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The Chronicle of Higher Education
Tuesday, February 19, 2002

Some Groups Say the U.S. Education Department Has Stacked the Deck on a Controversial Regulation

By DAN CARNEVALE

Washington

Some education groups that were not invited to sit on a panel charged with making recommendations on how to revise federal student-aid regulations are accusing the U.S. Department of Education of stacking the deck in favor of changing a rule that affects distance education.

The department convened the panel of education officials last month to recommend whether to change a rule that requires students receive 12 hours of in-class instruction a week in order to qualify for federal financial aid.

Known as the 12-hour rule, the regulation has been criticized by online-education groups, who say it prevents institutions from developing new methods of teaching. A selling point for many distance-education programs is that they offer students the flexibility to study at their own pace.

But other organizations fear that getting rid of the 12-hour rule would open the door to fraud and abuse by illegitimate institutions. The Education Department will decide whether to change the rule after hearing the panel's recommendation.

The department selected representatives for the panel from nominations made by the public. Participants include representatives from the University of Maryland University College, the University of Phoenix, Tarrant County College, the Texas Guaranteed Student Loan Corporation, and a regional accreditation agency called the New England Association of Schools and Colleges.

Some education groups -- including the American Association of Collegiate Registrars and Admissions Officers, the National Association of Independent Colleges and Universities, and the American Council on Education -- tried to get representatives on the panel, but their requests were denied by the Department of Education.

Barmak Nassirian, associate executive director of the association of registrars and admissions officers, says the Education Department has already decided to change the rule. "It's a total outrage," he says. "The fate of the 12-hour rule is politically decided in advance."

The panel was created only to support the department's views, he says. "Obviously, the exercise is a sham," says Mr. Nassirian.

Jeff Andrade, a higher-education adviser to the secretary of education, says that the 12-hour rule will most likely be changed after this rule-making session, but that the change will come because that's what the education community wants, not because of any scheme from the department.

The Education Department has held numerous meetings to discuss the 12-hour rule, Mr. Andrade says, and most education groups want to see it changed. He says he believes that the rule-making panel will reach the same conclusion. "The criticism that somehow it's stacked is just not accurate at all," he says. "The change in the 12-hour rule was reflected by just about every major education group. So the fact that most people on the panel support changing it shouldn't come as a shock."

Mr. Nassirian objects, however, complaining that loan officers and financial-aid administrators are on the panel, along with accreditors. Because the 12-hour rule is a quality standard, the people deciding its fate should be experts in educational quality, not finances, he says. "There are knowledgeable people at the table," he says, "but the process is not legitimate."

But Mr. Andrade says the panel is looking at a number of issues besides the 12-hour rule, including how to handle late disbursements of student loans and regulations on compensating student recruiters.

The National Association of Independent Colleges and Universities was also denied a seat on the panel. But the group plans to attend all the meetings, which are open to the public, and to voice any disagreements it may have with the panel discussion, says Maureen R. Budetti, director of student-aid policy for the association.

Ms. Budetti says that if the 12-hour rule is going to be changed, something must replace it that also protects students from fraud. "We want to find some balance to protect the programs against fraud and abuse," she says. "I don't think anyone has come up with a perfect answer."

But Mr. Andrade says other regulations do a better job of preventing fraud. The 12-hour rule has only encumbered colleges' attempts at creating innovative programs, he says. "You'd be hard pressed to find any instance where the 12-hour rule had helped," he says. "I think most people would say it's been an obstacle."

Becky Timmons, director of government relations for the American Council on Education, says she's disappointed that her group wasn't included in the panel, but she doesn't see any malicious intent on the part of the Education Department. She is disappointed that the panel is smaller and less diverse than previous rule-making groups have been.

"We felt that the whole process would be better served by a mix of practitioners and national organizations," she says. "We're disappointed, but we'll get our opinions known other ways."


Background articles from The Chronicle:


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Copyright © 2002 by The Chronicle of Higher Education