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Department refines value-added earnings rules for online programs and flags operational questions
Summary
The Department of Education added an exception to value-added earnings adjustments for programs with predominately out-of-state students, proposed using FAFSA residence as a practical proxy for student location, and said it will publish directed questions and operational guidance to resolve multi-campus and employer-site complications.
The department detailed a change to the value-added earnings calculation intended to avoid mismeasuring programs offered primarily online or to geographically dispersed students. Under the new draft language, if more than 50% of enrolled students in a program reside outside the state where the institution is located, the department will not apply a state or regional price-parity adjustment to the program's median earnings; instead, earnings will be compared using a national parity.
David Musser said the…
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