The U.S. Department of Education today published final regulations that eliminate or change burdensome or unnecessary federal student aid regulations.

U.S. Education Secretary Rod Paige hailed the major deregulation effort as an example of the Bush Administration's commitment to improving the department's federal student aid programs. "Financial aid administrators, students, and others on the front lines of postsecondary education told us what needed to be changed...and we listened. They let us know -- loud and clear -- that the student aid programs are too complicated and need improvement. This effort shows what we can achieve by working together and putting the interests of students first," Paige said.

U.S. Rep. Howard P. "Buck" McKeon (R-Calif.), chairman of the House Education Committee's Subcommittee on 21st Century Competitiveness and Lifelong Learning, initiated the FED UP project and the effort to reduce federal red tape in higher education programs. McKeon called on the public and those in higher education to identify where regulatory reform was needed, and his solicitation for input resulted in thousands of comments. Last fall, Secretary Paige supported the reform effort and agreed that the department would consider all suggested changes from the higher education community that did not require legislation and would not increase program costs.

The new regulations make a number of changes, including eliminating the double-standard regulation known as the "12-hour rule," that restricts financial aid for students enrolled in distance education and other non-traditional term programs. The 12-hour rule was one of a number of regulatory barriers identified by the congressionally chartered, Web-based Education Commission in its December 2000 report. The commission concluded that these regulations discourage innovation and may "have the unintended effect of curtailing educational opportunity among thousands who seek financial aid for college." Paige said the change would help colleges better serve students in these programs, which includes many working adults financing their education.

"These changes will help schools better serve needy students," Paige said, "and we owe a great deal to the dedicated individuals throughout higher education who helped craft them. We look forward to working together with Congress and the higher education community on legislative changes to the Higher Education Act next year."

Top

Back to November 2002