NEW GUIDANCE RELEASED FOR COLLEGES AND THIRD PARTY SERVICERS
Also this week, the Department of Education released a "Dear Colleague" letter providing guidance clarifying when statements made by institutions or their external service providers, like online program management companies (OPMs), could be considered unlawful misrepresentation. The guidance outlines scenarios where misrepresentation may occur, such as incorrectly labeling staff or programs, or implying equivalence between online and on-campus programs when there are substantial differences. While this new guidance targets specific OPM practices, it is more focused and less far-reaching than the Department’s earlier 2023 guidance, which was criticized and eventually withdrawn.
