03.11.11

Program Integrity and Taxpayer Investments Are Protected in New Higher Education Regulations, Witnesses Tell House Panel

WASHINGTON, D.C. –The Department of Education’s regulations regarding how colleges and universities determine the amount of federal aid for which a student is eligible ensure accountability and program integrity, as well as protect the taxpayers’ investment in federal student aid, witnesses told the Subcommittee on Higher Education And Workforce Training today.

“In my view, these regulations are greatly needed to strengthen the accountability and review of institutions of higher education that participate in the federal student aid programs,” said U.S. Rep. Ruben Hinojosa (D-TX), the senior Democrat on the subcommittee. “Every year, the federal government spends billions of dollars on student financial aid.  It is imperative that congress and the department of education provide strong oversight for these federal student aid dollars.”

Because of concern about federal interference in school operations, curriculum, and instruction, the Department of Education has historically relied on accrediting agencies and states to determine and enforce standards of program quality, including determining whether federal student aid is properly assigned based on a student course load and credit hours. But recent reports and investigations found that many accrediting agencies did not have sufficient policies to ensure proper assignment of credit hours to education programs and to justify the length of such programs. Further, the amount of student financial assistance that can be awarded is based on the number of credit hours earned, but until recently, the term “credit hour” was not defined in federal law. In an effort to rectify these discrepancies, the Department of Education defined a “credit hour” in final regulations issued October 29, 2010.

Kathleen S. Tighe, the Inspector General at the U.S. Department of Education Office of Inspector General, explained the need for oversight into credit hours.  

“The Department’s definition of a credit hour is based on the current funding assumption that a full-time student is academically engaged full-time,” said Tighe. “To the extent that a full-time student is not expected by an institution or the institution’s accrediting agency to be academically engaged on a full-time basis Federal student aid may be over-awarded.”

The Department of Education defined a credit hour as:
•    one hour of classroom instruction and two hours of homework each week for approximately 15 weeks for a semester or trimester or 10-12 weeks for one quarter hour of credit, or
•    an equivalent amount of work (such as independent study, internship, etc.)

“The definition of a credit hour protects students and taxpayers from inflated credit hours, the improper designation of full-time student status, the over-awarding of Federal student aid funds, and excessive borrowing by students especially with distance, accelerated, and other programs not delivered through the traditional classroom format,” Tighe continued. “The Department’s regulations reflect our advice and protect both students and taxpayers by including a definition of a credit hour that seeks to ensure equity in funding across institutions and among students based on the level of academic engagement and to help ensure appropriate funding based on the concept of a full-time student being academically engaged full-time.”

For more information on the oversight work of the Inspector General on higher education accrediting agencies, click here.