Recent commentary in Inside Higher Ed underscores a reality higher education leaders can no longer ignore: the U.S. Department of Education (ED) now has unprecedented enforcement tools at its disposal, and the current administration has signaled its willingness to use them.
For colleges and universities, the stakes are high. Failure to proactively address compliance gaps is no longer just a regulatory issue — it is a legal and financial risk that could jeopardize student access to federal aid and threaten the institution’s very survival.
The Expanding Legal Landscape
Recent regulatory changes have broadened ED’s ability to penalize institutions. Key risks include:
- Heightened Cash Monitoring (HCM): Institutions placed under HCM face restricted cash flow and increased oversight, with potentially devastating operational consequences.
- Letters of Credit: ED may now require institutions to secure private guarantees equal to 10% or more of their federal aid disbursements. Many colleges simply cannot absorb this financial burden.
- Vague Enforcement Standards: Provisions such as “significant negative action” by another agency remain undefined, creating open-ended liability. Even the loss of a single grant could trigger federal review.
- Compounding Penalties: Additional findings can multiply the financial requirements, leaving institutions with few options other than closure.
The legal exposure is clear: missteps in compliance or administration can now be interpreted as violations with consequences extending well beyond financial aid offices.
The Cost of Non-Compliance
Defending against ED enforcement actions requires significant legal resources. Even if successful, institutions suffer reputational harm, increased audit scrutiny, and potential restrictions on their Title IV eligibility. Litigation and appeals are costly, time-consuming, and uncertain.
The most effective strategy is prevention — demonstrating a strong culture of compliance before issues escalate to enforcement.
How HEAG Can Help
At HEAG, we specialize in helping colleges and universities mitigate these risks and strengthen compliance operations. Our services directly address the vulnerabilities identified in the Inside Higher Ed article:
- Compliance Assessments – Independent evaluations of institutional readiness against current ED standards.
- Business Process Reviews (BPRs) – Mapping and strengthening processes to ensure defensibility under federal scrutiny.
- Staffing Assessments – Identifying gaps and ensuring adequate resources for compliance management.
- Training & Mentoring – Equipping teams with the knowledge and confidence to meet evolving federal expectations.
These services are designed to protect institutions not only from regulatory findings but also from the legal and reputational fallout that follows.
Proven Success, Peer-to-Peer Validation
We know that institutions want more than assurances — they want evidence. That’s why HEAG not only delivers robust compliance solutions but also offers opportunities to hear directly from client institutions we’ve partnered with. Our track record speaks for itself; however, we want you to hear it directly from our institutional partners. We would be happy to schedule a time for you to meet with both HEAG experts and client representatives, so you can see firsthand how our approach has strengthened compliance, safeguarded aid eligibility, and delivered peace of mind.
Moving Forward with Confidence
The message from Washington is unambiguous: institutions that fall short on compliance will face consequences. The good news is that colleges can prepare now — with the right support.
HEAG stands ready to partner with you to strengthen compliance, reduce legal risks, and safeguard the future of your students and your institution.
Contact us today at info@heag.us to learn how HEAG’s compliance, process, and staffing solutions — backed by proven success stories — can help your institution stay ahead of federal enforcement.
Source: https://www.insidehighered.com/opinion/views/2025/09/22/ed-department-hasnt-even-begun-fight-opinion
