Newsroom
Compliance reminder issued by Department - possibly prompted by staffing shortages
December 14, 2023
No pressure – but the Department of Education is reminding institutions of their program participation responsibilities, especially when it comes to the issue of compliance.
In a December 13 Electronic Announcement (EA), the Department’s Office of Federal Student Aid (FSA) issued a Bulletin, reminding institutions of their “obligation to establish and maintain appropriate compliance management systems and policies as part of the responsibilities required under their Program Participation Agreement (PPA) and to foster an overall culture of compliance to prevent violations and minimize harm to students and taxpayers.”
In the announcement, FSA acknowledged that it “has heard reports of ongoing challenges with employee retention and staffing in financial aid offices, and that some financial aid offices are struggling to remain administratively capable.”
According to FSA, senior level administrators at these institutions are encouraged to address hiring and retention efforts and ensure that they have an appropriate compliance management system and staff relative to the size, Title IV volume, and complexity of the institution.
The Announcement also contains guidance on the hallmarks of an effective compliance management system.