Education Dept. Seeks Tougher Enforcement of Ban on Incentive Comp

Earlier this month, U.S. Education Department officials issued a memorandum instructing agency regulators to more aggressively pursue colleges found violating the federal ban on incentive compensation for college recruiters.

Department officials announced Monday that they repealed a 2002 Bush administration memorandum that largely restricted the agency's enforcement of the ban on paying bonuses to recruiters to using fines rather than tougher penalties like limiting a college's access to federal aid, Inside Higher Ed reported.

According to the new memo, signed last week by Under Secretary of Education Ted Mitchell, the department instructs employees to retroactively recoup all of the federal funds an institution received while breaking the rules instead of imposing a fine, which in most cases would be lower. Additionally, the agency may "limit, suspend, revoke, deny or terminate" a college's ability to accept federal loans and grants as a punishment for violating the incentive compensation rules.

 

Related Links

U.S. Department of Education Memorandum

https://www.documentcloud.org/documents/2095024-mitchell-incentive-compensation-memo.html

Inside Higher Ed

https://www.insidehighered.com/quicktakes/2015/06/09/tougher-enforcement-ban-recruiter-bonuses