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Distance Education: Improved Data on Program Costs and Guidelines on Quality Assessments Needed to Inform Federal Policy

GAO-04-279 Published: Feb 26, 2004. Publicly Released: Feb 26, 2004.
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Highlights

Distance education--that is, offering courses by Internet, video, or other forms outside the classroom--has changed considerably in recent years and is a growing force in postsecondary education. More than a decade ago, concerns about fraud and abuse by some correspondence schools led to federal restrictions on, among other things, the percentage of courses a school could provide by distance education and still qualify for federal student aid. Given the recent changes in distance education, GAO was asked to review the extent to which the restrictions affect schools' ability to offer federal student aid and the Department of Education's assessment of the continued appropriateness of the restrictions. Additionally, GAO was asked to look at the extent to which accrediting agencies evaluate distance education programs, including their approach for assessing student outcomes.

Recommendations

Recommendations for Executive Action

Agency Affected Recommendation Status
Department of Education To better inform federal policymakers, the Secretary of Education should include data in future Demonstration Program reports on the potential cost to the federal student aid programs of waiving the 50-percent rules.
Closed – Implemented
In April 2005, Education submitted to Congress an estimate of the cost of eliminating the 50 percent rules for distance education in its third report to Congress on the Distance Education Demonstration Program. Specifically, Education estimates that the cost of eliminating the 50 percent rules for distance education would be $697 million over ten years, beginning July 1, 2006. This estimate includes $94 million in mandatory funding for the costs of subsidies for approximately $1 billion in loans, and $603 million in discretionary funding for the cost of Pell Grants. According to Education, this estimate reflects the possible expansion of Title IV eligibility to institutions that are accredited by the Distance Education and Training Council.
Department of Education To enhance oversight of distance education quality, the Secretary of Education should develop, with the help of accrediting agencies and schools, guidelines or a mutual understanding for more consistent and thorough assessment of distance education programs, including developing evaluative components for holding schools accountable for such outcomes. The Secretary of Education should also, if necessary, request authority from the Congress to require that accrediting agencies use these guidelines in their accreditation efforts.
Closed – Implemented
In March 2006, the Office of Postsecondary Education developed guidance for staff in the Accreditation and State Liaison Unit to use in evaluating accrediting agency reviews of distance education. The information gathered from discussions with representatives of all regional accrediting agencies and 5 of the 10 national accrediting agencies on how they are evaluating distance education was used to develop the guidance. The guidance is organized into best practices and red flags and was developed in a manner that is sensitive to the Department's limited authority to regulate accrediting agencies. The guidance has been shared with the accreditation community and the Department does not find it necessary to request that Congress require accrediting agencies to use the guidance in their accreditation efforts.

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Topics

Aid for educationFederal aid programsHigher educationProgram evaluationStudent financial aidWaiversDistance educationSchoolsStudentsSchool accreditation