"The new accountability metric, set to take effect in July, could eventually cut failing programs off from all federal student aid funds-an enhanced penalty that appeared key to the committee reaching consensus Friday. Before the compromise, programs that fail the earnings test would only have lost access to federal student loans. Under the proposal, college programs will have to show that their graduates earn more than a working adult with only a high school diploma."
"But now, failing programs will also lose eligibility for the Pell Grant if their institution doesn't pass a separate test, which measures whether failing programs account for either half of the institution's students or federal student aid funds. If either condition is met in two consecutive years, the programs will be cut off. The timing of the two tests and consequences mean that it will take at least three years for institutions to lose all access to federal student aid."
A new accountability metric, effective in July, requires all postsecondary programs to pass a single earnings test that compares graduates' earnings to working adults with only a high school diploma. Programs failing the earnings test lose access to federal student loans after two consecutive failing years. Failing programs will also lose Pell Grant eligibility if the institution fails a separate institutional test showing the failing programs account for half of students or federal student aid in two consecutive years. Combined timing means institutions could lose all federal student aid after at least three years. The compromise is projected to protect roughly 2 percent of students and save about $1 billion annually in Pell funds.
#higher-education-accountability #earnings-based-metric #federal-student-aid #pell-grant-eligibility
Read at Inside Higher Ed | Higher Education News, Events and Jobs
Unable to calculate read time
Collection
[
|
...
]