Federal Regulations Included in This Disclosures and Teach-Out Requirements, Transfer to New Institutions

58834 Federal Register / Vol. 84, No. 212 / Friday, November 1, 2019 / Rules and Regulations DEPARTMENT OF EDUCATION agency recognition; (3) increases from State authorization under the State academic and career mobility for constitution or by State law as a 34 CFR Parts 600, 602, 603, 654, 668, students by eliminating artificial religious institution with a religious and 674 regulatory barriers to work in a mission; • RIN 1840–AD36, 1840–AD37 profession; (4) provides greater Revise the State authorization flexibility for institutions to engage in requirements for institutions offering [Docket ID ED–2018–OPE–0076] innovative educational practices more distance education or correspondence expeditiously and meet local and courses; and Student Assistance General national workforce needs; (5) protects • Remove the regulations related to Provisions, The Secretary’s institutional autonomy, honors the Robert C. Byrd Honors Scholarship Recognition of Accrediting Agencies, individual campus missions, and Program, which has not received The Secretary’s Recognition affords institutions the opportunity to funding in many years. Procedures for State Agencies build campus communities based upon Authority for this Regulatory Action: Section 410 of the General Education AGENCY: Office of Postsecondary shared values; (6) modifies ‘‘substantive Provisions Act provides the Secretary Education, Department of Education. change’’ requirements to provide greater with authority to make, promulgate, ACTION: Final regulations. flexibility to institutions to innovate and respond to the needs of students and issue, rescind, and amend rules and SUMMARY: The Secretary amends the employers, while maintaining strict regulations governing the manner of regulations governing the recognition of agency oversight in instances of more operations of, and governing the accrediting agencies, certain student complicated or higher risk changes in applicable programs administered by, assistance general provisions, and institutional mission, program mix, or the Department. 20 U.S.C. 1221e–3. institutional eligibility, as well as makes level of credential offered; (7) clarifies Furthermore, under section 414 of the various technical corrections. the Department’s accrediting agency Department of Education Organization Act, the Secretary is authorized to DATES: These regulations are effective recognition process, including accurate recognition of the geographic area prescribe such rules and regulations as July 1, 2020. the Secretary determines necessary or Implementation date: For the within which an agency conducts appropriate to administer and manage implementation dates of the included business; (8) encourages and enables the functions of the Secretary or the regulatory provisions, see the accrediting agencies to support Department. 20 U.S.C. 3474. These Implementation Date of These innovative practices, and provides support to accrediting agencies when authorities, together with the provisions Regulations section of this document. in the HEA, permit the Secretary to FOR FURTHER INFORMATION CONTACT: For they take adverse actions; and (9) modifies the requirements for State disclose information about title IV, HEA further information related to programs to students, prospective recognition of accrediting agencies, authorization to clarify the responsibilities of institutions and students, and their families, the public, Herman Bounds at herman.bounds@ taxpayers, the Government, and ed.gov or (202) 453–7615 or Elizabeth States regarding students enrolled in distance education programs and institutions. Further, section 431 of the Daggett at [email protected] or Department of Education Organization students enrolled in programs that lead (202) 453–6190. For further information Act provides authority to the Secretary, to licensure and certification. related to State authorization, Scott in relevant part, to inform the public Filter at [email protected] or (202) 453– Summary of the Major Provisions of about federally supported education 7249 or Sophia McArdle at This Regulatory Action programs and collect data and [email protected] or (202) 453– These regulations— information on applicable programs for 6318. For all other information related • Revise the requirements for the purpose of obtaining objective to this document, Barbara Hoblitzell at accrediting agencies in their oversight of measurements of the effectiveness of [email protected] or (202) 453– member institutions and programs to be such programs in achieving their 7583 or Annmarie Weisman at less prescriptive and provide greater intended purposes. 20 U.S.C. 1231a. [email protected] or (202) autonomy and flexibility to facilitate Costs and Benefits: As further detailed 453–6712. If you use a agility and responsiveness and promote in the Regulatory Impact Analysis, the telecommunications device for the deaf innovation; benefits of these regulations include (TDD) or a text telephone (TTY), call the • Revise the criteria used by the increasing transparency and improving Federal Relay Service (FRS), toll-free, at Secretary to recognize accrediting institutional access for students, (800) 877–8339. agencies to focus on education quality honoring the autonomy and SUPPLEMENTARY INFORMATION: and allow competition; independence of agencies and • institutions, restoring focus and clarity Executive Summary Revise the Department’s process for recognition and review of accrediting to the Department’s agency recognition Purpose of This Regulatory Action: agencies; process, integrating risk-based review Through this regulatory action, the • Clarify the core oversight into the recognition process, improving Department of Education (Department responsibilities among each entity in the teach-outs for students at closed or or we): (1) Strengthens the regulatory regulatory triad—accrediting agencies, closing institutions, allowing triad by more clearly defining the roles States, and the Department—to hold accrediting agencies to focus greater and responsibilities of accrediting institutions accountable; attention on student learning and the agencies, States, and the Department in • Establish the roles and student experience, and restoring public oversight of institutions participating in responsibilities of institutions and trust in the rigor of the accreditation the Federal Student Aid programs accrediting agencies in the teach-out process and the value of postsecondary authorized under title IV of the Higher process; education. These regulations reduce Education Act of 1965, as amended (title • Establish that the Department regulatory burden on institutions that IV, HEA programs); (2) establishes recognizes an institution’s legal wish to develop and implement ‘‘substantial compliance’’ with regard to authorization to operate postsecondary innovative programs and on accrediting recognition criteria as the standard for educational programs when it is exempt agencies because of greater flexibility to VerDate Sep<11>2014 19:48 Oct 31, 2019 Jkt 250001 PO 00000 Frm 00002 Fmt 4701 Sfmt 4700 E:\FR\FM\01NOR2.SGM 01NOR2 Federal Register / Vol. 84, No. 212 / Friday, November 1, 2019 / Rules and Regulations 58835 make low-risk decisions at the staff on the proposed regulations. We do not stated that these programs deserve the level. In addition, these regulations discuss comments or recommendations same respect as programs at prestigious significantly reduce the regulatory that are beyond the scope of this institutions, and that the proposed burden associated with preparing and regulatory action or that would require regulations would make dramatic steps submitting accrediting agency petitions statutory change. forward for this often-overlooked form for recognition or renewal of recognition of higher education. Analysis of Comments and Changes since some of this review will now Discussion: We appreciate the occur through a site visit, thereby We developed these regulations commenters’ support. eliminating the need to upload perhaps through negotiated rulemaking. Section Changes: None. thousands of pages of documents. 492 of the HEA requires that, before Comments: Many commenters The potential costs associated with publishing any proposed regulations to expressed general opposition to the the regulations include some burden implement programs under title IV of proposed regulations, suggesting that associated with required disclosures the HEA, the Secretary must obtain the Department was weakening both its and the need for accrediting agencies to public involvement in the development oversight of accrediting agencies and the develop new polices for accreditation of the proposed regulations. After accrediting agencies’ oversight of decision-making, enforcement of obtaining advice and recommendations, institutions, reducing transparency, and standards, and substantive change the Secretary must conduct a negotiated putting students and taxpayers at risk. reporting requirements. While not the rulemaking process to develop the Others stated that we should withdraw anticipated or desired outcome, it is also proposed regulations. The negotiated the proposed regulations. The possible that agencies would avail rulemaking committee reached commenters were concerned that the themselves of reduced regulatory consensus on the proposed regulations proposed changes would erode the burden without redeploying resources that we published on June 12, 2019. The value of accreditation, make it difficult towards greater oversight of

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