Posted Date: June 10, 2015

Author:  Colleen McGinnis, Chief of Staff, Federal Student Aid

Subject: Enforcement of the Prohibition on Incentive Compensation Payments

On June 2, 2015, Under Secretary Ted Mitchell issued a memorandum that provided direction to the Department in responding to violations of the incentive compensation prohibition in section 487(a)(20) of the Higher Education Act (20 U.S.C. § 1094(a)(20)).  Under the Under Secretary’s memo, Federal Student Aid will recover funds from institutions that are found to have violated the incentive compensation prohibition.

We have attached a copy of Under Secretary Mitchell’s memorandum on this topic.


Under Secretary Ted Mitchell Memorandum: Enforcement of the Statutory Prohibition on Payment of Incentive Compensation by Postsecondary Institutions in PDF Format, 71KB, 2 Pages


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