Posted Date:June 10, 2015
|Author:||Colleen McGinnis, Chief of Staff, Federal Student Aid|
Subject: Enforcement of the Prohibition on Incentive Compensation Payments
On June 2, 2015, Under Secretary Ted Mitchell issued a memorandum that provided direction to the Department in responding to violations of the incentive compensation prohibition in section 487(a)(20) of the Higher Education Act (20 U.S.C. § 1094(a)(20)). Under the Under Secretary’s memo, Federal Student Aid will recover funds from institutions that are found to have violated the incentive compensation prohibition.
We have attached a copy of Under Secretary Mitchell’s memorandum on this topic.