Incentive Compensation
On October 29, 2010, the U.S. Department of Education published final regulations for improving the integrity of federal student aid programs authorized by the Higher Education Act of 1965. Regulations pertaining to incentive compensation require that institutions “will not provide any commission, bonus, or other incentive payment based in any part, directly or indirectly, upon success in securing enrollments or the award of financial aid, to any person or entity who is engaged in any student recruitment or admission activity, or in making decisions regarding the award or title IV, HEA program funds."
For more guidance on incentive compensation, see the following resources:
- Incentive Compensation Q&A, U.S. Department of Education
- Guidance from the U.S. Department of Education: This letter provides guidance on three areas of the final regulations addressing program integrity issues: state authorization, incentive compensation, and misrepresentation.
- U.S. District Court Ruling on Career College Lawsuit on Incentive Compensation and Misrepresentation
- International Recruitment/Agents
Expand / Collapse All