	Background

		Eligibility Criteria for School Participation in the Title IV Program

In order for students attending a school to receive Title IV funds, a school  must be:  1.  licensed or otherwise legally authorized to provide higher education in  the state in which it is located,  2.  accredited by an agency recognized for that purpose by the Secretary  3.  deemed eligible and certified to participate in federal student aid  programs by Education. Past and Ongoing Initiatives to Examine Schools’ Federal Regulatory Burden

Over the last two decades, there have been several efforts to examine  the federal regulatory burden faced by schools (see table 1). Experts Cited a Range of Requirements as Burdensome

Although the 18 experts we interviewed offered varied opinions on which  Title IV requirements are the most burdensome, 16 said that federal  requirements impose burden on postsecondary schools. While no single  requirement was cited as most burdensome by a majority of experts, 11  cited various consumer disclosures schools must provide or make  available to the public, students, and staff (see table 2). Beyond consumer disclosures, 4 experts stated that schools  are burdened by requirements related to the return of unearned Title IV  funds to the federal government when a student receiving financial aid  withdraws from school. According to 2 experts, schools find it  particularly difficult both to calculate the precise amount of funds that  should be returned and to determine the date on which a student  withdrew. Experts also described some of the benefits associated with Title IV  requirements. For example, participants in four  groups said the requirement that schools receiving Title IV funds post a  net price calculator on their websites—an application that provides  consumers with estimates of the costs of attending a school—has proven  costly or complicated, noting challenges such as those associated with  the web application, obtaining the necessary data, or providing  information that may not fit the schools’ circumstances. School officials  from six discussion groups also noted that complying with requirements  related to the Return of Title IV Funds can be costly because of the time  required to calculate how much money should be returned to the federal  government (see Appendix III for information on selected comments on  specific federal requirements school officials described as burdensome). Participants in three discussion groups  found the complexity of Return of Title IV requirements made it difficult to  complete returns within the required time frame. As shown in table 4, the department publishes  notices in the Federal Register, on its website, and through a listserv to  make the public aware of opportunities to provide feedback on burden.Department officials also said they receive some feedback from school  officials through informal channels such as training sessions and open  forums at conferences. For example, Education said it received no comments in  response to its request for public comment on burden estimates included  in its 2010 “Program Integrity” Notices of Proposed Rulemaking, which  proposed multiple regulatory changes with increased burden estimates. shows that fewer than one-fourth (65 of 353) received public comments,  of which 25 included comments that addressed burden faced by schools  (see fig 1). For example, 2 ICRs received input on the difficulties of  providing data requested by the department. Concluding Observations

Notwithstanding the benefits of Title IV requirements, school officials  believe that the burden created by federal requirements diverts time and  resources from their primary mission of educating students. Education also suggested we report more on its efforts to  balance burden and benefits when designing information collections. To determine the types of burdens and benefits that schools say federal  requirements create, we conducted eight discussion groups at two  national conferences with a nongeneralizable sample of officials from 51  schools. To determine how Education solicits feedback from stakeholders on  burden, we conducted interviews with Education officials and reviewed  documentation, such as agency web pages and listserv postings used by  Education to inform schools and other interested parties about negotiated  rulemaking and information collections. All references to “statute” or “regulations” are references to the Higher Education Act of 1965 (HEA),  as amended, and Education’s implementing regulations.
Why GAO Did This Study

Postsecondary schools must comply with a variety of federal requirements to participate in student financial aid programs authorized under Title IV. While these requirements offer potential benefits to schools, students, and taxpayers, questions have been raised as to whether they may also distract schools from their primary mission of educating students. GAO examined (1) which requirements, if any, experts say create burden, (2) the types of burdens and benefits schools say requirements create, and (3) how Education solicits feedback from stakeholders on regulatory burden.
GAO reviewed relevant federal regulatory and statutory requirements, and past and ongoing efforts examining postsecondary regulatory burden; interviewed Education officials and 18 experts, including officials from associations that represent postsecondary schools; and conducted eight discussion groups at two national conferences with a nongeneralizable sample of 51 school officials from public, nonprofit, and for-profit sectors. GAO also reviewed documentation associated with Education's requests for public comment on burden for proposed postsecondary information collections and its retrospective analysis of regulations.

What GAO Found

Experts GAO interviewed offered varied opinions on which student financial aid requirements under Title IV of the Higher Education Act of 1965, as amended, are the most burdensome. While no single requirement was cited as burdensome by a majority of the 18 experts, 11 cited various consumer disclosure requirements--such as those pertaining to campus safety--primarily due to the time and difficulty needed to gather the information. Beyond consumer disclosures, 4 experts cited "Return of Title IV Funds"--which requires schools to calculate and return unearned financial aid to the federal government when a recipient withdraws from school--as burdensome because schools find it difficult to calculate the precise amount of funds that should be returned. More broadly, 6 experts said that the cumulative burden of multiple requirements is a substantial challenge. Experts also noted some benefits. For example, an expert said required loan disclosures help students understand their repayment responsibilities.
School officials who participated in each of the eight discussion groups GAO conducted expressed similar views about the types of burdens and benefits associated with Title IV requirements. Participants in all groups said requirements for consumer disclosures and Return of Title IV Funds are costly and complicated. Regarding consumer disclosures, participants questioned the value of disclosing data that cannot be readily compared across schools, like data on graduates' employment, which may be calculated using different methodologies. Participants in four groups found Return of Title IV Funds requirements difficult to complete within the required time frame. Participants also cited some benefits, such as how consumer disclosures can help applicants choose the right school and unearned Title IV funds can be redirected to other students.
Education seeks feedback from schools on regulatory burden mainly through formal channels, such as announcements posted in the Federal Register, on its website, and on a department listserv. However, Education officials said they have received a limited number of comments about burden in response to these announcements. GAO reviewed Education's notices soliciting public comments on burden estimates for its postsecondary information collections--which require the public, including schools, to submit or publish specified data--and found that 65 of 353 notices (18 percent) received comments, of which 25 received comments related to burden. For example, 2 notices received input on the difficulties of providing data requested by the department.

What GAO Recommends

GAO makes no recommendations in this report. In its comments, Education sought clarification regarding types of federal requirements and additional information on its efforts to balance burden and benefits. We provided clarifications and additional information, as appropriate.