50% Rule and Title IV

Since 1992, there has been in effect the so-called "50% rule" that excluded from Title IV funding all schools which taught 50% or more of their classes online or via correspondence. I have heard that this law has now changed, that the 50% rule has been abolished and that accredited online schools may now qualify for Federal Title IV funds. Does anyone know for a fact what the state of the law is? Has the 50% rule been abolished? Are internet schools no longer barred from receiving Title IV? If not, will this be in effect at some time in the future?

 

I just enrolled in AMU which is part of the American Public University System. Until recently they were only accredited by DETC, but recently the received accreditation through North Central. Their programs are 100 percent online, yet recently they were approved for Federal Student Aid, both for grants (undergraduate level) and loans. Their tuition is very reasonable at $250 per hour but it will be raising to $275 at the first of the year. It is one of the lowest priced RA institutions in American.

 

I called the Dept. of Education and they advised that if a school has more than 50% of its courses via telecommunications, which includes internet, it is not eligible for FSA funding. So, I am wondering how this American Public University qualified.

 

LegalEducator,

Please see the following information from their website. I don't know how they do it, but it is a good deal for me. If you are studying at the undergraduate level, they even throw in FREE BOOKS!

http://www.amu.apus.edu/index.htm

Programs - 100% Online
Over 50 Associate, Bachelor's and Master's Degrees
» Homeland Security » Sports & Health Sciences
» Intelligence » Public Administration
»

Emergency & Disaster Management »

Transportation &
Logistics Management
» History » Security Management
» National Security » Public Health
» Criminal Justice » IT Management
» Business Administration » More...

____________________________________________________

http://www.apus.edu/FSA/AvailablePrograms/index.htm

Available FSA Programs

Federal Grant Programs
Federal Loan Programs
Federal Grant Programs

 

You called a government agency and got an incorrect answer? I'm aghast! I can't believe that any government official would be unaware of what's going on in their agency.

If you'll call the IRS I bet they have a lot of correct answers...

[sarcasm intended - sorry, couldn't resist...]

 

I hope you all are right. However, she referred me to some regulations posted on their website, and what I read confirmed what she said. This is very confusing.

 

Can anyone here cite the exact reference in the new law that permits 100 per cent online schools to qualify for Title IV? The Dept. of Education has a website with all the regulations.

 

What makes you think it's "one of the lowest priced RA institutions in America"? They are very expensive compared to some other undergraduate schools. My home school is somewhere around $165 per credit hour for upper-level classes (300 & 400 series) and around $145 per credit hour for lower-level classes (100 & 200 series).

AMU's credit hour scheme is based on the maximum military tuition assistance (TA) allowed per credit hour ($250) and per class ($750). I can't speak for other services, but the Corps allows each Marine up to $4500 per year. If I attend AMU, I can take six classes a year. If I take classes at my home school, I can take ~9 classes a year. Heck, if I go to LSU, at $229 a class I can take almost 20 classes a year. AMU gives students a "grant for books" in the hopes that people don't realize how friggin expensive they are to attend. I'd rather pay for my own books at Amazon or Half.com and take more classes than get free books and have to pay my own way after 6 classes.

As bad as it sounds, I try to talk Marines out of attending AMU. There are other schools out there that have a better reputation, give the same or better education, and cost a LOT less. I'll admit I do not know much about AMU beyond what I have read, but I think Marines can get as good a product elsewhere for less.

I'm wondering if their 2007 increase in prices means that military TA will be raised.

 

Is this it?

http://www.nasfaa.org/publications/2006/greconciliationsummary020206.html

SEC. 8002. MODIFICATION OF 50/50 RULE.

Distance Education coursework is excluded from the rule.

 

I am aware of all the literature stating that such a change has been made. Yet, in the regulations themselves, I can't find it. Tomorrow when I get to the office, I will post the exact regulations that the Dept. of Education pointed out to me claiming, in essence that the 50% rule is still in effect.

 

Was this the regulation they pointed you to (34 CFR 600.7)?

If so, the publication date on that was July 1, 2003.

 

You are correct

Yes, that is exactly correct. The person answering the phone at the Dept. of education is citing 600.7 and 668.38 as reasons for stating the 50% rule is still in effect. Perhaps you know the citation for the new rule that abolishes the 50% rule? Any help would be greatly appreciated.