FSA has issued an electronic announcement reminding institutions of the signature requirements for Program Participation Agreements.
Program Participation Agreement Signature Requirements
A Program Participation Agreement (PPA) sets conditions for the initial and continued participation of an eligible institution in the HEA, Title IV federal student aid programs. These conditions include compliance with the provisions of 34 CFR 668.14, other regulations for the Title IV, HEA programs, and any additional conditions specified in the PPA that the Secretary requires the institution to meet.
On October 31, 2023, the Department published a Federal Register notice [88 FR 74568] that amended regulations related to financial responsibility, administrative capability, certification procedures, and Ability to Benefit (ATB). One of the amendments under § 668.14 established a requirement for an authorized representative of an entity with direct or indirect ownership of the institution to sign the PPA.
An institution’s PPA must be signed by an authorized representative of the institution. In addition, under § 668.14(a)(3)(ii), for a proprietary or private nonprofit institution, the PPA must be signed by an authorized representative of an entity with direct or indirect ownership that has the authority to exercise control over the institution. Institutions should continue to review the examples provided in the regulation text to determine whether any ownership or governance arrangements trigger this signature requirement.
If you have questions about the information in this announcement, please email CaseTeams@ed.gov.
SOURCE: (GENERAL-26-02) Reminder of Program Participation Agreement Signature Requirements