The Department of Education revisited proposed changes to asynchronous clock, credit-hour, and subscription-based programs in distance education. In previous years, the Department of Education’s final negotiated rulemaking in 2020 asserted that clock hours would be counted for coursework in the classroom or through live, hands-on activities (i.e., clinicals), which excluded passive consumption of learning materials and resources and time spent outside of the classroom for Higher Education Act (HEA) eligibility. According to the Program Integrity and Institutional Quality: Distance Education and Return of Title IV, HEA Funds Rule from January 2025, the previous definition was outdated:
The decades-long definition of a clock hour never included the concept of out-of-class work. It also does not turn on whether a program is offered virtually. This definition predated the creation of the internet, and it remained in place for nearly 15 years after fully online programs were allowed in the Title IV HEA programs. Congress also did not change this interpretation in the last full reauthorization of the Higher Education Act in 2008.
While the Department decided not to finalize the proposed change to prohibit asynchronous clock hour programs, this meant that these programs remain subject to the existing requirements, and the final rule goes into effect on July 1, 2026. Distance education student enrollment reporting starts a year later on July 1, 2027. The American Council on Education’s (ACE) Regulation Summary offers a rundown of what to expect.
What Do These Updates Mean for Military-Connected Students?
Essentially, the modernization of online distance learning definitions may impact which educational programs are eligible for VA GI Bill benefits. Positive implications could include increased accessibility and flexibility with more remote or hybrid online program options. The final rule requires higher education institutions that offer distance education programs to be monitored for high quality and clearer oversight, which includes enrollment verification and reporting criteria.
ACE shared a more cautious outlook, noting that the expanded definitions of what constitutes distance learning could inadvertently include unaccredited online programs and short-term, non-college courses. This would increase the risk of predatory programs towards the military community. ACE disagreed in its August letter to the Department with the mandate regarding virtual locations and the removal of the asynchronous option from the clock-hour definition for students who are enrolled in distance education.
Residency requirements may still apply depending on the higher education institution and veteran status (see Update on the Veterans Choice Act: What Section 702 Means for You for more information, such as in-state tuition). Keep in mind that the VA education benefits policy also still requires an online learning rate of 50 percent of the national average for the monthly housing allowance under the Post-9/11 GI Bill. The VA’s Education Policy and Guidance site provides the provisions of the Choice Act, under which states or public institutions of higher learning may require students to demonstrate proof of eligibility and intent to establish residency.
In summary, the Department of Education’s remainder of the final rule, effective July 2026, is set to ensure the continuity of oversight and compliance on how higher education institutions carry out clock-hour programs. Though it could mean wider accessibility to distance education programs, organizations, such as ACE, advocate for clarity in the regulation. The modernization of how distance education programs are defined was needed partly due to the fact that it did not align with today’s education model.
