Liberty sues Virginia After Gov. Northam Passes LEgislation Preventing Online Students From REceiving Financial Aid

Liberty University will battle Governor Ralph Northam and Peter Blake, the director of the State Council of Higher Education for Virginia, or SCHEV, in court over new changes to the Virginia Tuition Assistance Grant that omit some online students from receiving aid.

The Virginia Tuition Assistance Grant, or VTAG, is a grant offered to Virginia residents who choose to attend a participating private college or university in Virginia. 

The new policy distinguishes between two categories SCHEV has labeled “place-based learning” and “online learning.” From Fall 2020 onward, VTAG is only granting financial aid to “place-based,” or residential students. The online students that were already enrolled are still covered by VTAG until they graduate but incoming online students have been omitted. 

Liberty’s suit, filed January 8, challenged this policy and demands that SCHEV treat residential and online students the same. In an official release, Liberty stated, “The Legislature’s arbitrary exclusion and discrimination violate the Equal Protection guarantees of the United States Constitution.” 

Liberty’s complaint lays out its argument against the new policy implemented by SCHEV, stating that the new rules are self-contradictory and absurd. For example, the definition of a “residential student” or an “online student” can differ from school to school and VTAG itself has not provided a clear definition that is consistent with the new law. 

Students could also be classified differently at two different universities and only be eligible to receive financial aid at one of them. Indeed, all students whether classified as place-based or online use digital online platforms to conduct their schooling, with many residential students taking course work that is 100% online.  Liberty’s complaint describes this divide between the two classes of students as “arbitrary and unconstitutional,” stemming from “the lack of any legislative standard.”

David Corry, the general counsel for Liberty University, said the timeline for concluding this suit was uncertain. “It’s impossible to say how long this type of case will take at this stage,” he said. Corry estimated that it could be 18 to 21 months before a resolution could be announced by the Court, putting the final decision sometime near the fall of 2022.

In the meantime, Liberty University has stepped in to provide for its own students left out of VTAG. Liberty offers new online students “LUTAG,” which grants the same funding as VTAG. Last fall, it offered $1.6 million to 552 incoming students who would have otherwise been denied. 

If Liberty wins the case, it would not only help Liberty but also other Virginia colleges with online programs and their students who are Virginia residents affected by the change. Liberty will ask the court to declare that all schools’ online students should be equally eligible for financial aid.

Christine Walker is a News Reporter.