The Higher Education Act of 1965 (HEA) requires Title IV-eligible institutions to provide certain information about the school and its programs to all current and prospective students. 34 C.F.R. § 668.43. This bulletin reminds Title IV-eligible institutions and third-party servicers of this regulation and provides examples of conduct that creates a risk of violating its requirements.
Pursuant to 34 C.F.R. § 668.43(a)(1), institutions must make readily available to enrolled and prospective students information about the cost of attendance that includes: (1) tuition and fees charged to students; (2) estimates of costs for books and supplies; (3) estimates of typical charges for room and board; (4) estimates of transportation costs; and (5) any additional costs. A prospective student is an individual who has contacted a Title IV-eligible institution requesting information concerning admission to that institution. 34 C.F.R. § 668.41(a).
During oversight activities, including investigations and secret shopping operations performed over the last year, Federal Student Aid (FSA) has identified conduct that, under certain circumstances, could rise to the level of a violation of 34 C.F.R. § 668.43. FSA is issuing this bulletin to inform schools of this risk, and to aid them in their compliance efforts. This conduct includes situations where schools may be imposing conditions or barriers on students seeking information about the cost of attendance. For example:
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Admissions representatives declined to provide prospective students with the cost of a program over the phone. In some instances, the representatives indicated that prospective students could obtain information about costs, as well as grants and scholarships, if the prospective student came in for an on-campus visit.
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Admissions representatives or schools’ webpages require a prospective student, who had not yet begun the enrollment process, to provide personally identifying information, including name, date of birth, and contact information, in order to access information about the cost of attendance.
Institutions must make the cost of attendance, along with other institutional and programmatic information, readily available to enrolled and prospective students. Barriers or conditions such as those listed above could lead to non-compliance with this requirement. Institutions are reminded of their responsibility for maintaining appropriate compliance management systems and policies, including adequate internal controls to detect and prevent non-compliance. Likewise, FSA will monitor complaints, tips, lawsuits, and borrower defense to repayment applications from students, faculty, and staff who allege that institutions and their representatives have not made the cost of attending the institution readily available to enrolled and prospective students. FSA also may test schools’ compliance with this regulation in its secret shopper operations. If the Secretary determines that an institution fails to make the cost of attendance readily available to enrolled and prospective students, the Secretary may take administrative action including, but not limited to, imposing a fine or limiting the institution’s participation in the Title IV program.
Reporting Misconduct or Fraud
FSA's Office of Enforcement welcomes and encourages information from current and former employees, vendors, and contractors of postsecondary institutions, third-party servicers, third party lead generators, students, or any other relevant individual about potential violations of Title IV programs. Knowledgeable sources with information about potential violations may submit relevant tips and information by visiting Ed.gov/FSATips or emailing FSATips@ed.gov.
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