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ED Proposes Significant Amendments to Change in Control and 90/10 Regulations

ED Proposes Significant Amendments to Change in Control and 90/10 Regulations

Cooley ED

Nancy Anderson, Kate Lee Carey, Jasmine Lee and Shannon Noonan
August 23, 2022
The Department of Education is accepting comments until August 26 on the NPRM to amends its 90/10 and change of ownership and control regulations.
*COMMENTS DUE THIS WEEK*
On July 28, 2022, the US Department of Education (ED) published a Notice of Proposed Rulemaking (NPRM) to amend its 90/10 and change of ownership and control regulations.
ED is accepting comments on the rule package until August 26, 2022, before it issues a final rule. We expect ED will publish the rule package in final form no later than November 1, which allows the rules to take effect next July 1, 2023, under ED’s master calendar requirements. If ED misses the November 1 deadline, the final rule would likely take effect July 1, 2024.
Negotiated Rulemaking (Neg Reg) History
The change in control and 90/10 proposals are part of ED’s 2022 negotiated rulemaking process, which wrapped up a series of hearings earlier this year. ED’s Neg Reg committee ─ which consisted of stakeholders and experts in the covered issues ─ discussed rule proposals across seven broad federal student aid topics. Although ED was expected to issue NPRMs on each of the topics this summer, ED indicated in June it would delay most of the proposals until 2023. The change in ownership/control and 90/10 changes issued in this NPRM are now the only remaining proposals from the federal student aid topics expected this year. Although this proposal has gotten less attention that those related to borrower defense to repayment issues earlier this year, some of these changes are equally as important and will materially modify existing regulatory standards.

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