Biden administration gutting online education with new ‘harmful’ guidance, warn experts, lawmakers

Biden administration gutting online education with new ‘harmful’ guidance, warn experts, lawmakers

The Biden administration will now be able to crack down on private companies that contract with colleges and universities to help the schools run their online education programs, raising alarm bells among experts and lawmakers who warned the federal government could stifle remote learning for students.

The Education Department issued guidance last month saying online program managers (OPMs), which are outside contractors that recruit students for and operate schools’ online academic programs, are officially considered third-party servicers, or entities involved with the administration of “any aspect” of an institution’s federal student financial aid.

As a result, these companies can be subjected to stricter federal oversight in a manner that, critics argue, will hurt not only the schools and contractors, but also ultimately the students they serve.

One of the most prominent critics of the department’s new guidance is Rep. Virginia Foxx, R-N.C., chairwoman of the House Committee on Education and the Workforce.

President Biden with Education Secretary Miguel Cardona, right, on Aug. 24, 2022 in the Roosevelt Room of the White House in Washington, D.C.

President Biden with Education Secretary Miguel Cardona, right, on Aug. 24, 2022 in the Roosevelt Room of the White House in Washington, D.C. (OLIVIER DOULIERY/AFP via Getty Images)

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“The growth of technology and its applications in providing students with a well-rounded education is exciting and should be commended,” Foxx told Fox News Digital. “More options for students mean more opportunities for success. For the department to conflate access to online education with rising federal student loan debt diminishes that fact and ultimately hurts the partnerships between institutions, innovators, and the students they serve.”

“The department seems to be more interested in controlling the actions of private companies and creating unnecessary headaches for institutions than it is ensuring students have every tool to succeed academically,” Foxx continued. “I urge the Biden administration to reverse course on this harmful guidance.”

OPMs have long been the target of congressional Democrats and consumer groups, which believe the companies can, through their contractual arrangements, drive up the price of higher education and draw students to low-value academic programs.

Sen. Elizabeth Warren, D-Mass, for example, has raised “concerns about the impact of OPM partnerships on rising student debt loads.”

Under Secretary of Education James Kvaal echoed that sentiment in a statement when the department released its new guidance.

A girl participating in online education training class with teacher and other students using laptop at home.

A girl participating in online education training class with teacher and other students using laptop at home. (iStock)

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“Online education has the potential to meet the needs of many students and lower costs,” he said. “But we are concerned about the growth in loan debt and want to ensure students get value for their money.”

However, many colleges and universities do not have the in-house funding and expertise to develop the online programs they need and need outside help, according to experts familiar with the issue.

OPMs are not the only ones affected by the Education Department’s rules, which critics argue will have a broader negative impact than government officials may realize.

Local police departments helping to compile and analyze campus crime statistics and hospitals providing clinical experiences and “the related educational programing for nurses and other medical professionals” are among the outside entities helping schools through contractual agreements that are being considered third-party servicers, according to the American Council on Education.

The council recently wrote a letter to Education Secretary Miguel Cardona, outlining some of the problems it had with the department’s guidance.

Secretary of Education Miguel Cardona in the Eisenhower Executive Office Building in Washington, D.C., Aug. 8, 2022. 

Secretary of Education Miguel Cardona in the Eisenhower Executive Office Building in Washington, D.C., Aug. 8, 2022.  (REUTERS/Evelyn Hockstein)

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“The broadened definition of a [third-party servicer] appears to cover entities that are beyond the common understanding of that term,” the letter states. “Our hope, if given appropriate time to comment, is to provide the department with a fuller picture of the variety of important institutional arrangements that exist so it may better understand the guidance’s impact … We believe the department would benefit from a deeper understanding of the potential that the guidance could trigger an unintended disruption of services to students currently provided by institutions through these entities.”

The letter was co-signed by 46 other higher education interest groups and associations, including accreditors.

Other experts see the department’s actions as not merely misguided but intentional overreach.

“The Department of Education’s crusade against for-profit colleges is now ensnaring a wide range of service providers,” Adam Kissel, visiting fellow at the Heritage Foundation, told Fox News Digital. “This is a classic case of overregulation by overzealous bureaucrats. Every new rule or interpretation like this makes it harder for colleges to serve their students.”

Whatever the department’s motivation, what is clear is the new guidance will present a host of new hurdles for both schools and companies.

A woman working form home with a laptop.

A woman working form home with a laptop. (iStock)

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One challenge, according to legal experts, is that third-party servicers are legally required to sign a contract with their educational partner to be “jointly and severally liable” to the Education Department for any federal violations.

“Third-party OPMs have been able to hide behind really crafty language in their contracts that keeps them from being responsible for any violations,” Stephanie Hall, a senior fellow at the Center for American Progress, told Inside Higher Ed. “It places all the responsibility on the institution.”

Critics have countered that, beyond creating a major new legal hurdle to overcome, the liability requirements could hurt smaller companies, which unlike bigger players, may be unwilling or unable to indemnify their campus partners. Duane Morris, a law firm that works with colleges, has also noted that while a purpose of the guidance may be to hold OPMs liable, the reverse would also hold true; the school would be liable for any violation committed by the third-party servicer.

Another challenge is that third-party servicers are subject to regular audits, which would require these companies to make all their contracts available to federal regulators.

As a result, OPMs and educational institutions will need to take the extra time and effort to carefully redo all their contracts, and some may not even want to continue their partnerships, according to Tony Guida, an attorney at Duane Morris who focuses on education issues.

A tour group makes a stop at the Sterling Memorial Library on the Yale University campus in New Haven, Connecticut, June 12, 2015.

A tour group makes a stop at the Sterling Memorial Library on the Yale University campus in New Haven, Connecticut, June 12, 2015. (Photographer: Craig Warga/Bloomberg via Getty Images)

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“OPMs will have to be much more intentional about services they provide,” Guida told Fox News Digital. “With more liability, some companies won’t want to take the risk.”

All these changes would be disruptive to the service of providing online education, critics argue, and have a downstream negative effect on student learning and the quality of higher education.

However, in a statement to Fox New Digital, the Education Department defended its guidance, arguing its simply meant to ensure all parties are complying with federal law.

“The updated third-party servicer guidance is intended to provide much needed clarity and transparency on existing requirements regarding companies that work with colleges around the administration of federal student aid,” a department spokesperson said. “It will help ensure these companies are in compliance with federal rules and regulations so that students can make the best possible decisions about their education.”

“The department is seeking public comment on this guidance, and we will carefully review all comments received,” the spokesperson added. “In the meantime, we will work with colleges to ensure the requirements are clear and that they have ample time to meet reporting deadlines.”

The Department of Education Building.

The Department of Education Building. (iStock)

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Perhaps most importantly, however, these voices argue expanding who falls under the umbrella of third-party servicers also increases the control of the federal government.

“If you’re a regulated entity, the Education Department has broad investigative powers over you,” said Guida. “They can request documents, other things of that nature that would make operating much more difficult. And if third-party servicers don’t comply, this guidance could be weaponized against them.”

Supporters of the department’s guidance counter that the current situation is too opaque.

“That will provide important transparency into what’s going on,” Robert Shireman, senior fellow at the Century Foundation, told Inside Higher Ed. “The Department of Education and then the rest of us will learn more about the contracts that institutions have, and there will be greater scrutiny and accountability for the OPM contractors if they are involved in recruiting students.”

A key issue for the Education Department and those critical of OPMs is how these companies share revenue with academic institutions. In many cases, the company receives a share of the schools’ tuition revenue. However, contractors are increasingly moving away from the revenue-sharing model, instead charging fixed fees for specific services. Some observers claim these companies are having the effect of increasing school tuition rates and profiting from it.

Education Secretary Miguel Cardona speaks during the 2022 National and State Teachers of the Year event in the East Room of the White House in Washington, April 27, 2022.

Education Secretary Miguel Cardona speaks during the 2022 National and State Teachers of the Year event in the East Room of the White House in Washington, April 27, 2022. (AP Photo/Susan Walsh, File)

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However, others see such arguments — and the department’s new guidance — as ultimately an effort to combat efforts to profit in the education space.

“With the new guidance released last month, the Biden administration seems to be following in the footsteps of President Obama in trying to extinguish private sector, profit seeking participation in higher education,” Beth Akers, senior fellow at the American Enterprise Institute, told Fox News Digital. “There seems to be an attitude that there is no place for profit seeking in higher education. It’s a nice idea to think that all service providers in education should be motivated by benevolence, but profit is what often motivates major innovation — something desperately needed in higher education.”

“Higher education,” continued Akers, “is a realm that has been remarkably stagnant. Instead of trying to stamp out profit seeking and the innovation that would come with it, the Department of Education should focus instead on ousting poorly performing institutions and programs of study from the federal dole by cutting off student aid (loans and grants) from colleges whose graduates fail to out-earn workers with just a high school diploma.”

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The department initially gave colleges and universities until May 1 to report details of their agreements to the government and 30 days to submit comments on the changes. Following widespread outcry, however, the department said that in response to “confusion,” the guidance would not take effect until Sept. 1, rather than immediately as of last month. It also pushed back the end date of the public comment period through March 29.

“This seems to be a solution in search of a problem rather than the other way around. The department hasn’t identified what harm it’s trying to prevent,” said Guida. “It appears to be a broad regulatory grab.”

Biden administration approves Washington state request to offer health insurance to undocumented immigrants

Biden administration approves Washington state request to offer health insurance to undocumented immigrants

The Biden administration has authorized an software by Washington state to develop health and fitness insurance policies entry for all people regardless of immigration position by enabling it to forgo requirements established by the Reasonably priced Treatment Act (ACA).

The Department of Wellness and Human Companies (HHS) and the Treasury Division accredited Washington’s software for a Point out Innovation Waiver, issued beneath Segment 1332 of the ACA. The application for this waiver was submitted in Might.

What is a 1332 waiver?

A condition may possibly implement for a 1332 request if it needs to pursue “innovative strategies” for offering affordable wellness care while nevertheless retaining protections provided via the ACA.

The HHS secretary may perhaps approve a 1332 waiver request if they identify that the proposed prepare will present coverage that is at minimum as thorough as protection furnished with out the waiver, which the Washington condition approach was found to do.

The Evergreen State’s exception

Washington state specially sought to be granted an exception from a element of the ACA that excluded people residing in the U.S. illegally from staying eligible for competent wellness strategies, which are plans qualified by the federal authorities that satisfy specifications set by the ACA.

According to the two departments, this waiver will expand accessibility to qualified wellness programs, stand-by yourself competent dental designs and a state affordability plan to Washington people irrespective of their immigration status.

“The waiver will assist Washington function to its plans of increasing health and fitness fairness and lessening racial disparities by growing entry to protection for the uninsured inhabitants by the point out Trade, all the when not expanding prices for all those now enrolled,” the departments claimed in a assertion.

The acceptance of this waiver is contingent on the condition accepting certain terms and conditions. If these requirements are agreed on, then the waiver will go into effect from the commencing of 2024 to the finish of 2028.

Whilst the newly accepted waiver will not go into outcome subsequent year, the White Property pointed out in its acceptance that Washington condition had allocated fiscal 2023 money for a point out subsidy system referred to as Cascade Treatment Cost savings. The software provides high quality subsidies to people who get plans by way of Washington Healthplanfinder and make up to 250 percent of the federal poverty stage.

For 2023, $50 million was allotted for this plan. With the acceptance of this waiver, an further $5 million will grow to be available for these subsidies beginning the following calendar year.

Not the only one

Roughly 20 other states have utilized for and been given approval of ACA Section 1332 waivers, including Alaska, Georgia, New Hampshire, Minnesota and Pennsylvania. In circumstances where by programs ended up not accredited, the businesses often decided that they had been incomplete.

In a equivalent go to Washington state’s, Colorado expanded inexpensive overall health care coverage to include men and women dwelling in the U.S. illegally. Though Colorado has gained approval for its individual ACA waivers, this growth to involve inhabitants no matter of immigration position was done as a result of the state’s very own systems and did not include things like federal coverage.

FACT SHEET: Biden-Harris Administration Announces American Rescue Plan’s Historic Investments in Community Health Workforce

FACT SHEET: Biden-Harris Administration Announces American Rescue Plan’s Historic Investments in Community Health Workforce

$225 Million in Coaching Grants Awarded Right now American Rescue Plan Investments for Community Overall health Workforce Total About $1.1 Billion

Today, the Biden-Harris Administration is awarding $225 million in American Rescue Program resources to teach around 13,000 Community Well being Workers (CHWs). In reaction to the acute want to expand the health treatment workforce and handle pandemic-similar burnout, the American Rescue Plan furnished historic investments. Among these investments, President Biden’s American Rescue Program furnished a full of more than $1.1 billion for local community health, outreach, and wellness instruction workers—the most significant at any time 1-time financial investment in the nation’s local community wellbeing workforce. These investments are predicted to deploy around 40,000 persons in local community wellness, outreach, and wellbeing instruction roles in excess of the coming yrs. This investment decision will establish on the about 50,000 CHWs who have been already doing work in American communities just before the pandemic.

CHWs are an proof-based mostly, price-powerful general public health workforce to improve inhabitants wellness and improve wellbeing techniques. Especially for underserved communities, CHWs, as perfectly as outreach and health training workers, serve as dependable messengers and advocates supporting to facilitate interaction amongst men and women and health treatment companies. They also participate in a important job in addressing pre-existing health and fitness inequities that ended up exacerbated by the pandemic.

President Biden understands the worth of investing in a contemporary general public health workforce, and his Administration carries on to supply on his campaign assure to grow the community health workforce. Though there is additional get the job done to do to secure and make on this progress, the American Rescue System strengthened our community wellbeing system for the duration of the pandemic and is constructing capacity for the future.

Today’s announcement builds on other essential American Rescue Prepare investments in our local community wellness workforce, such as:

  • Swift deployment of over 14,000 community outreach workers (like CHWs) by more than 150 nationwide and area businesses to deepen COVID-19 vaccine self-confidence, enhance vaccination costs, and provide as trusted messengers in underserved communities. Examples include:
    • The Affiliation of Asian/Pacific Community Wellbeing Corporations used American Rescue System funds to create the CHW Workforce Collaborative (the Collaborative). The Collaborative has due to the fact employed, properly trained, and deployed more than 250 CHWs who converse about 36 Asian, Native Hawaiian and Pacific Islander languages in 12 continental U.S. states and Hawaii.
    • The Communities Increase Collectively initiative, supported by WE in the World and the Community Wellness Institute, is working with American Rescue System funding to recruit, employ the service of, and coach CHWs to perform with Black, Native American, Latinx, Asian American/Pacific Islander, immigrant/migrant, and minimal-revenue older adult populations in 200+ counties throughout the country. Increase associates practice and engage vaccine ambassadors and promotors to provide as reliable messengers and connect local community members with vaccines and nicely-staying requirements, though doing the job to handle fundamental motorists of overall health inequities.
  • Jurisdictions throughout the nation are also employing American Rescue Approach Condition and Local Fiscal Restoration Resources to make CHW systems tailored to their communities’ needs. Examples consist of:
    • Chicago, IL has hired more than 800 neighborhood health and fitness workers and offered them with broader healthcare coaching. This plan is constructing the abilities of residents in communities encountering the greatest financial hardship in the health care careers we want tomorrow, when supporting critical overall health demands in the group currently. 
    • New York Town, NY is constructing a corps of above 500 CHWs throughout the town. These individuals will educate New Yorkers on wellbeing issues, connecting them to vital healthcare solutions and enabling them to meet up with their wellness goals.
    • San Diego County, CA has mobilized more than 250 CHWs, who collectively communicate 26 languages, to present customized outreach and training to people who have been typically really hard to attain. They have focused on underserved and underneath-immunized communities, like Black and African American, Latino, refugee, and Asian and Pacific Islander communities.
    • Detroit, MI is investing $15 million in a Local community Well being Corps to assist Detroit people who are living drastically below the federal poverty line take care of their demands.
  • Institution of a 1st-of-its-type General public Health AmeriCorps, a historic partnership in between AmeriCorps and the Centers for Illness Regulate and Prevention (CDC), to create and educate the next generation of general public well being leaders. The method will spot up to 3,000 AmeriCorps associates during its very first 12 months, with countless numbers additional predicted in the coming many years. Illustrations incorporate:
    • Family members Scholar Household in Kentucky is engaging 200 AmeriCorps associates to deliver health care aid and providers to seniors and disabled people in healthcare amenities across Kentucky.
    • DeKalb County in Ga is participating 16 AmeriCorps members to supply ability, assist, and improved consciousness of COVID-19 tests and vaccination accessibility to aid equitable overall health results and COVID-19 restoration in underserved communities.
    • Houston Wellbeing Office is participating 25 whole-time AmeriCorps members to supply navigation services and health instruction in traditionally underserved and social vulnerability index (SVI) priority zip codes in Houston, Texas. The AmeriCorps associates will deliver wellness education and learning and increase access to health care and human companies.

Investments in neighborhood wellbeing and outreach staff are part of the American Rescue Plan’s historic expenditure of about $12 billion in our overall health workforce—among the premier one particular-time infusions of assets in background this figure does not consist of the billions invested in the workforce for property and local community-dependent companies. These investments are helping reply to the COVID-19 pandemic, deal with extended-standing inequities, and create capability for the long term. These investments include things like:

  • Recruiting, coaching, and supporting health and fitness care pros
  • Surging assets to condition and regional general public health departments
  • Serving to handle America’s psychological health and material use disaster

Recruiting, Schooling, and Supporting Wellness Care Experts
The U.S. is suffering from a serious scarcity of health treatment gurus, in particular in rural and underserved communities. In 2019, the United States experienced approximately 20,000 fewer medical professionals than demanded to meet the country’s health and fitness care want that hole could expand as higher as 124,000 by 2034. Every yr as a result of 2031, on common there will be much more than 203,000 position openings for registered nurses. Rural areas are particularly impacted by shortages: 20{08cd930984ace14b54ef017cfb82c397b10f0f7d5e03e6413ad93bb8e636217f} of People in america dwell in rural locations but only one particular-tenth of medical professionals practice in rural regions. These shortages have been exacerbated by recruitment challenges and service provider burnout during the COVID-19 pandemic.

  • Thanks to American Rescue Plan funding, HRSA approximately quadrupled the range of Countrywide Wellness Assistance Corps scholarships awarded and just about doubled the amount of Nurse Corps scholarships awarded in 2021. With more help from ARP, a document 22,700 health treatment vendors – the greatest range at any time supported – now exercise in underserved communities and are dealing with additional than 23 million clients many thanks to loan repayment and scholarship payments.
  • The American Rescue System is addressing the nation’s company burnout and exhaustion crisis by investing $120 million in the direction of wellness employee resiliency and schooling packages. 
  • The American Rescue Plan is making use of $330 million to assist teach a lot more key care doctors and dentists in higher-need locations. This financial commitment extra than doubles typical annual appropriations for the Training Wellness Middle Graduate Clinical Schooling Program, which supports principal treatment residency packages in rural and underserved communities.

Surging Sources to Point out and Local General public Overall health Departments
The American community wellness program has been woefully underfunded COVID-19 exposed these inadequacies nationwide. By some estimates, point out and area public well being departments required to raise their pre-pandemic workforce by 80{08cd930984ace14b54ef017cfb82c397b10f0f7d5e03e6413ad93bb8e636217f} to present a least established of public wellbeing services.

  • The American Rescue Strategy presented $2 billion in workforce funding through CDC to insert above 8,600 personnel to assist point out and community governments react to COVID-19. These new team incorporate university nurses, scientific team, and epidemiology team. Jurisdictions had been also equipped to provide schooling and improvement chances, retain employees, offer aggressive salaries, and set up paid out internships and fellowships.
  • The American Rescue Plan is investing a historic $3 billion to assist condition, community, and territorial general public well being departments construct resilience from long term public wellness emergencies. This versatile CDC funding will let jurisdictions, in section, to make long-expression investments in their workforce.

Aiding Handle America’s Psychological Wellness and Substance Use Disaster
Individuals are experiencing an unparalleled mental wellness and substance use disaster, with desire for products and services significantly greater than the potential of the workforce to deliver expert services.

  • The American Rescue Program invested $180 million to bolster ability for the Nationwide Suicide & Disaster Lifeline. Traditionally, the National Suicide Avoidance Lifeline was underneath-resourced and understaffed, leading to minimal response prices and reaction periods. These resources are also supporting the Lifeline’s changeover to 988, an straightforward-to-keep in mind amount for folks to attain the Lifeline and attain 24/7 obtain to skilled counselors who can assist people encountering suicidal, compound use, and other mental well being crises.
  • The American Rescue System invested $100 million to teach graduate learners to support behavioral health needs among vulnerable populations. This expense supports placements at health facilities and other group-dependent configurations the place trainees will operate in the underserved communities wherever behavioral health solutions are most urgently necessary.

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