On March 21, President Trump signed a new executive order titled, “Improving Free Inquiry, Transparency, and Accountability at Colleges and Universities.” This executive order is not designed to supersede existing laws, but rather to offer direction to federal agencies related to a number of wide-ranging issues.
First, the executive order directs the heads of a number of federal agencies, including the Department of Education and Department of Labor, to work with the Office of Management and Budget to take appropriate steps to ensure institutions that receive federal research or education grants “promote free inquiry, including through compliance with all applicable Federal laws, regulations, and policies.” There are no specific new policies or suggested actions in the executive order, so it essentially reinforces current law that postsecondary institutions must already follow. For the purposes of this part of the executive order, the reference to “federal research or education grants” includes all federal funding made available directly to an institution, but specifically excludes funding for federal financial aid. Based on the description provided, it does not appear that Perkins funding to postsecondary institutions would be covered under this provision, as it is not provided directly to the institution. However, it is unclear how agencies will interpret the new order or if any new disclosure requirements for institutions will result.
The next parts of the executive order relate more directly to the costs of postsecondary education. The Secretary of Education is specifically directed to:
- Make available a secure website for federal student loan borrowers that contains comprehensive information on amounts owed and repayment options.
- Expand the College Scorecard and update annually with program-level performance information on median earnings and loan debt information for students that receive financial aid.
- Expand the College Scorecard and update annually with institution-level student loan default and repayment rates, including Graduate PLUS and Parent PLUS default rates and repayment rates.
- Consult with other federal agency leaders to submit a report identifying and analyzing policy options for requiring institutions of higher education and other entities to share student loan debt risk.
- In partnership with the Secretary of the Treasury, submit policy recommendations for reforming the collections process for student loans in default.
- Publish a compilation of research results related to state and institutional efforts to promote students' timely and affordable completion of a postsecondary program of study, including research on dual enrollment, easing the transfer process and increasing success for at-risk students.
While the “free speech” portions of the executive order have gotten the most public attention, the piece that may end up being the most relevant to CTE programs and institutions, as tracking program-level earnings data has long been a challenge for many institutions but could provide valuable insights if ever expanded to cover all students.
Secretary of Education Betsy DeVos elaborated on some of the Department’s plans to implement the executive order. A portion of her statement is specifically addresses some of the transparency provisions:
"Per the Executive Order, the Department will continue its efforts to update the College Scorecard so that it includes clear information on the cost of college, expected earnings after graduation, and student loan repayment rates. We will also continue our Federal Student Aid modernization efforts that began with the launch of our first ever mobile app. Right now, students can use the app to complete the FAFSA. And, building on the President's directive, the app's capabilities will expand to give students access to information about loan balances, payments, and repayment options right at their fingertips. We believe that these important reforms, along with the Department's ambitious negotiated rulemaking agenda, will make college more affordable, break down barriers to innovation in higher education, and encourage new approaches and new partnerships for the benefit of students."