COVID-19 Update: Tuition Litigation, Teacher Labor Market, Benefits Guidance, Endowment Spending

May 1, 2020, 12:53 PM

(from Venable) Universities are facing backlash from students who have transitioned to online courses as a result of the coronavirus pandemic and are facing federal class action lawsuits. Suing under theories of breach of contract and unjust enrichment, these lawsuits allege that the lack of access to in-person instruction, campus facilities and equipment, student activities, networking opportunities, and other services for which students have paid warrant a partial refund of tuition payments and fees. Institutions should consider the following to bolster their case: 

  • Well-drafted promotional materials
  • Coordinated and consistent messaging to students/families
  • Sound record-keeping
  • Evaluation of program offering differences 

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(from the 74 Million) What may happen to the teaching labor market in the coming year? Two experts predict average salaries will decline, teacher resignation rates will fall, but those planning to retire will continue to do so, and that new teachers will have a harder time finding jobs. They advise schools to incentivize early notice, rethink teacher retention strategies, and work closely with teacher prep programs to strengthen the pipeline. 

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(from Bolton & Company) Employers now have specific guidance from the Department of Labor, Internal Revenue Service and Department of Health and Human Services regarding employee benefit plans and participants due to the COVID-19 pandemic. The Employee Benefits Security Administration Disaster Relief Notice 2020-01 announced extensions on certain time frames with regards to federal COBRA, HIPAA special enrollment events and more. Most notable is that the guidance requires employers to suspend the deadline for qualified beneficiaries to elect COBRA or pay COBRA premiums from March 1, 2020 until 60 days after the national emergency ends (or such other date as specified by the Agencies).

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(from Inside Higher Ed) Institutions should spend their endowments now to make a difference to their existing workforce and the larger challenges posed by the pandemic, argues an anonymous staff member at a private liberal arts college. "My college, again like so many academic institutions, prides itself on its community engagement... But how deep is that engagement? If we are as engaged as we claim to be, shouldn’t we be asking more than how to save the college? Shouldn’t we be asking how to save our community? ... If ever there was a time to share the resources that we as institutions of higher learning have managed to accumulate, it is now."

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(from McSweeney's Internet Tendency) McSweeney's Internet Tendency has provided a perspective on the many emails parents receive and the challenges of managing remote schooling. "In case you missed our last email with our community message, here is another one with a summary of what was said."

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