented at:
The 12th Annual National Conference on
Allied Health Education
February 26, 2015
Bellagio Resort
Las Vegas, NV
Powers
Pyles
Sutter &
Verville PC
Attorneys At Law
Presented by
Sharon H. Bob, Ph.D.
1501 M Street, NW, Seventh Floor, Washington, DC 20005
Phone: (202) 466-6550 Fax: (202) 785-1756 www.ppsv.com
General Disclosure Requirements
 With limited exceptions, most information can be disclosed
via internet or intranet websites that are accessible to
individuals to whom the information must be disclosed,
although may be available through appropriate publications or
mailings.
 Information generally must be made available to enrolled and
prospective students.
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Annual Disclosure Requirements
 Must distribute an annual notice to enrolled students of
availability of required information:




List and briefly describe available information;
Describe how to obtain information;
Include exact web address; and
Include statement that a paper copy will be provided upon
request.
 Financial aid information.
 Institutional information.
 Information required to be disclosed under Family Education
Rights and Privacy Act (FERPA).
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Annual FERPA Notification
 Postsecondary schools must annually notify students in attendance
of their rights under FERPA, including their right to –
 Inspect and review education records;
 Request amendment of education records;
 Consent to disclosure of personally identifiable information, with
certain exceptions;
 File a complaint with ED; and
 Describe directory information disclosures and right to opt out.
 FERPA Resource
 Family Policy Compliance Office (FPCO)
 www.ed.gov/fpco
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Student Financial Aid Information
 Schools must make available to students information about:
 All financial student assistance programs available to students
who enroll at the school;
 Terms and conditions of Title IV, HEA loans;
 Criteria for selecting recipients and for determining award
amount;
 Eligibility requirements and procedures for applying for aid;
 Methods and frequency of disbursements of aid;
 Rights and responsibilities of students receiving Title IV
assistance;
 Satisfactory academic progress requirements; and
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Student Financial Aid
Information, cont.
 Loan terms including sample repayment schedule and necessity
for repaying loan.
 Statement about enrolling in study abroad and its impact on
applying for financial aid.
 Exit counseling information the school provides and collects.
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Cost of Attendance
 Schools must make available information about the cost of
attending the school including:
 Tuition and fees.
 Books and supplies.
 Room and board.
 Transportation.
 Additional costs.
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R2T4 and Refund Disclosures
 Schools must make available information about:
 Any refund policies applicable to the school.
 Requirements and procedures for officially withdrawing from
the school.
 Summary of R2T4 requirements.
 See page 5-116 of 2014-15 FSA Handbook.
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Retention Rate
 Schools must report retention rates of certificate or degree-
seeking, first-time full-time undergraduates entering the
institution.
 Retention rate is:
 A measure of the rate at which students persist in their
educational program at an institution, expressed as a
percentage.
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Placement Rates
 Required disclosures:
 Placement and types of employment obtained by graduates of
the institution’s degree or certificate programs.
 Include any placement rates calculated by institution.
 Placement rate may be gathered from state data systems,
alumni or student satisfaction surveys, the school’s
placement rate for any program, if it calculates such a rate.
 Identify source of information provided, including
timeframes and methodology.
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Completion and Graduation Rates
 Must be disaggregated by:
 Gender.
 Major racial/ethnic subgroups.
 Recipients of Federal Pell Grant, FFEL/DL (other than
unsubsidized Stafford loan).
 Recipients of neither Pell Grant nor FFEL/DL (other than
unsubsidized Stafford loan).
 Not required if number would not yield statistically reliable
information or would reveal personally identifiable
information.
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Post-Graduate Study
 For any 4-year program at the school, report the types of
graduates and professional education in which its graduates
enroll.
 This may be gathered from state data systems, alumni or
student satisfaction surveys or other relevant sources.
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Gainful Employment - Disclosures
 The court left in place regulations at 34 CFR 668.6(b)
requiring institutions to disclose certain information about
each of their GE programs.
 Schools must use the Department’s GE Disclosure
Template to provide all GE disclosures.
 Schools must update their GE program disclosures with 13-14
information no later than January 31, 2015.
 See GE Electronic Announcement #50 posted to IFAP on
September 11, 2014.
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Gainful Employment – Use of ED
Template
 Schools must prominently provide a direct link from the
home page of the GE Program website to the program’s
disclosure page that was generated by the disclosure template
application.
 A unique output file must be generated for each GE program at
the school.
 Any other web page containing general, academic, or
admissions information about the GE Program must also
contain a prominent and direct link to the program’s web
home page or to the GE Program disclosure page generated
by the template.
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Textbook Information for Students
 For each course listed in the school’s online course schedule,
must disclose:
 International Standard Book Number;
 Retail price for each required or recommended textbook; and
 Indication that required information is unavailable if it is yet to
be determined with designation “to be determined”
 Include a notice on written course schedule that textbook
information is on the internet course schedule, and include
web address.
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Peer-to-Peer File Sharing and
Copyrighted Materials
 PPA now requires that schools have developed and
implemented written plans to effectively combat
unauthorized distribution of copyrighted materials including
peer-to-peer file sharing.
 Applies to all users of institution’s network without interfering
with educational and research use of network.
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Peer-to-Peer File Sharing
 The written plan must include:
 At least one technology-based deterrent;
 Mechanisms for education of community;
 Institutional policies and sanctions for violations;
 Procedures for handling violations:
 Including disciplinary actions; and
 Procedures to periodically review effectiveness of the plan.
 No particular technology measures required.
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Peer-to-Peer Disclosures
 Schools must disclose to students:
 Explicit statement that unauthorized distribution of copyrighted
material may subject student to civil and criminal liabilities;
 Description of the institution’s policies on unauthorized peerto-peer file sharing, including disciplinary actions; and
 Summary of penalties for violation of federal copyright laws
 See page 2-105 of the 2014-15 FSA Handbook
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Peer-to-Peer File Sharing and
Copyrighted Materials
 Institutions must, in consultation with chief technology
officer, or other designated officer of institution:
 Review legal alternatives for downloading or otherwise
acquiring copyrighted materials;
 Make available results of the review to students; and
 To extent practicable, offer legal alternatives for downloading
or acquiring copyrighted materials.
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Campus Security
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Clery Act Basics
 The Clery Act requires all schools to:
 Collect, classify, and count crime reports and crime statistics;
 Publish and actively distribute an annual security report that
contains all statistical and policy disclosures;
 Submit crime statistics to ED; and
 Issue timely warnings and emergency notifications.
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Annual Security Report
 Schools must publish and distribute the annual security
report (ASR):
 Must publish the annual security report by October 1 each year;
 Report must be contained within a single document;
 Report must include:
 Three calendar years of campus crime statistics; and
 All required current campus safety and security policies and procedures.
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Annual Security Report ,cont.
 Must distribute the annual security report to all current
students and employees:
 Directly by mail, hand delivery, e-mail or by posting on an
Internet or intranet site that is reasonably accessible to current
students and employees.
 If you post the annual security report online you must distribute
a notice by October 1 each year that explains:
 Report’s availability;
 Exact URL;
 Description of contents; and
 Statement that paper copy is available upon request.
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Annual Security Report ,cont.
 Must actively notify prospective students and employees
about the availability of the ASR. The notice must include a
description of the report’s contents and explain how to
obtain a paper copy:
 Must provide a copy of the ASR upon request.
 If posted on an internet site notice must also include exact URL
where ASR is posted.
 For prospective students and employees, information may
not be posted on an intranet site.
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Violence Against Women Act
(VAWA)
 Signed into law on March 7, 2013.
 Law changed Clery Act requirements.
 Implementation:
 Electronic Announcement May 29, 2013.
 Proposed rules published in Federal Register on June 20,2014:
 Negotiators reached consensus; and
 Comment period ended July 21, 2014.
 Dear Colleague Letter GEN-14-13 published July 14, 2014
described school responsibilities for complying with statutory
change prior to publication of final regulations with the
10/1/2014 Annual Security Report.
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VAWA Final Regulations
 Final regulations published October 20, 2014 in Federal
Register:
 Effective date is July 1, 2015.
 Limited changes from NPRM:
 Reporting stalking crossing calendar years;
 Reporting stalking after an “official intervention”; and
 Reporting “unfounded” crime reports.
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Fire Safety Report
 Required of institutions that maintain on-campus student
housing.
 Four components:
 Publish and distribute annual fire safety report;
 Submit fire statistics to ED;
 Maintain log of reported fires; and
 Conduct safety drills.
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Fire Safety Report, cont.
 Schools must publish annual fire safety report by October 1
each year .
 Report must include:
 Fire statistics; and
 Current fire safety policies and procedures.
 Annual fire safety report and annual security report:
 May be published separately or together; and
 If published separately, specify how to access the other report in
each one.
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Drug Free Schools and
Communities Act
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Drug-Free Schools and
Communities Act
 Institutions must adopt and implement a drug and alcohol
abuse education and prevention program (DAAPP):
 To prevent the unlawful possession, use or distribution of illicit
drugs and alcohol by all students and employees on school
premises or as part of any of its activities.
 Accessible to any student, employee or officer.
 See 34 C.F.R Subpart 86.
 Certification of compliance included in signed Program
Participation Agreement.
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Drug Prevention Program
 Description of legal sanctions for unlawful possession or
distribution of illegal drugs and alcohol.
 Description of the health risks associated with the use of
illicit drugs and abuse of alcohol.
 Description of any drug or alcohol counseling, treatment,
rehabilitation or re-entry programs that are available to
students and employees.
 Clear statement that the school will impose disciplinary
sanctions on students and employees (consistent with law)
for violation of the standards of conduct.
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Review of Plan Effectiveness
 Schools must review drug prevention plans biennially:
 Determine the effectiveness of the plan;
 Determine the number of drug and alcohol violations and
fatalities that occur on campus and are reported to campus
officials; and
 Ensure disciplinary sanctions are consistently enforced,
including the number and type of sanctions imposed.
 Review report and supporting documents must be
maintained by the school and made available to the
Department upon request.
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Drug Prevention Program
 Written information must be distributed annually to all
employees and to each student taking one or more classes for
any kind of academic credit.
 Institutions must retain records including the annual
notification document for three years after the fiscal year in
which the record was created.
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Other Oversight
Agencies
34
Consumer Financial
Protection Bureau (CFPB)
35
CFPB Oversees Student
Loan Programs
 The Consumer Financial Protection Bureau (CFPB)
oversees private education loans and marketing of
financial products to students:
 On 12/6/2013, the CFPB published a final rule in the
Federal Register that extends oversight to certain nonbank
student loan servicers to ensure compliance with federal
consumer financial laws. The rule would cover the
servicing of private student loans and federal student
loans.
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CFPB Oversees Student
Loan Programs, cont.
 On 12/5/2014, the CFPB released its second semi-
annual report and found that approximately 6,200
student loan complaints are received by the CFPB.
The more common complaint relates to dealing with
a lender or servicer and includes issues such as
making payments, getting information about a loan,
and managing an account. Of the complaints, 87%
involved 8 companies.
 A copy of the report is available at:
http://files.consumerfinance.gov/f/201501_cfpb_se
mi-annual-report-fall-2014.pdf
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CFPB Oversees Student Loan
Programs, cont.
 On 12/17/2013, the CFPB issued a press release
requesting financial institutions to publicly disclose
financial agreements with colleges and universities to
market debt, prepaid, and other products to students.
 A press release is found at:
http://www.consumerfinance.gov/newsroom/cf
pb-calls-on-financial-institutions-to-publiclydisclose-campus-financial-agreements/.
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Federal Trade Commission
(FTC)
39
FTC Warns Veterans about
For-Profit Institutions
 On 11/1/2013, the Federal Trade Commission (FTC)
issued warning to veterans to be cautious in choosing to
spend their post-9/11 GI Bill benefits to attend forprofit institutions. The FTC posted “8 Questions to Ask”
when selecting a college:
 What is the total cost and how will I pay for the tuition or
expenses not covered by VA benefits?
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FTC Warns Veterans about
For-Profit Institutions, cont.
 Of the recent graduates who borrowed money,






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what percentage of them is delinquent on their
loans?
Will a degree from the school get me where I want
to go?
Is there pressure to enroll?
Can I get credit for military training?
Can I transfer credit I earn at this school to other
schools?
Is the school accredited?
Is the school committed to helping veterans?
FTC Warns Veterans About
For-Profit Institutions, cont.
 The FTC warning is found at:
http://www.consumer.ftc.gov/articles/0395-choosingcollege.
42
FTC Issues Revised
“Vocational School Guides”
 On 11/18/2013, the Federal Trade Commission (FTC)
issued revisions in the Federal Register to its “Vocational
School Guides,” which advise for-profit institutions how
to avoid deceptive marketing and recruiting practices.
 In 5/1972, Guides issued, effective date 8/14/1972;
 Guides were amended effective 10/9/1998;
 On 7/30/2009, FTC sought comments on Guide and
received 8 comments.
43
FTC Issues Revised
“Vocational School Guides”,
cont.
 Sole dissenter was APSCU, which recommended that the
Guides be retained for unaccredited and unlicensed
vocational schools only.
 Changes and comments are found in the Federal Register
at:
http://www.ftc.gov/os/fedreg/2013/11/131107vocat
ionalschoolfrn.pdf.
44
Department of Defense
(DoD) and Department of
Veterans Affairs
45
DoD Issues Proposed Rule for its
Memorandum of Understanding
(MOU)
 Effective 9/6/2014, to serve service members, all
educational institutions must adhere to requirements in
the DoD’s Memorandum of Understanding (MOU) and
be authorized to participate in the military tuition
assistance (TA) program.
 The revised MOU incorporates changes based on the
President’s Executive Order 13607, Principles of
Excellence for Educational Institutions Serving Service
Members, Veterans, Spouses, and Other Family Members,
which the President signed on 4/27/2012.
46
DoD Issues Proposed Rule for its
Memorandum of Understanding
(MOU), cont.
 New requirements would:
 Require all institutions to:
 Provide meaningful information to students about cost;
 Not use unfair, deceptive, and abusive recruiting practices; and
 Provide academic and student support services.
 Implement rules to strengthen procedures for access to
military installations;
 Require DoD to conduct annual reviews;
 Require the military departments to provide their service
members a joint services transcript; and
47
DoD Issues Proposed Rule for its
Memorandum of Understanding
(MOU), cont.
 Implement the DoD Postsecondary Education Complaint
System for its service members.
 More information is available at:
http://www.dodmou.com
48
Departments of Veterans Affairs,
Defense, Education, Justice, CFPB,
and FTC Implement Complaint
System
 On 1/30/2014, VA, DOD, ED, Justice, CFPB, and FTC
announced launch of a new online complaint system
designed to collect feedback from veterans, service
members, and their families who are experiencing
problems with educational institutions.
 More information is available at:
https://www.dodmou.com
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Sharon H. Bob, Ph.D.
Powers Pyles Sutter & Verville, PC
Seventh Floor
1501 M Street, NW
Washington, DC 20005
202-872-6772
[email protected]
February 26, 2015
50
Powers
Pyles
Sutter &
Verville PC
Attorneys At Law
Practice Areas:
• Education
• Title IV Eligibility & Compliance
• Program Reviews and IG Audits
• Accreditation
• Mergers & Acquisitions
• Public Policy & Government
Relations
• State Licensing
• Education Policy
Member:
• NASFAA
• CCA
Education:
• Ph.D., University of Maryland,
1976
• BA, State University of Buffalo,
1971, summa cum laude
SEVENTH FLOOR
1501 M STREET, NW
WASHINGTON, DC 20005
PHONE: (202) 466-6550 FAX: (202) 785-1756
www.ppsv.com
[email protected]
Sharon H. Bob, Ph.D.
Sharon H. Bob, Ph.D., Higher Education Specialist on Policy and Regulation, is a member of the Education Group at
the Washington, D.C. law firm of Powers Pyles Sutter & Verville, P.C. Dr. Bob advises all sectors of higher education
regarding strategic issues pertaining to their participation in the federal student financial assistance programs,
accreditation, licensure, education tax benefits, and related regulatory matters.
Dr. Bob advises public and private colleges and universities, as well as private and publicly-traded companies. In this
role, she provides clients with detailed technical guidance related to compliance with applicable statute and regulations.
She regularly assists postsecondary educational institutions on issues relating to institutional eligibility, program
eligibility, student eligibility, financial responsibility and administrative capability standards, changes of ownership,
adding locations and programs, program reviews and compliance audits, and institutional responsibilities for the
education tax benefits. Through training seminars and on-site reviews, she assists clients in complying with the federal
requirements for administering federal student financial assistance. Dr. Bob has authored numerous articles on federal
financial aid issues for The Greentree Gazette, NASFAA's Journal of Student Financial Aid, NASFAA's Student Aid
Transcript, the Career College Link, and other higher education publications and frequently speaks at meetings of
college officials and student aid administrators.
Dr. Bob received her undergraduate degree summa cum laude from the State University of New York at Buffalo and
was elected to Phi Beta Kappa. She received her doctorate from the University of Maryland.
Powers Pyles Sutter & Verville is a Washington, D.C.-based law firm that focuses on health care, education, and the law
of tax-exempt organizations.
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