Report to Congress Says Financial-Aid Rules Are Hurting Distance Programs
By DAN CARNEVALE
In a report to sent to Congress
last week, the U.S. Department of Education
says that a lack of flexibility in financial-aid regulations hurts the
advancement of distance-education programs.
Regulations restricting which institutions can provide federal financial
aid are complex and inhibiting, the report says, and should be updated
to reflect the growth of alternative education.
Those rules mentioned include one that prevents institutions offering
more than 50 percent of their courses at a distance from providing federal
student aid. Another rule requires that students enroll in at least 12
hours of course work a week to qualify for full-time status and with it
the maximum amount of student aid. The regulations were originally written
to prevent fraud.
The report is the department's first on the results of the Distance
Education Demonstration Program, which waives some rules and regulations
affecting financial aid for participating institutions. The program currently
has 15 participants, some of which are systems or consortia, bringing the
total number of institutions participating to 111. Up to 35 more participants
will be added in the coming months.
Congress required that the first report on the program be submitted
after 18 months and that subsequent reports be written annually. The report
responds to some of the concerns that institutions have about federal rules
and statutes, but it does not propose any solutions.
"It doesn't make specific recommendations about what Congress should
do," said Maureen McLaughlin, deputy assistant secretary for policy, planning,
and innovation at the department. "The question is, What kind of changes
would you make?"
Ed Klonoski, director of the Connecticut Distance Learning Consortium,
which is among the participating consortia, said the demonstration program
had shown that the rules need to be permanently changed.
As evidence, he noted that one member of the Connecticut consortium,
Charter Oak State College, would not be eligible to provide federal financial
aid if not for the waivers allowed by the program. "They needed all of
the flexibility that they could get with the demonstration program," he
said.
Although he didn't have specific recommendations for changing the 50-percent
and 12-hour rules, Mr. Klonoski said he would rather see the Education
Department evaluate institutions by measuring student performance.