Concerns incentive compensation and contracts between online program management companies and institutions of higher education and certain proprietary institutions.
Impact
The proposed legislation seeks to establish a higher level of accountability and regulatory scrutiny over how institutions manage online programs. Under S4818, institutions are required to submit contracts with online program management companies to the Secretary of Higher Education for approval, which is intended to ensure that contractual agreements adhere to state regulations. The bill will also create public access to information about these agreements and their implications on student enrollment and financial assistance.
Summary
Senate Bill S4818 introduces regulations concerning the contracts between institutions of higher education and online program management companies. Its primary focus is to prohibit institutions from offering incentive compensation to these companies for securing student enrollments or financial aid, with the exception of recruiting foreign students. By mandating transparency in these relationships, the bill aims to safeguard the integrity of higher education and student interests.
Contention
Despite the stated goals of the bill, it has drawn criticism regarding its potential to limit institutional flexibility in the management of online programs. Opponents argue that the restrictions on incentive compensation could discourage collaboration between institutions and program managers that might innovate and enhance educational offerings. Furthermore, there are concerns about the possible burden this could impose on institutions as they adapt to new reporting requirements and compliance costs.
Implementation
If passed, S4818 will take effect immediately, requiring existing contracts to be adjusted to comply with its provisions before the start of the fall semester in 2027, thus giving institutions time to align their practices with the new regulations. This timeframe also aims to facilitate any necessary changes in the administrative processes at institutions to ensure that they meet the newly established compliance standards.
Same As
Concerns incentive compensation and contracts between online program management companies and institutions of higher education and certain proprietary institutions.
Concerns incentive compensation and contracts between online program management companies and institutions of higher education and certain proprietary institutions.
Concerns incentive compensation and contracts between online program management companies and institutions of higher education and certain proprietary institutions.
Requires certain institutions of higher education and degree-granting proprietary institutions to submit certain documentation on online program managers to Secretary of Higher Education.
Requires institutions of higher education and proprietary degree-granting institutions that have agreements with online program managers to disclose online program information.
Requires online program manager providing marketing services for institution of higher education or proprietary institution licensed to offer academic degrees to self-identify as third party to prospective students.
Requires institutions of higher education and certain proprietary institutions to notify Higher Education Student Assistance Authority of approved federal borrower defense loan discharge.
Requires institutions of higher education and certain proprietary institutions to notify Higher Education Student Assistance Authority of approved federal borrower defense loan discharge.
Requires undergraduate students to file degree plan and requires institutions of higher education and certain proprietary institutions to develop pathway systems to graduation.
Concerns incentive compensation and contracts between online program management companies and institutions of higher education and certain proprietary institutions.
Concerns incentive compensation and contracts between online program management companies and institutions of higher education and certain proprietary institutions.
AN ACT to amend Tennessee Code Annotated, Title 49, Chapter 14; Title 49, Chapter 7; Title 49, Chapter 8 and Title 49, Chapter 9, relative to higher education.
AN ACT to amend Tennessee Code Annotated, Title 49, Chapter 14; Title 49, Chapter 7; Title 49, Chapter 8 and Title 49, Chapter 9, relative to higher education.