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Education Department to Formally Rescind 2023 Dear Colleague Letter on Third-Party Servicers

The U.S. Department of Education announced it will formally rescind the 2023 Dear Colleague Letter (DCL) on Third-Party Servicers (GEN-23-03) by Nov. 18, 2024. As explained in our prior Feb. 21, 2023, and April 12, 2023,...more

CFPB: For-Profit School Misrepresented ISAs, Made False Claims About Grads’ Employment Rates

On April 17, 2024, the Consumer Financial Protection Bureau entered an order against BloomTech Inc., which does business as the Bloom Institute of Technology, and its CEO, Austen Allred, for mischaracterizing BloomTech’s...more

NCAA Allows Schools to Assist NIL Efforts, Expands Options for Transfer Student-Athletes

On April 17, 2024, the National Collegiate Athletic Association’s Division I Council unanimously adopted a proposal that allows NCAA member schools to provide assistance in supporting name, image and likeness (NIL) activities...more

Fifth Circuit Continues Nationwide Preliminary Injunction Against “Almost Certainly Unlawful” Borrower Defense Rule

On April 4, 2024, the U.S. Court of Appeals for the Fifth Circuit issued its opinion in CCST v. U.S. Dept. of Education, reversing the order of the U.S. District Court for the Western District of Texas, and granting a...more

Education Department Extends Gainful Employment Reporting Deadline, Publishes Milestones Schedule

On March 29, 2024, the U.S. Department of Education published an electronic announcement delaying the reporting deadline for institutional data related to the Gainful Employment (GE) and Financial Value Transparency (FVT)...more

Fourth Circuit: School’s 501(c)(3) Status Does Not Constitute Federal Financial Assistance for Title IX Purposes

On March 27, 2024, in a long-awaited decision that carries major implications for 501(c)(3) organizations and independent schools, the Fourth Circuit held that an independent school’s 501(c)(3) tax-exempt status did not...more

SCOTUS Permits Military Academy to Use Race as a Factor in Student Admissions — for Now

Affirmative action admissions developments in the higher education sector continue, as the U.S. Supreme Court recently declined to issue an emergency injunction pending appeal that would have prohibited the U.S. Military...more

District of Columbia Enacts New Pay Transparency Law

On Jan. 12, 2024, Washington, D.C. Mayor Muriel Bowser signed a new pay transparency act. The act takes effect on June 30, 2024, and requires D.C. employers to post salary ranges and benefits information for open positions,...more

Sovereign Immunity Available in Virginia Human Rights Act Cases

On Sept. 19, 2023, the Virginia Court of Appeals held in Fogleman v. Commonwealth of Virginia, that the General Assembly has not waived sovereign immunity under the Virginia Human Rights Act (VHRA), either expressly or by...more

DOJ and ED Issue Guidance on Supreme Court Affirmative Action Decision

On Aug. 14, 2023, the U.S. Departments of Justice and Education (DOJ and ED) issued guidance to institutions of higher learning concerning the U.S. Supreme Court’s landmark decision in Students for Fair Admissions, Inc. v....more

College Legacy Admission Preferences Called Into Question in New Challenge

On July 3, 2023, just days after the U.S. Supreme Court’s landmark decision in Students for Fair Admissions, Inc. v. President & Fellows of Harvard College (SFFA), a new challenge is arising related to collegiate admissions....more

U.S. Supreme Court SFFA College Affirmative Action Ruling: Implications for Corporate DEI

On June 29, 2023, the U.S. Supreme Court struck down the affirmative action student admissions practices at Harvard College and the University of North Carolina at Chapel Hill (UNC) in a pair of cases brought by Students for...more

Virginia Court Holds School Board Immune Virginia Human Rights Act Claims

On June 13, 2023, the City of Norfolk Circuit Court held in Jordan v. Sch. Bd. of the City of Norfolk that sovereign immunity bars a plaintiff’s claims against the Norfolk City School Board for allegedly violating the...more

U.S. Supreme Court to Decide Whether School Board Members May Block Parents on Social Media

As social media and K-12 education issues continue to evolve, on April 24, 2023, the U.S. Supreme Court granted certiorari in a case concerning an interesting, yet important issue: Under the First Amendment, when can elected...more

Department of Education Proposes Stricter Gainful Employment Regulations

On May 19, 2023, the Department of Education (ED) published in the Federal Register proposed regulations concerning gainful employment (GE), threatening to cut off federal financial aid for approximately 1,800 career training...more

Evolving Legal Framework Regarding Transgender Students

On April 6, 2023, the U.S. Supreme Court and the U.S. Department of Education addressed the treatment of transgender students in sports. Specifically, in West Virginia, et al. v. B.P.J., by her next friend and mother,...more

Education Department Delays Sept. 1 Effective Date of Dear Colleague Letter on Third-Party Servicers

On April 11, 2023, the U.S. Department of Education announced in a blog post that it will delay the Sept. 1, 2023, effective date of its Dear Colleague Letter on third-party servicers and institutions (DCL). The new effective...more

U.S. Department of Education Launches Secret Shoppers Program to Investigate Colleges and Universities

Federal Student Aid’s Office of Enforcement announced a “secret shoppers” program as one of many tools to evaluate a college or university’s recruitment, enrollment, financial aid and other practices. The secret shoppers...more

Education Department to Hold Owners, Individuals, Board Members Liable for Higher Education Institutions

On March 2, 2023, the U.S. Department of Education announced it will hold individuals representing corporations or other legal entities, including a member of the board of directors or a chief executive officer, personally...more

Department of Education Guidance Expands Possible Liability for Private Companies That Contract With Higher Education Institutions

On Feb. 15, 2023, the U.S. Department of Education issued guidance that significantly expands the definition of “third-party servicer” to include services completed by many online program managers (OPMs) and entities...more

Supreme Court to Revisit De Minimis Cost Test for Religious Accommodations Under Title VII

On Jan. 13, 2023, the U.S. Supreme Court agreed to consider whether the de minimis cost test for religious accommodations under Title VII of the Civil Rights Act of 1964 should endure. The Supreme Court granted the petition...more

10th Circuit Rules on Class Action to Compel Creation of Girls-Only High School Football Team

On Jan. 4, 2023, the 10th U.S. Circuit Court of Appeals made two important findings in a class-action case seeking to compel the creation of a girls-only football team for high-school girls....more

D.C. Voters Approve Eliminating the Tip Credit System

On Nov. 8, 2022, Washington, D.C., voters overwhelmingly approved "Initiative 82," which, once certified and implemented, will eliminate the tip-credit system in D.C. With this new law, D.C. joins the ranks of seven states...more

CFPB Charges Schools With “Abusive” Act of Denying Academic Transcripts to Students With Debts

The Consumer Financial Protection Bureau’s recent guidance regarding withholding transcripts from students with debts revealed that the CFPB is using a broad definition of “private education loan” that may apply to the...more

Recent Court Opinions Suggest Independent Schools May Be Subject to Title IX

Historically, most independent schools have not been subject to Title IX of the Education Amendments Act of 1972 because they do not accept federal funds. As a result, many independent schools carefully evaluate whether to...more

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