The Department has released a detailed outline of the latest changes to the Ability to Benefit (ATB) regulations and Eligible Career Pathway Program for students without a high school diploma that want to apply for Title IV aid. The letter includes a number of topics such as instructions on how to enroll in these programs, calculate success rates, and important reminders related to seeking State Process Approval.
Read the full announcement below for more details.
PUBLICATION DATE: June 12, 2024
DCL ID: GEN-24-08
SUBJECT: Ability to Benefit State Process and Eligible Career Pathway Programs
SUMMARY: This letter explains changes made to the Ability to Benefit (ATB) State Process regulation at 34 CFR § 668.156 and the addition of regulatory requirements for Eligible Career Pathway Programs (ECPPs) at 34 CFR § 157.
Dear Colleague:
In December 2014, the Higher Education Act of 1965, as amended (HEA), was changed to allow a student who does not have a high school diploma or the recognized equivalent of a high school diploma, or who did not complete a secondary school education in a homeschool setting, to be eligible for Title IV aid through one of the ATB alternatives if the student is enrolled in an “eligible career pathway program,” or ECPP.
Students who are enrolled in an ECPP may be eligible to receive Title IV aid if the student meets one of the following ATB alternatives:
- Passes an independently administered U.S. Department of Education (Department) approved ATB test;
- Completes at least six credit hours or 225 clock hours that are applicable toward a degree or certificate offered by the postsecondary institution; or
- Completes a State process approved by the Secretary of Education.
On October 30, 2023, final regulations were published implementing this statutory change. These regulations amend the provisions of the state process alternative and provide regulatory requirements for ECPPs that are used for establishing student eligibility for Title IV funds and will be effective July 1, 2024.
For purposes of this DCL the term ECPP only refers to programs that are approved by the Department to be used to establish student eligibility for Title IV funds through the ATB alternatives listed above. The term Career Pathway Program (CPP) refers to programs that have been developed for purposes of establishing student eligibility under the ATB alternatives but have not yet been approved by the Department.
ATB State Process (34 CFR § 668.156)
For a State to have its first State process approved by the Department, the State must submit the information listed in the attachment to atbstateprocess@ed.gov. You can also submit questions that you have about the State process to that mailbox. There is no deadline for submission of the information, and States may submit the information on a rolling basis after July 1, 2024.
If an application is approved during a payment period, an enrolled student can receive a Federal Pell Grant for the entire payment period in which the State was approved. A student can receive a Federal Direct Loan for the entire period of enrollment, which could be the academic year.
Per 34 CFR § 668.156(b), the first State process (first/initial application) approval will last two years. Per 34 CFR § 668.156(e), a State will then be required to submit a subsequent application if it seeks to continue participation after the two-year period. We encourage States to submit the subsequent application well before the expiration of their first approval to ensure continued Title IV eligibility of its State process. If a State process expires, any student admitted prior to the expiration of the State process will continue Title IV eligibility; however, no new students can enroll in a participating institution with an expired State process until the State resubmits an application, and it is approved by the Department.
Any State which had a State process approved by the Department prior to July 1, 2024, should submit for re-approval prior to the expiration of its current approval. These states are only required to submit information listed under “All State Process Applications” and “Subsequent State Process Applications” in the attachment.
A. REQUIREMENTS FOR STATE PROCESS APPLICATIONS
The requirements for All State, First State, and Subsequent State Process Applications can be found here.
B. SUCCESS RATE CALCULATION EXAMPLE (34 CFR 668.156(f))
The State of X submitted its first application and was approved on July 1, 2025. The State decides to submit a subsequent application for continued participation on January 1, 2027, because the expiration of its initial State process is July 1, 2027. Each individual participating institution must use the data from the latest complete award year for which information is available. For the State of X that would be the 2025-2026 award year.
The Success Rate Calculations for students with and without a high school diploma can be found here.
Important Things to Remember When Applying for State Process Approval:
- The initial State process approval will be for a two-year period. The Department’s approval of a subsequent State process may be for a period not to exceed five years, though the approval may be for fewer than five years. States must continue to reapply for approval to remain able to use the State process alternative (34 CFR 668.156(i)).
- If the Department does not respond to a State process request for approval within six months of receipt, then the State process is deemed approved, and students can enroll in the ECPPs at the participating institutions and receive Title IV aid for two years with an initial application, or five years with a subsequent application (34 CFR 668.156(d)(2)(ii)).
- The Department may publish a notice in the Federal Register requesting additional data from States with an approved State Process. Deadlines and procedures will be clearly established in the notice. The Department will provide States with ample time to collect and report data (34 CFR 668.156(h).
- The Department has discretion to terminate approval of a State process if it determines that the information that the State submitted as a basis for approval is inaccurate or if a State is violating any of the terms of its approval. A State can appeal the termination of approval by emailing atbstateprocess@ed.gov. If the State decides not to appeal, or the termination is upheld after appeal, then the State cannot reapply to the Secretary for a period of five years (34 CFR 668.156(j).
B. Eligible Career Pathway Program (34 CFR § 668.157)
Institutions relying on the ATB ECPP alternatives to establish student eligibility for Title IV funds must be able to document that each ATB ECPP offered by the institution meets the eligibility requirements detailed in the cited regulation. That documentation must be provided to the Department when obtaining initial approval for the ATB CPP or when requested by the Department.
Institutions that offered one or more ATB CPPs prior to July 1, 2024, must apply to the Department to have one of its CPPs certified as eligible for Title IV purposes by the earlier of:
- The submission of any update the institution makes to the Electronic Eligibility Application (E-App) on or after January 1, 2025; or
- The submission of the institution’s recertification application on or after January 1, 2025.
At that time, institutions will need to upload documentation using the E-App to demonstrate that one of its CPPs meets the eligibility requirements. The institution will also be expected to provide a list of all other ATB CPPs and certify that they meet the regulatory requirements (34 CFR 668.157(b)(2)). The Department reserves the right to request documentation for other programs if circumstances warrant (34 CFR 668.157(e)). If the Department determines that the CPPs do not meet the regulatory requirements, students enrolling in the programs may not use the ATB alternatives to establish Title IV eligibility. Students already enrolled under the ATB CPP alternatives will remain eligible for Title IV funding.
For institutions that have not offered an ATB CPP prior to July 1, 2024, the institution must submit an E-App with supporting documentation and receive approval from the Department prior to awarding Title IV aid to prospective students. After the first CPP has been approved as eligible, the institution can offer more ATB CPPs without approval. The institution must notify the Department of additional programs and certify that all other ATB CPPs meet the regulatory eligibility requirements (34 CFR 668.157(c)(2). The Department may choose to review any subsequent ATB CPPs offered by your institution for any reason.
If the Department does not approve an ATB CPP for eligibility purposes, the institution may appeal that decision by contacting its appropriate regional office to initiate the appeal (34 CFR 668.157(d).
Documentation requirements and examples of acceptable documentation are outlined in the table below.
The acceptable documentation examples are not exhaustive. An institution can submit alternate documentation where it believes it would fulfill the documentation requirement. Once the institution submits that documentation to the Department, an eligibility analyst will provide feedback on whether the documentation meets the standards of the regulation.
Additional Resources and Contact Information:
Please send questions regarding topics discussed in this Dear Colleague Letter through the Contact Customer Support link in Federal Student Aid’s Help Center. When submitting a question, please enter your name, email address, topic, and question. In addition, please indicate if your question relates to an open audit or program review. When selecting a topic, please select “Policy Guidance.”
Sincerely,
Dr. Nasser Paydar
Assistant Secretary
Office of Postsecondary Education
SOURCE: (GEN-24-08) Ability to Benefit State Process and Eligible Career Pathway Programs