Biden administration gutting online education with new ‘harmful’ guidance, warn experts, lawmakers

Biden administration gutting online education with new ‘harmful’ guidance, warn experts, lawmakers

The Biden administration will now be able to crack down on private companies that contract with colleges and universities to help the schools run their online education programs, raising alarm bells among experts and lawmakers who warned the federal government could stifle remote learning for students.

The Education Department issued guidance last month saying online program managers (OPMs), which are outside contractors that recruit students for and operate schools’ online academic programs, are officially considered third-party servicers, or entities involved with the administration of “any aspect” of an institution’s federal student financial aid.

As a result, these companies can be subjected to stricter federal oversight in a manner that, critics argue, will hurt not only the schools and contractors, but also ultimately the students they serve.

One of the most prominent critics of the department’s new guidance is Rep. Virginia Foxx, R-N.C., chairwoman of the House Committee on Education and the Workforce.

President Biden with Education Secretary Miguel Cardona, right, on Aug. 24, 2022 in the Roosevelt Room of the White House in Washington, D.C.

President Biden with Education Secretary Miguel Cardona, right, on Aug. 24, 2022 in the Roosevelt Room of the White House in Washington, D.C. (OLIVIER DOULIERY/AFP via Getty Images)

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“The growth of technology and its applications in providing students with a well-rounded education is exciting and should be commended,” Foxx told Fox News Digital. “More options for students mean more opportunities for success. For the department to conflate access to online education with rising federal student loan debt diminishes that fact and ultimately hurts the partnerships between institutions, innovators, and the students they serve.”

“The department seems to be more interested in controlling the actions of private companies and creating unnecessary headaches for institutions than it is ensuring students have every tool to succeed academically,” Foxx continued. “I urge the Biden administration to reverse course on this harmful guidance.”

OPMs have long been the target of congressional Democrats and consumer groups, which believe the companies can, through their contractual arrangements, drive up the price of higher education and draw students to low-value academic programs.

Sen. Elizabeth Warren, D-Mass, for example, has raised “concerns about the impact of OPM partnerships on rising student debt loads.”

Under Secretary of Education James Kvaal echoed that sentiment in a statement when the department released its new guidance.

A girl participating in online education training class with teacher and other students using laptop at home.

A girl participating in online education training class with teacher and other students using laptop at home. (iStock)

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“Online education has the potential to meet the needs of many students and lower costs,” he said. “But we are concerned about the growth in loan debt and want to ensure students get value for their money.”

However, many colleges and universities do not have the in-house funding and expertise to develop the online programs they need and need outside help, according to experts familiar with the issue.

OPMs are not the only ones affected by the Education Department’s rules, which critics argue will have a broader negative impact than government officials may realize.

Local police departments helping to compile and analyze campus crime statistics and hospitals providing clinical experiences and “the related educational programing for nurses and other medical professionals” are among the outside entities helping schools through contractual agreements that are being considered third-party servicers, according to the American Council on Education.

The council recently wrote a letter to Education Secretary Miguel Cardona, outlining some of the problems it had with the department’s guidance.

Secretary of Education Miguel Cardona in the Eisenhower Executive Office Building in Washington, D.C., Aug. 8, 2022. 

Secretary of Education Miguel Cardona in the Eisenhower Executive Office Building in Washington, D.C., Aug. 8, 2022.  (REUTERS/Evelyn Hockstein)

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“The broadened definition of a [third-party servicer] appears to cover entities that are beyond the common understanding of that term,” the letter states. “Our hope, if given appropriate time to comment, is to provide the department with a fuller picture of the variety of important institutional arrangements that exist so it may better understand the guidance’s impact … We believe the department would benefit from a deeper understanding of the potential that the guidance could trigger an unintended disruption of services to students currently provided by institutions through these entities.”

The letter was co-signed by 46 other higher education interest groups and associations, including accreditors.

Other experts see the department’s actions as not merely misguided but intentional overreach.

“The Department of Education’s crusade against for-profit colleges is now ensnaring a wide range of service providers,” Adam Kissel, visiting fellow at the Heritage Foundation, told Fox News Digital. “This is a classic case of overregulation by overzealous bureaucrats. Every new rule or interpretation like this makes it harder for colleges to serve their students.”

Whatever the department’s motivation, what is clear is the new guidance will present a host of new hurdles for both schools and companies.

A woman working form home with a laptop.

A woman working form home with a laptop. (iStock)

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One challenge, according to legal experts, is that third-party servicers are legally required to sign a contract with their educational partner to be “jointly and severally liable” to the Education Department for any federal violations.

“Third-party OPMs have been able to hide behind really crafty language in their contracts that keeps them from being responsible for any violations,” Stephanie Hall, a senior fellow at the Center for American Progress, told Inside Higher Ed. “It places all the responsibility on the institution.”

Critics have countered that, beyond creating a major new legal hurdle to overcome, the liability requirements could hurt smaller companies, which unlike bigger players, may be unwilling or unable to indemnify their campus partners. Duane Morris, a law firm that works with colleges, has also noted that while a purpose of the guidance may be to hold OPMs liable, the reverse would also hold true; the school would be liable for any violation committed by the third-party servicer.

Another challenge is that third-party servicers are subject to regular audits, which would require these companies to make all their contracts available to federal regulators.

As a result, OPMs and educational institutions will need to take the extra time and effort to carefully redo all their contracts, and some may not even want to continue their partnerships, according to Tony Guida, an attorney at Duane Morris who focuses on education issues.

A tour group makes a stop at the Sterling Memorial Library on the Yale University campus in New Haven, Connecticut, June 12, 2015.

A tour group makes a stop at the Sterling Memorial Library on the Yale University campus in New Haven, Connecticut, June 12, 2015. (Photographer: Craig Warga/Bloomberg via Getty Images)

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“OPMs will have to be much more intentional about services they provide,” Guida told Fox News Digital. “With more liability, some companies won’t want to take the risk.”

All these changes would be disruptive to the service of providing online education, critics argue, and have a downstream negative effect on student learning and the quality of higher education.

However, in a statement to Fox New Digital, the Education Department defended its guidance, arguing its simply meant to ensure all parties are complying with federal law.

“The updated third-party servicer guidance is intended to provide much needed clarity and transparency on existing requirements regarding companies that work with colleges around the administration of federal student aid,” a department spokesperson said. “It will help ensure these companies are in compliance with federal rules and regulations so that students can make the best possible decisions about their education.”

“The department is seeking public comment on this guidance, and we will carefully review all comments received,” the spokesperson added. “In the meantime, we will work with colleges to ensure the requirements are clear and that they have ample time to meet reporting deadlines.”

The Department of Education Building.

The Department of Education Building. (iStock)

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Perhaps most importantly, however, these voices argue expanding who falls under the umbrella of third-party servicers also increases the control of the federal government.

“If you’re a regulated entity, the Education Department has broad investigative powers over you,” said Guida. “They can request documents, other things of that nature that would make operating much more difficult. And if third-party servicers don’t comply, this guidance could be weaponized against them.”

Supporters of the department’s guidance counter that the current situation is too opaque.

“That will provide important transparency into what’s going on,” Robert Shireman, senior fellow at the Century Foundation, told Inside Higher Ed. “The Department of Education and then the rest of us will learn more about the contracts that institutions have, and there will be greater scrutiny and accountability for the OPM contractors if they are involved in recruiting students.”

A key issue for the Education Department and those critical of OPMs is how these companies share revenue with academic institutions. In many cases, the company receives a share of the schools’ tuition revenue. However, contractors are increasingly moving away from the revenue-sharing model, instead charging fixed fees for specific services. Some observers claim these companies are having the effect of increasing school tuition rates and profiting from it.

Education Secretary Miguel Cardona speaks during the 2022 National and State Teachers of the Year event in the East Room of the White House in Washington, April 27, 2022.

Education Secretary Miguel Cardona speaks during the 2022 National and State Teachers of the Year event in the East Room of the White House in Washington, April 27, 2022. (AP Photo/Susan Walsh, File)

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However, others see such arguments — and the department’s new guidance — as ultimately an effort to combat efforts to profit in the education space.

“With the new guidance released last month, the Biden administration seems to be following in the footsteps of President Obama in trying to extinguish private sector, profit seeking participation in higher education,” Beth Akers, senior fellow at the American Enterprise Institute, told Fox News Digital. “There seems to be an attitude that there is no place for profit seeking in higher education. It’s a nice idea to think that all service providers in education should be motivated by benevolence, but profit is what often motivates major innovation — something desperately needed in higher education.”

“Higher education,” continued Akers, “is a realm that has been remarkably stagnant. Instead of trying to stamp out profit seeking and the innovation that would come with it, the Department of Education should focus instead on ousting poorly performing institutions and programs of study from the federal dole by cutting off student aid (loans and grants) from colleges whose graduates fail to out-earn workers with just a high school diploma.”

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The department initially gave colleges and universities until May 1 to report details of their agreements to the government and 30 days to submit comments on the changes. Following widespread outcry, however, the department said that in response to “confusion,” the guidance would not take effect until Sept. 1, rather than immediately as of last month. It also pushed back the end date of the public comment period through March 29.

“This seems to be a solution in search of a problem rather than the other way around. The department hasn’t identified what harm it’s trying to prevent,” said Guida. “It appears to be a broad regulatory grab.”

Hurricane Ian barrels towards Florida as officials warn of looming catastrophe – live | Florida

Hurricane Ian barrels towards Florida as officials warn of looming catastrophe – live | Florida

Key events

The National Oceanic and Atmospheric Administration has laid out the predicted path of Hurricane Ian as it is expected to hit land this afternoon.

predicted path of Hurricane Ian

Hurricane preparations have been underway at the Big Cat Rescue, the animal sanctuary in Tampa famously featured on Netflix’s ‘Tiger King’ TV series.

Speaking to the Weather Channel, sanctuary head Carole Baskins laid out the measures BCR has taken to prepare for the hurricane.

“Unfortunately if a cat does escape, we have sedation drugs, we have a vet on call. But if a cat starts to exit the property, we have to shoot to kill,” she said.

Around a dozen staff will take shelter in the gift shop and also patrol the sanctuary grounds, the Weather Channel reports.

Additionally, fuel and generators are being kept readily available to ensure that the animals do not miss any mealtimes.

“Usually what happens after a storm is we start getting calls about wild animals running loose in Florida and so if it is an exotic cat that you see, do give us a call and we will help respond with the Florida Wildlife Commission to bring that cat into safety,” Baskins said.

Hurricane Ian’s eyewall ‘coming onshore’

It’s 11am eastern time, and the National Hurricane Center has just released its latest advisory on Hurricane Ian.

The category 4 storm’s “extremely dangerous eyewall” is “moving onshore”, the NHC says, and “will cause catastrophic storm surge, winds and flooding in the Florida peninsula soon”.

The official landfall is not declared until the center of the storm reaches land, which will happen in the coming few hours.

The cities of Fort Myers, Port Charlotte and Cape Coral lie directly in Ian’s path, with effects stretching for hundreds of miles along the Florida coast either side and inland.

“Ian is expected to make landfall in southwestern Florida in the next few hours as a catastrophic hurricane,” the NHC says, repeating its warnings of a storm surge up to 18ft, and winds of 155mph at landfall.

You can follow the latest storm track models and hurricane center’s predictions at their website here.

Hurricane #Ian Advisory 24: Extremely Dangerous Eyewall of Ian Moving Onshore. Ian Will Cause Catastrophic Storm Surge, Winds, and Flooding in The Florida Peninsula Soon. https://t.co/tW4KeFW0gB

— National Hurricane Center (@NHC_Atlantic) September 28, 2022

There’s been a briefing at the headquarters of the Federal Emergency Agency, where administrator Deanne Criswell has been warning Florida residents not to focus just on the areas of Hurricane Ian’s landfall.

“The majority of the state of Florida is in Ian’s crosshairs,” she said.

“We need everyone to heed the warnings of their local officials before during and after the storm.

“These are life saving messages that simply cannot be ignored. Water is dangerous, period, from coastal storm surge to inland flooding. Never drive through standing or moving water, as it takes only a few inches of water to carry away a vehicle.

“Second, if you are taking shelter in an area with rising water levels, quickly find higher ground. And third, never operate a generator in your home. Too many lives are lost each year due to carbon monoxide poisoning.”

Biden: Hurricane ‘no excuse’ for gas price gouging

Joe Biden is warning gas and oil companies not to use Hurricane Ian as an excuse for price gouging.

Speaking in Washington DC at the White House conference on hunger, nutrition and health, the president also said he’d spoken with Florida’s Republican governor Ron DeSantis and made “an absolute commitment” of federal resources to help the state during and after the storm:

I made it clear to the governor and the mayors that the federal government is ready to help in every single way possible.

When the storm passes, the federal government will be there to help you recover, we’ll be there to help you clean up and rebuild to help get Florida get moving. We’ll be there at every step of the way. That’s my absolute commitment to the people in the state of Florida.

Hurricane Ian barrels towards Florida as officials warn of looming catastrophe – live | Florida
Joe Biden delivers a warning to energy companies at the White House on Wednesday. Photograph: Kevin Lamarque/Reuters

Biden has approved DeSantis’s request for a federal emergency declaration and set aside, temporarily at least, bitter political differences between two men who could be rivals for the presidency in 2024.

He said hundreds of Fema (Federal Emergency Management Agency) personnel, thousands of National Guard members and teams of search and rescue teams had been deployed from federal agencies:

They’re already on the ground and ready to help as we speak. Fema has requisitioned literally millions of liters of water, millions of meals and hundreds of generators. We have a scheduled everything we can possibly do.

He closed his remarks with the warning to energy companies:

This warning is to the oil and gas industry executives. Do not, let me repeat, do not use this as an excuse to raise gasoline prices and gouge the American people.

Florida governor DeSantis: ‘Pray for people’

Florida’s governor Ron DeSantis says Hurricane Ian is an historic storm that’s going to leave “an indelible mark” on the state.

He’s just been speaking at a press conference in Lake City as the storm edged closer to Florida’s south west coastline:

Pray for people. This is a major, major storm.

There’s some storms that really leave an indelible impact… this is going to be one of those historic storms and it’s going to shape the communities in south west Florida and have a profound impact on our state.

So we just ask people for their thoughts and their prayers.

DeSantis said Florida had coped with numerous storms in the past, and would deal with this one and move on.

It’s never fun to have damage. It’s never fun to see flooding. It’s never fun to see power interrupted. But you kind of deal with it. And then you move forward.

About 30,000 electricity linemen, numerous urban search and rescue teams and 7,000 National Guard troops from Florida and elsewhere are ready to help once the weather clears, the governor said:

The assets we have are unprecedented in the state’s history and, unfortunately, they’ll need to be deployed.

Here’s the updated official storm surge projection from the National Hurricane Center in Miami, which says up to 18ft of water from the Gulf of Mexico can be expected in some areas close to Ian’s imminent landfall.

In addition, up to 2ft of rain is expected in the next 24 to 48 hours in the most heavily impacted areas.

Hurricane Ian won’t make landfall until this afternoon, but some areas of Florida have already suffered substantial damage from tornadoes spawned in the storm’s outer bands.

On Tuesday night in Broward county, on Florida’s south east coast, several small planes were overturned at North Perry airport, and numerous trees came crashing down.

Zuram Rodriguez surveys the damage around her mobile home in Davie, close to Fort Lauderdale, Florida, on Wednesday morning.
Zuram Rodriguez surveys the damage around her mobile home in Davie, close to Fort Lauderdale, Florida, on Wednesday morning. Photograph: Joe Cavaretta/AP

Florida Power and Light, the state’s largest energy provider, is warning that power could be out for “days” for those in Ian’s path.

In Tampa, hundreds of residents have been evacuated from several nursing homes and hospitals in anticipation of power loss.

Fema chief: ‘This is going to be a catastrophic impact’

One of the mantras of major hurricanes is that you can shelter from the wind – which is up to 155mph in the case of Hurricane Ian – but you can’t hide from the water. Officials fear the storm surge of up to 18ft, predicted by the National Hurricane Center in Florida, will be deadly.

Deanne Criswell, administrator of the Federal Emergency Management Agency (Fema) has just been on CNN to explain the risk:

This is going to be a catastrophic impact, and not just where we’re going to see the storm make landfall.

We’re really concerned about all of the inland flooding because it’s bringing with it a lot of rain and it’s going to move slowly, which means people in the path are going to experience the impacts for a long period of time.

My biggest concerns is the water, the storm surge and flooding. Water is one of the leading causes of death, direct fatalities, in these storms.

We know that a lot of people have evacuated but we also know there’s people that haven’t.

Criswell says a “robust search and rescue capability” of teams from several emergency response agencies including firefighters and the US coast guard has been assembled, and is stationed in Miami, on Florida’s south-east coast.

They will go in when it’s safe to do so, which might be before the storm has fully passed, she says:

As the storm moves, and as it’s safe for our search and rescue teams to go in, they’ll start searching those areas to see and assess damage, but most importantly look for people that may need help getting out of the area.

But just because they’re out doesn’t mean that individuals should be out. They need to stay put until the storm completely passes. And then when they do go out they need to be really cautious.

So many dangers that are going to be out there, with the flooding, the water, the downed power lines.

Good morning, it’s Richard Luscombe in Miami, Florida, welcoming you to our live blog covering the imminent landfall of Hurricane Ian, one of the most powerful storms ever to strike the US mainland.

Millions of Florida residents are in the path of the deadly monster storm, and officials are warning of a looming catastrophe after Ian strengthened overnight to just shy of maximum category 5 status, pushing out winds of 155mph at its center.

The hurricane claimed several lives as it tore through Cuba, wrecking western communities and knocking out power to the entire island.

Now Ian has its sights on an afternoon landfall on the south-west coast of Florida, where a predicted storm surge of up to 18ft is liable to cause substantial flooding.

The Florida governor, Ron DeSantis, told coastal residents in Ian’s path who haven’t already fled that it’s too late to do so now. “It’s no longer possible to safely evacuate,” he said, urging them to shelter in place.

We’ll bring you all the developments as they happen.

Meanwhile, please take a read of our news story here: