Center for American Progress

Letter to Under Secretary James Kvaal Regarding the Incentive Compensation Ban
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Letter to Under Secretary James Kvaal Regarding the Incentive Compensation Ban

Along with other student, consumer, and labor advocates, the Center for American Progress sent a letter calling on the Department of Education to close a loophole in the federal ban on incentive compensation.

On November 13, 2024, the Center for American Progress joined partners to submit a letter to U.S. Under Secretary of Education James Kvaal urging the department to rescind the so-called 2011 bundled services guidance, which is inconsistent with the statutory ban on incentive compensation in higher education. The guidance permits tuition-sharing arrangements between institutions of higher education and third parties engaged in student recruitment, a practice otherwise prohibited under the Higher Education Act. These payment structures incentivize the use of high-pressure sales tactics in place of enrollment and admissions advising. CAP urges the U.S. Department of Education to rescind the 2011 bundled services guidance as soon as possible.

Click here to read CAP’s comment letter to the U.S. under secretary of education on closing the incentive compensation ban loophole.

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Higher Education Policy

The Higher Education team works toward building an affordable and high-quality higher education system that supports economic mobility and racial equity.

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