Advocacy Alert: USDE Announces Final Regulations Regarding Withholding Transcripts, Financial Value Transparency, and Gainful Employment

The Middle States Commission on Higher Education (MSCHE) would like to bring to your attention regulatory updates regarding prohibition on transcript withholding regulations, financial value transparency (FVT), and gainful employment (GE).

In October 2023, the United States Department of Education (USDE) finalized new regulations regarding transcript withholding policies as part of a larger package of regulations to promote accountability and consumer protection. These institutions will be prohibited from withholding a student’s transcript in circumstances where the student’s credits or clock hours were paid for with title IV aid and where all institutional charges have been satisfied. The final regulation also prohibits the withholding of transcripts for students at institutions that are at risk of closure or deemed not financially responsible. The regulation went into effect on July 1, 2024. Some states already maintain prohibitions on transcript withholding, but the new regulations apply to any institution receiving title IV funds.

USDE’s new set of regulatory requirements regarding FVT and GE also went into effect July 1, 2024. USDE designed an FVT and GE framework that will offer students in all programs at all institutions details on the earnings outcomes, borrowing amounts, cost of attendance, and sources of financial aid to help students make informed decisions. Initially, institutions were required to report a set of FVT and GE program specific and student specific data on July 31, 2024. While the regulations still took effect on July 1, 2024, the initial reporting deadline for reporting of all program and student specific data required by the regulation has been extended from July 31, 2024, to October 1, 2024. USDE has developed an informational FVT and GE resource page and an FVT and GE user guide to assist institutions with these new requirements.