Federal Education Department issues late-term distance-education rules; OPM guidance placed on temporary freeze

Van Davis, executive director of WCET, told the Higher Education Coordinating Board—s Learning Technology Advisory Committee on Jan. 10 that the U.S. Department of Education issued several distance-education regulations and a Dear Colleague letter addressing third-party servicers and online program managers late in the previous administration.

Davis said he and his colleagues were "very surprised that the department decided to move forward, with these regulations, but we were also pleased to see that some of the more problematic aspects that many of you had submitted comments on, were not moved forward." He described the final rules as removing previously proposed items such as requirements for state authorization reciprocity, certain accreditation changes and proposed cash-management rules tied to inclusive access.

Why it matters: the rules change what institutions must track and report about distance education and how third-party providers may be portrayed to students, while a short federal review window could alter or pause those changes.

Davis summarized the major regulatory outcomes. The department moved forward with a definition of distance education aligned primarily with the IPEDS definition and removed a proposed "residency experience" phrase and a proposed "virtual location" construct. It withdrew proposed rules that would have removed Title IV eligibility for asynchronous clock‑hour programs and a proposed requirement to take attendance in distance courses. The Department did, however, advance new requirements for reporting distance-education enrollments; Davis noted the reporting requirement would not take effect until July 1, 2027.

Davis also described a Dear Colleague letter interpreting 34 CFR 668.71 that focuses on misleading statements about program features and third-party roles. He quoted the letter's examples of prohibited inaccuracies: identifying an employee of a third-party servicer as if they worked for the eligible institution; presenting a sales representative or recruiter as an academic adviser or "counselor"; and representing an online program or its components "as the same as" a residential or campus-based version.

Timing and review: Davis explained that because the final regulations and the Dear Colleague letter were issued so late in the administration, they are subject to the Congressional Review Act and a newly issued executive order that places a 60-day regulatory freeze on rules and guidance not yet in effect. He said the freeze applies immediately to the OPM Dear Colleague letter and that the distance-education definition will take effect July 1, 2026, with enrollment reporting effective July 1, 2027, unless future action changes that.

What institutions should do now: Davis advised institutions to "watch what's happening with the department very closely" and to ensure that staff overseeing OPM contracts are aware of the Dear Colleague letter. He recommended reviewing the published distance-education regulations and preparing for reporting requirements even though implementation timelines are delayed and agency staffing is in flux.

Davis and others emphasized uncertainty: many political appointee posts at the Department of Education remained unfilled at the time of the briefing, and Davis said that could affect whether and how the new administration implements or revises the rules.

Ending: WCET and the State Authorization Network will continue to monitor developments and publish updates; Davis pointed meeting members to WCET—s public Frontiers blog for ongoing analysis and noted the coordinating board will track changes and brief institutions as needed.