Preparing for Financial Value Transparence and Gainful Employment? 5 Key Takeaways

The higher education landscape is constantly evolving and is undergoing a significant transformation with the introduction of the Financial Value Transparency and Gainful Employment Act (FVT/GE). This act builds upon the foundations of previous Gainful Employment regulations. It mandates institutions to provide granular data on program-level and student-level outcomes, especially for students receiving federal aid. The primary purpose is to check the financial feasibility of educational programs. You can check the financial feasibility by comparing the median debt of graduates with their median income levels.

Equifax hosted a recent webinar to dive into the impact of the new requirements. Speakers included:

• Colby Spencer Cesaro, Vice President of the Michigan Independent Colleges and University Association

• Dr. Jason Simon, Associate Vice President of Data, Analytics, and Institutional Research, University of North Texas

• Brandi Recker, Senior Analytics Consultant, Equifax

Our speakers led an information filled session to discuss the ins and outs of the looming FVT/GE reporting that is due October 1, 2024.

5 Key Takeaways

While the specifics of the regulations are still unfolding, educational institutions should still consider these five takeaways when developing an action plan for compliance:

1. FVT/GE reporting has significant implications for higher education institutions. It requires granular data on program-level and student-level outcomes, particularly for students receiving federal aid.

2. Institutions must prepare for the potential impact of FVT/GE reporting. Programs that fall short of specified debt-to-earnings ratios risk losing access to federal aid. This could affect institutions that are not currently affected by enrollment declines.

3. There are two reporting avenues: standard and transitional. Standard reporting provides a comprehensive overview but requires a large data compilation effort. Transitional reporting is less burdensome but limits the ability to discern long-term trends.

4. Institution-wide collaboration is essential for FVT/GE compliance. Financial aid offices, registrars, IT departments, and executive leadership all play a role in data collection and interpretation.

5. Colleges and universities can leverage verified data to help meet reporting requirements. For example, you can use Equifax Graduate Outcomes not only to support compliance, but also to craft a compelling narrative about student outcomes and expected value.

Verified Data Can Help Meet Reporting Requirements

Equifax offers a unique perspective for institutions grappling with FVT/GE. Our reports provide an extensive repository of verified payroll, credit, and affluence data. By simulating standard and transitional reporting metrics, we help institutions expect potential shortcomings and address them preemptively. This data-driven strategy empowers institutions to shape the narrative surrounding their program results. Institutions can now showcase their commitment to student success and financial well-being.

The Implications of the FVT/GE Extend Beyond Compliance

Despite the challenges, the FVT/GE has the potential to reshape the higher education landscape by fostering greater transparency and accountability for prospective and current students. It also presents a unique opportunity for institutions to prove commitment to student success. Institutions that embrace a data-driven approach can meet regulatory reporting requirements while enhancing their reputation and attracting prospective students. By leaning into data to create a compelling story, institutions can build trust with students and families. This contributes to a more fair and transparent education system.

The FVT/GE is a game-changer for higher education. It compels institutions to take a hard look at their data and use it to improve student outcomes. While the road to compliance may be challenging, the benefits of transparency and accountability are clear. Institutions that embrace the FVT/GE will be well-positioned to thrive in the years to come.

Continue to learn how we can help your institution meet FVT/GE reporting requirements.

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