Many colleges and universities already have complaint systems in place, government sources and observers say. But in light of debacles such as the costly closure of Corinthian Colleges—a for-profit college company that closed and filed for bankruptcy earlier this year amid allegations of fraud—the complaint systems have taken on added importance.
The federal government recently issued loan forgiveness to former Corinthian students—something that could cost taxpayers as much as $3.5 billion.
Jamienne S. Studley, Deputy Under Secretary at the U.S. Department of Education, said enforcement of the requirement for the complaint systems, which the department has held off on for several years, is an “important step and a timely one” to ensure program integrity. The complaint systems come under the purview of “state authorization” regulations that require colleges and universities to be authorized by states in order to enroll students who get federal financial aid.
“What we hope is that this will be a reminder to states about the part they can play in all of this,” Studley recently told a gathering of the Council for Higher Education Accreditation.
Studley said state attorneys general are using the information they get from the complaint systems to “help pursue opportunities for improvement and cleaning up the system.”
Studley said it will become increasingly important for states, accreditors and the federal government—often referred to as the “triad” when it comes to regulating colleges and universities—to communicate better to prevent costly problems that could hurt students.