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Virginia Foxx Calls on Miguel Cardona to Maintain Guidance on Tuition-Share Agreements with OPMs

Rep. Virginia Foxx, chair of the House Education and Workforce Committee, has urged the Biden administration to uphold the 2011 guidance governing tuition-sharing agreements between colleges and online program management companies (OPMs). Foxx emphasized that any changes to this guidance could threaten established public-private partnerships in educational technology.

Concerns About Regulatory Changes

In a letter to Education Secretary Miguel Cardona, Foxx expressed concerns regarding potential regulatory updates to the guidance, asserting that it has played a pivotal role in the expansion of the online program management sector. The 2011 guidance has permitted institutions to engage in tuition-sharing agreements while adhering to federal regulations that prohibit incentive-based compensation for student recruitment.

Impact on Public-Private Partnerships

Foxx stated that altering or eliminating the guidance would dismantle a longstanding principle supporting public-private partnerships in educational technology. The OPM industry has experienced substantial growth since the guidance was implemented, enabling colleges to rapidly enhance their online course offerings.

Controversies Surrounding Partnerships

Despite this growth, controversies persist regarding these partnerships. Critics, including lawmakers and consumer advocacy groups, have raised concerns about possible predatory recruiting methods employed by OPMs, as well as the potential for tuition-sharing arrangements to drive up costs for students. Some stakeholders have urged the Department of Education to reconsider or even rescind the 2011 guidance entirely.

Discussions on Guidance Updates

In her letter to Cardona, Foxx referenced discussions within the education community that suggest the Department of Education may be considering updates to the guidance prior to the inauguration of the next administration.

Department of Education’s Position

A spokesperson for the Department of Education confirmed that Foxx’s letter was received and is under review, although no comments were made regarding potential changes to the guidance.

Support for OPM Collaborations

Foxx criticized the idea of modifying the existing guidance and noted that strong support from higher education institutions for OPM collaborations should ensure regulatory consistency in these partnerships.

Industry Perspective

An industry representative supported this viewpoint, indicating that there is a continuing need for flexibility and innovation in higher education to expand opportunities and align with labor market demands. The representative highlighted the critical role that these partnerships play in providing quality education without leading to increased costs.

Concerns from Educational Institutions

While the 2011 guidance has received backing from many educational leaders, some institutions have distanced themselves from their OPM collaborations or expressed doubts about the effectiveness of these partnerships. Recent reports have indicated dissatisfaction among faculty in programs managed by OPMs, particularly concerning the quality of education and support provided.

Financial Restructuring of OPMs

In a related event, 2U, a notable OPM, underwent financial restructuring after filing for bankruptcy due to significant debt. During this process, partners such as Fordham University raised concerns about 2U’s performance, citing issues with program quality and student placement.

Ongoing Discussions and Future Implications

The ongoing discussions surrounding the guidance and the future of tuition-sharing agreements continue to be a significant topic in debates over education policy and partnerships within the sector.

(Source: Higher Ed Dive)

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