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Guidelines issued on using federal financial aid for competency-based programs
February 15, 2024
Traditional postsecondary programs may not work for every student and for every career and, as such, more and more schools are considering alternative programs.
However, many schools are wondering if these programs are eligible for Title IV financial aid and to answer that question, the Department of Education issued a Dear Colleague Letter (DCL) this week to provide specific guidance on the question.
These competency-based education (CBE) programs provide students with a way to acquire skills and knowledge at an individual pace, earning a degree or other credential.
In the letter, the Department said credit or clock-hour CBE programs must be administered under normal statutory and regulatory provisions.
However, direct assessment CBE programs must follow specific guidelines as outlined in the DCL for participation in federal financial aid programs. Direct assessment programs are those in which clock or credit hours are not measured but students are assessed to determine competency of a subject matter.
In the DCL, the Department outlines the regulations and the specific steps a school must take for approval of its direct assessment CBE program.