Cindy Sarpomaa-Nyarko
Associate Editor
Loyola University Chicago School of Law, JD 2026
In January 2025, the U.S. Department of Education (“ED”) released a final rule including provisions on reporting requirements for online and distance education. Supporters of the rule argue its implementation will enhance transparency and accountability for institutions of higher education. Conversely, critics of the rule raise concerns about the financial burdens associated with implementing the reporting requirements. Nevertheless, the ED claims the goal of the regulation is to collect the data necessary to assess the quality and effectiveness of distance education.
Post-COVID pandemic online education
During the COVID-19 pandemic, which forced many individuals to social distance, there was a significant shift toward online and distance learning for institutions of higher education. Post-pandemic, many higher education institutions have returned to the traditional in-person model, but there remains a large number of institutions that continue to offer online and distance learning options or hybrid learning options for their students. Online and distance education persists in these higher education institutions because they offer many students more flexibility and accessibility compared to more traditional in-person education. However, a key issue that persists regarding online and distance education is the proper assessment of its effectiveness compared to its in-person counterpart. While some argue that online and distance education offers a similar quality of education to traditional in-person models, others express concerns about the lack of measures to determine its impact on student outcomes. Without sufficient data, it is challenging for students, families, and policymakers to make informed decisions about the value of distance education.
Online and distance education reporting
In response to these concerns about the measure and collection of online and distance education outcomes, the ED issued a final rule addressing enrollment reporting in distance education. The rule includes a new requirement that higher education institutions “report student enrollment in distance education or correspondence courses using a procedure that would be determined by the Department.” The reporting rule would specifically affect students who are recipients of Title IV and HEA (“Higher Education Act”) assistance. Currently, institutions report aggregate data on distance education enrollment to the Integrated Postsecondary Education Data System (“IPEDS”), but the ED has limited access to student-level data reported to IPEDS. Historically, it has been a challenge for the ED to differentiate between in-person and online programs in its data collection, which limits their ability to track student progress and outcomes effectively. For example, instead of reporting on an aggregate level of students generally enrolled in an online education program, the new rule would require higher education institutions to report data about the type of instruction (online, in-person, or hybrid) on a student-by-student basis to the National Student Loan Data System (“NSLDS”). With access to enrollment data on a student-by-student basis, the ED can more accurately track how distance education impacts student outcomes, such as graduation rates, loan debt, and post-graduation earnings. Overall, the new rule on reporting will benefit students by providing them more transparency and knowledge to make informed decisions about the effectiveness of online and distance education for themselves. It will also provide policymakers with the information they need to provide the necessary oversight to ensure these online and distance education programs are meeting quality standards for students and complying with accreditation and federal aid requirements.
The ED’s final rule on enrollment reporting for distance education has received both support and criticism. Supporters claim that increased reporting will increase effective government oversight of online learning to benefit students. They argue that as online and distance education becomes more prevalent, there is an increased need for more data gathering so that students don’t enroll in programs that won’t provide career benefits. Additionally, the supporters see the regulation as an essential to enhancing federal data on higher education so that meaningful comparisons can be made between in-person and online learning. Conversely, critics of the rule highlight the significant costs institutions will bear to comply with the rule and their fear that these significant costs will be passed on to students. For instance, although the ED initially estimated first-year implementation costs at $381,560, further review revealed that the actual cost burden would exceed $10 million across all impacted higher education institutions. In response to complaints about the estimated burden of the final rule’s implementation, the ED delayed the implementation of the reporting provision of the rule to July 1, 2027 to give institutions more time to prepare.
As the debate regarding the assessment and quality of online and distance education continues, policymakers, educational institutions, and students must assess how to balance academic innovation with accountability. Balancing the two concepts will ensure that all students receive a high-quality education – regardless of its form.