Colleges must follow tighter federal rules for online classes and student aid refunds

The US Education Department just tightened the rules for colleges that offer online classes and for how they handle federal student aid when students drop out. This means schools will have to be more precise about how they manage these programs to keep their federal funding.

Schools have long navigated complex rules around online education and student aid refunds. These new rules aim to close loopholes and ensure schools are held to a higher standard for how they manage federal money. It means less room for schools to exploit ambiguities in the system.