CONTENTS
CONGRESSIONAL ISSUES
- AAU Urges Congress to Complete FY17 Appropriations Process This Year
EXECUTIVE BRANCH
- Higher Education Associations Comment on Proposed Borrower Defenses Regulations
- Administration Proposes Regulations on Form 1098-T Tuition Reporting
OTHER
- National Academies Plans Seminar on Improving Social and Behavioral Science News Coverage
CONGRESSIONAL ISSUES
AAU Urges Congress to Complete FY17 Appropriations Process This Year
AAU sent a letter to congressional leaders on August 3 urging them to complete the FY17 appropriations process this year. The letter, from AAU president Mary Sue Coleman, called on Congress to adopt a continuing resolution (CR) that expires in December to keep federal agencies funded when the new fiscal year begins on October 1, rather than one that continues into March 2017, as some have proposed. The letter notes that delaying the process until next year creates a strong risk of a year-long CR.
A short-term measure would require Congress to return following the November election.
Congress, the letter says, “has an obligation to make decisions each year on funding for each of the agencies…and…these important decisions for the Department of Defense, the Department of Education, and a host of other agencies should not be put on autopilot.”
The letter adds that “key choices made by the appropriators thus far can strengthen our country by enhancing college access, bolstering scientific research, and injecting new resources into the search for treatments and cures for diseases that afflict millions.” The letter points specifically to funding increases for the National Institutes of Health and the Agriculture and Food Research Initiative proposed by both the House and Senate Appropriations Committees and investments proposed by one of the committees, including the restoration of year-round Pell Grants, proposed by the Senate panel.
EXECUTIVE BRANCH
HIGHER EDUCATION ASSOCIATIONS COMMENT ON PROPOSED BORROWER DEFENSES REGULATIONS
AAU has joined several other higher education associations in submitting comments on the Notice of Proposed Rulemaking (NPRM) regarding borrower defenses to repayment that was published in the Federal Register on June 16, 2016. The association letter, dated August 1, expresses strong support for efforts to provide clear, consistent, and processes through which borrowers who have been defrauded or harmed by the higher education institutions they attended may seek debt relief. Since the federal government will seek to be reimbursed for funds it uses to provide debt relief to borrowers, it is critical that the final rule establish procedures to ensure that legitimate institutions can present their perspectives in the determination of any claims, the letter adds. The letter provides several specific examples of how the regulatory language can be clarified to provide borrowers relief from clear examples of serious and egregious wrongdoing, hold fraudulent institutions accountable for their misconduct, and ensure a fair process for legitimate institutions.
ADMINISTRATION PROPOSES REGULATIONS ON FORM 1098-T TUITION REPORTING
On August 2, the Department of the Treasury and the Internal Revenue Service (IRS) issued new proposed regulations regarding the reporting of qualified tuition and related expenses on Form 1098-T. These regulations would implement section 212 of the Protecting Americans from Tax Hikes Act of 2015 (PATH Act), which requires colleges and universities, starting in the 2016 tax year, to file Form 1098-T tuition statements that report the aggregate amount the institutions received for qualified tuition and related expenses (Box 1) instead of the aggregate amount of payments the institutions billed (Box 2). The agencies are asking for comments on the proposed regulations.
Most colleges and universities currently report amounts billed (Box 2) and thus will need to put new software solutions in place in order to implement Box 1 reporting. AAU and other higher education associations expressed concerns about this switch in their March 10 letter to the IRS.
Treasury and the IRS take the view that students benefit from the Form 1098-T by helping them to determine their eligibility for education tax benefits. Nevertheless, the agencies also recognize that there may be instances in which reporting such information is not useful to students and also imposes undue burdens on institutions of higher education. They are therefore asking for comments on possible exceptions to the reporting requirements.
The proposed regulations reiterate the IRS's May announcement that it will not impose penalties on institutions of higher education that continue in the 2016 calendar year to report amounts billed rather than received.
Written or electronic comments must be received by October 31, 2016. Those who wish to present oral comments at the public hearing on the proposed regulations, scheduled for November 30, must provide an outline of the topics to be discussed, which also must be received by October 31.
OTHER
NATIONAL ACADEMIES PLANS SEMINAR ON IMPROVING SOCIAL AND BEHAVIORAL SCIENCE NEWS COVERAGE
The National Academies (NAS) Division of Behavioral and Social Sciences and Education will hold a seminar on Tuesday, August 9, on strengthening news coverage of social and behavioral science. The seminar’s purpose, according to the Academies, is “to improve the identification of newsworthy social and behavioral science and how it is reported through all media.” Speakers will include experts on the media, journalists, and government officials. The all-day event will take place at the NAS Building, 2101 Constitution Avenue, NW, Room 120, in Washington. The event will also be webcast. Information on the agenda, registration, and the webcast is available on the NAS website.