New Law Limits Aid For Foreign Online Programs

Under a law that goes into effect July 1, U.S. students enrolled in online courses offered by non-U.S. institutions may no longer use federal financial aid to pay for those courses. The Higher Education Reconciliation Act of 2005 does allow students to use federal financial aid for programs that complement in-person instruction with online tools. A spokesperson for Rep. Howard P. “Buck” McKeon (R-Calif.), chair of the House committee that shepherded the legislation to passage, said the law, which is part of a deficit-reduction package, is intended to guarantee that students use federal aid for legitimate foreign-school experiences rather than simply taking a course from an institution in London, for example, but doing all of the work from the United States.

Chronicle of Higher Education, 30 June 2006 (sub. req’d)