Online schools could get student-aid break from Katrina
Filed in archive Articles of note... by mstandaert on September 22, 2005
A bill to provide education relief to victims of Hurricane Katrina would temporarily remove a controversial distance-education regulation, allowing some students attending virtual colleges to receive Federal
financial aid for the first time. Embedded in the $3.7-billion education-relief bill (S 1715), which was introduced last week in the Senate, is a provision that would alter the definition of an institution of higher education to include online colleges and universities. That change would overturn a longstanding rule that limits the size of colleges' distance-education programs if they want to be considered higher-education institutions for purposes of federal student-aid programs.
Currently, colleges that enroll more than 50 percent of their students at a distance, or offer more than 50 percent of their courses through distance education, cannot participate in the federal aid programs. The rule was established in 1992, after a string of fraudulent correspondence programs ripped off students during the 1980s.
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