New and Updated Financial Value Transparency and Gainful Employment FAQs Now Available Knowledge Center

A lot of people who are responsible for dealing with the GE & FVT regulations are still figuring out the details, and even when the details are known, it is difficult to communicate with others what parts of the regulations apply to which programs. The Department uses address information provided by the student on their initial FAFSA submission to determine whether the student is from the State in which the institution is located. If you have questions that have not been addressed, please submit them to the FVT/GE Questions mailbox at and include the name and OPE ID number of the institution. ED stated that it promulgated this final rule pursuant to sections 1001, 1002, 1003, 1070g, 1085, 1088, 1091, 1092, 1094, 1099b, 1099c, 1099c-1, 1221e-3, and 1231a of title 20, United States Code. The material contained in this communication is informational, general in nature and does not constitute legal advice. The material contained in this communication should not be relied upon or used without consulting a lawyer to consider your specific circumstances.

• ED further stated that additional estimates of certain reporting costs will be cleared at a later date through a separate information collection.
• The higher education landscape is constantly evolving and is undergoing a significant transformation with the introduction of the Financial Value Transparency and Gainful Employment Act (FVT/GE).
• An institution must update any certification within 10 days if there are any changes in approval for a program, or other changes that render an existing certification no longer accurate.
• The institution would be prohibited from disbursing Title IV funds to students in pertinent GE programs until and unless the student acknowledges the program’s potential future loss of eligibility.
• For example, the Department may use the 4-year cohort period data to calculate the rates for a program in one year and it may use the 2-year cohort period data to calculate the rates for the same program in another year.

Overview of Reporting Requirements

For example, a student enrolls in a 900 clock-hour program, incurring direct charges of $11,500 (assume the institution bills up front for the entire program). The student’s financial aid package includes a Federal Pell Grant of $7,395 financial transparency and a Direct Subsidized Loan for $3,500 ($3,445.05 net disbursement amount). They are placed on an institutional financing plan for the remaining $659.95 of institutional charges.

What is the difference between the FVT and GE regulations?

On July 1, 2024, final regulations for Financial Value Transparency and Gainful Employment (FVT/GE) requirements became effective. These requirements apply to most educational programs that are eligible to participate in the student financial assistance programs authorized under Title IV of the Higher Education Act of 1965, as amended (HEA). Despite the challenges, the FVT/GE has the potential to reshape the higher education landscape by fostering greater transparency and accountability for prospective and current students. It also presents a unique opportunity for institutions to prove commitment to student success. Institutions that embrace a data-driven approach can meet regulatory reporting requirements while enhancing their reputation and attracting prospective students. By leaning into data to create a compelling story, institutions can build trust with students and families.

• To assist you in understanding how your institution may be impacted—and what you need to do now to prepare for compliance–we provide a high-level overview of the Final Rule below, as well as specific steps your institution should consider down the long and winding road to prepare for these new requirements.
• This amount should be the actual amount included in a particular student’s cost of attendance for that award year, in accordance with the institution’s process for developing the allowance.
• The program as described is neither a GE Program nor an Eligible Non-GE Program that the institution is required to report on.
• If you sign up for the Clearinghouse’s FVT/GE reporting solution, you should not follow the NSLDS SAIG instructions.
• The Department is continuing to address questions and concerns raised about the Completers Lists.
• The Department will generally calculate these metrics for each Title IV program annually, based on information about eligible program completers obtained from the institution, matched against data reflecting the earnings of those program completers obtained from a yet-to-be-named agency.
• Student records appearing on this list were previously reported by your institution to the Clearinghouse on a DegreeVerify transmission, but do not have the corresponding program-level Graduated (G) enrollment status required for compliance reporting to the NSLDS.

How long do I have before I must upload my data for the Clearinghouse?

In addition to establishing these new metrics and a website to house this information for the public, the Final Rule establishes “passing” thresholds. First, the Final Rule advances a new Financial Value Transparency policy intended to provide prospective students with consumer-minded data about important financial outcomes for individuals who complete Title IV programs. The reconciliation is performed for DegreeVerify records the Clearinghouse received from your institution on or after January 1, 2015, that do not have a corresponding Graduated (G) enrollment status at the program level. The Clearinghouse will offer an augmented supplemental process for institutions to use to provide us with their standard or transitional reporting in compliance with the deadline. This approach will 1) mitigate the burden on institutional IT teams to implement the needed student informational system (SIS) changes and 2) provide institutions with additional reporting flexibility so they can provide the new data elements and discrepancy resolutions payroll to the Clearinghouse. Going forward, the Clearinghouse will collaborate with all major SIS vendors to determine how institutions can best integrate the additional data elements into their reporting processes.

Federal Regulation Reporting (Part : Tips and Strategies for FVT/GE Reporting

FVT/GE reporting requirements include data elements that typically are housed in multiple sources, managed by different departments, and not easily accessible for reporting. We understand that these new reporting requirements come at a time when most institutions have no resources to spare to build and support complex new compliance processes. ED’s analysis of benefits included a discussion of the anticipated benefits to students, institutions, state and local governments, and the federal government.

• The report selection type you choose will apply to your institution for the next six years of reporting to the NSLDS.
• Institutional warnings for GE programs that could become ineligible in the next award year must be provided to students as of July 1, 2026.
• An institution should be reasonably be aware of such private education loans and should include them in a student’s financial aid package.
• Institutions can now showcase their commitment to student success and financial well-being.
• They also do not include awards or other amounts provided to students that are not included in a student’s financial aid package as estimated financial assistance.
• For schools participating in the Clearinghouse’s FVT/GE reporting solution, our secure site FVT/GE platform will display a counter (a “Count Down”) that visually tracks the delivery timeframe for your institution and is pre-set to start at 50 days.

Annual Loan Payment

Institutional grants and scholarships do not include funds that are provided to students by outside entities such as unaffiliated private organizations or individuals. They also do not include awards or other amounts provided to students that are not included in a student’s financial aid package as estimated financial assistance. Under the HEA, an eligible Title IV program must lead to a degree, certificate, or other credential awarded by the institution. There is, however, an exception for a program that is at least two-academic years in length and that is acceptable for full credit toward a bachelor’s degree. This exception is provided to allow students who are enrolled in non-credential transfer programs (generally offered by community colleges) to be eligible for Title IV aid as they prepare to transfer to a four-year degree program. Such programs are also not Eligible Non-GE Car Dealership Accounting Programs because they do not lead to a recognized credential provided by the institution.