A proposed rule change by the Department of Education, which was likely to have delivered a major setback to the growing popularity of Inclusive Access and Equitable Access (IA/EA) programs for college students, has been tabled. The programs allow students to pay for their course materials as part of their tuition or as an additional fee in order to have all their materials available for the first day of class.
In January, the DOE began holding hearings on ways to help make paying for postsecondary education more affordable. One avenue the DOE was examining was changing its Cash Management rule, which would have moved the IA/EA programs from an opt-out option for students to opt-in.
The proposed change was vigorously opposed by nearly all parts of the higher education community, since it would likely drop the participation rate among college students and thereby undermine the economic incentive for publishers to participate in the program. In hitting back against the proposal, publishers, college stores, college faculty members, and administrators stressed that if the change were implemented, the price of college materials, which has been declining in recent years, would almost certainly begin to rise again—the exact opposite result the DOE was seeking.
Among those leading the fight against the change were the National Association of College Stores (NACS) and the Association of American Publishers (AAP). Both organizations were concerned that the DOE was rushing through the review process in hopes that the rule change would go into effect by next July. But when the DOE released its proposed regulation changes late last month, it said that it would not post the Cash Management revision for public comment until next year, meaning that any proposed change would not go into effect until 2026.
In a blog post, James Kvaal, Under Secretary of Education, outlined the reasoning for the delay. “This schedule allows us to take additional time to carefully consider these important, complicated issues and refine solutions that address important challenges for students while balancing the need for quality oversight and improved student protections with the burden on institutions and changes impacting college accrediting agencies,” he explained.
“Getting our accountability work right is critical,” Kvaal continued. “For students and families, postsecondary education is likely the second largest purchase they ever make after buying a home. High-quality postsecondary programs can unlock a lifetime of opportunity and financial security, while poor-performing ones can leave students worse off than if they had never attended. We also have an obligation to make sure the tens of billions of dollars in taxpayer funds that support postsecondary education each year are well spent.”
He added: “At the same time, innovation and creativity within our nation's postsecondary education system is critical to ensuring we increase rates of college going and completion, as well as bending the cost curve of higher learning.”
Representatives for both NACS and the AAP praised the decision to devote more time to studying the Cash Management rule before moving forward. “NACS applauds the U.S. Department of Education for working diligently to strengthen the cash management regulations with regard to transparency and student consumer protections, while at the same time supporting the progress made in recent years in making course materials, supplies, and equipment more affordable, timely, and accessible for all students, ” said Richard Hershman, VP of government relations
Kelly L. Denson, SVP of education policy and programs for the AAP, had a similar take, saying the AAP was “thrilled” that the DOE was taking a more careful look at the Cash Management rule. She said that it would be crushing if the “resounding success” IA/EA has achieved in lowering courseware costs would be ripped apart by a hasty change. She added, however, that the AAP would welcome the government’s help in ensuring that college billing systems are easier for students to navigate.
Given that the Biden Administration will not be in power next year, it remains an open question whether a new look at the Cash Management rule will take place under the next president.
