Last week the Obama Administration proposed a set of rules and definitions to, in their view, strengthen federal student aid programs.

The Notice of Proposed Rulemaking (NPRM) covers several issues.

• Ensures that only eligible students receive federal funds;
• Protects consumers from misleading or overly aggressive recruiting practices;
•  Clarifies state oversight responsibilities; and
• Clarifies the courses that are eligible for federal aid, and the amount of aid that is appropriate.

The NPRM reflects the work of the U.S. Department of Education and the higher education community around 14 specific issues over the last year.

The NPRM is subject to public comment. The Department plans to closely review all the comments it receives with the goal of publishing a final rule by November 1. This would allow any changes to take effect July 2011.