February 9, 2001

Report to Congress Says Financial-Aid Rules Are Hurting Distance Programs

By DAN CARNEVALE

In a report sent to Congress last month, the U.S. Department of Education said that a lack of flexibility in financial-aid regulations hurts the advancement of distance education.

Regulations restricting which institutions can provide federal financial aid are complex and inhibiting, the report says, and should be updated to reflect the growth of alternative education.

Those rules mentioned include one that prevents institutions offering more than 50 percent of their courses at

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