Uncover the Mysteries of the

Law and Regulations

Devin Croft
Margaret Day
What’s Important?
• How Does a Bill Become
a Law?
• Laws VS. Regulations
• What's the Federal Register?
• What's the Blue Book?
• What is meant by “Guidance"?
• Finding Answers Using the Federal
Student Aid Handbook and Dear
Colleague Letters

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Title IV Federal Student
Aid Programs
• Pell Grants
• ACG & National SMART Grant
• Campus Based Programs
 FSEOG, FWS, Federal Perkins
Loans
• FFELP/FDLP

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Who’s Responsible?
• Congress  Executive
 Creation and Branch
modification of  Cash
programs management
 Need analysis  Audit criteria
formula  Enforcement (L,
 Maximum grant S & T)
and loan  FAFSA design
amounts  Reporting
 Amount of requirements
funding

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Legislation VS. Regulation
• Legislation
 Congress Adopts with presidential
signature or after overriding a veto
 Amends the U.S. Code -- the
statute
(e.g., Higher Education Act)
 Public Laws (108-XX)

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How the Law is Numbered
• P.L. 105-244 (10/7/98) reauthorized the
HEA
• Title IV, Part G - General Provisions
•Subpart (Arabic numerals when used)
•Section 484 - Student Eligibility
•Subsection (c) - Satisfactory Progress
– Paragraph (1)
– Subparagraph (A)
– Division - lower case Roman - (i), (ii), (iii)
– Clause - upper case Roman - (I), (II), (III)
• Example: Sec. 484(c)(1)(A)

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Legislative Process
• Authorizing Legislation:
 Introduced by a Representative or
Senator to amend or create a
federal statute
• Appropriating Legislation:
 Sets annual funding levels for
federal programs

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Legislative Process Applied to
HEA
• Authorizing Legislation
 Established HEA of 1965 as
amended
 Reauthorization changes/renews
authorizing legislation
approximately every 5 years
• Appropriating Legislation
 Annually funds programs
 Budget bills

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What is Reauthorization?
Process of “reauthorizing” or
continuing the existing law
• Reauthorization of the Higher Education
Act of 1965, as amended
 Originally enacted as part of President
Johnson’s
“Great Society” programs
 Authorizations “sunset” and must be
renewed
 Authorizes all federal Higher
Education Programs

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Why Reauthorization?
• Reauthorization provides the opportunity
for Congressional review
 Public hearings
 More time to consider ideas
 Ability to review fundamental issues
 Access
 Choice
 Eligibility
 Subsidies
 Accountability

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Hand-off to the Executive
Branch
• Presidential signature required on all
changes to the law
–Date of enactment is the date that
the President signs a bill into law

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Hand-off to the Executive
Branch
• Executive Branch must
execute and enforce Laws
 Statutory language may be vague
 Congress may direct that regulations be
written or may prohibit regulation
 Regulations are the primary vehicles
that executive branch agencies use to
interpret and enforce statutes
 Sub-Regulatory guidance includes Dear
Colleague Letters, forms, Audit Guide

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Legislation VS. Regulation
• Regulations
 Promulgated by appropriate
federal agency
•U.S. Department of Education
•Reviewed by Office of Management
and Budget (OMB)
 Interprets and adds detail to
statute
 Amends Code of Federal
Regulations (C.F.R.)

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Regulatory Process
• Negotiated Rulemaking (Neg-Reg)
 Mandated by the Higher Education
Act (HEA)
 All rules implementing changes to
the Higher Education Act, and
revisions to regulations, are
subject to this process
 Secretary consults with the
“community”

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Regulatory Process
• New/amended regulations initially
published in the Federal Register
 Notice of Proposed Rulemaking
(NPRM)
• Comment periods 30, 45, 60, or 120
days
 Final Rules
• Effective date 45-days following
publication or
• Later date published in Federal Register
 Notices
• Regulations compiled once a year

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Regulatory Process - Master
Calendar
• Rules must be published by the
preceding November 1 to be effective
for an academic year
 Example: rules published by
November 1, 2007 will be effective
on July 1, 2008 for 2008-2009
award year
 Secretary may permit earlier
implementation

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Title IV Regulations -
Federal Register
• The official daily
compilation of
federal
regulations and
notices
• prepared by the
NARA; published
by GPO
• Available on
online or in
hardcopy
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Title IV Regulations -
Code of Federal Regulations
• Codification of the
regulations
• Divided into 50
titles; Title 34
governs federal
financial aid
• Updated once each
calendar year
• Available online or in
hardcopy

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How Regulations Are
Numbered
• Title - 34
• Part – numbers 600 thru 694
• Subpart – numbers following the
decimal point
• Section – small letter, e.g. (a)
• Explanatory Subsections
– (1)(i)(A)
• Example: the Standards of
Administrative Capability Regulatory
Cite is 34 CFR 668.16
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Guidance vs. Laws and/or
Regulations
• Guidance is information that provides
direction or advice as to a decision or
course of action
• Guidance, as related to the Title IV
programs, is
 Issued by ED
 Helps financial aid administrators
interpret laws/regs
 Administered in several different
forms
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Title IV Guidance -
FSA Handbook
• Primary resource
for financial aid
administrators
• Provides “plain
language”
explanation of
laws and
regulations
• Published annually
• Available online or
in hardcopy
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Title IV Guidance -
The Blue Book
• Primary resource
for school
Business Office
• Available online
or in hardcopy

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Title IV Guidance -
Dear Colleague Letters
• Issued by ED to provide additional
policy/guidance
 Q&A’s
 Technical information
 Introduce new rules
 Explain rules in existence
 Explain policies

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Dear Colleague Letter
Numbering
 ANN Training Announcements
 CB Campus-based Programs
 FP Financial Partners (FFEL
lenders & guarantee agencies)
 GEN General Distribution
P Pell Grant Program
 DLB Direct Loan Bulletins

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Dear Colleague Letter
Numbering
GEN-07-02
GEN = type of letter
07 = calendar year
02 = number of letter in that
calendar year

Second GEN letter in 2007

Title IV Guidance -
Electronic Announcements
• Less formal memos/letters from
Senior FSA staff to assist schools
• Provide updates, guidance,
reminders, notices
• Delivered electronically
 Sent to SAIG mailbox
 Listed on IFAP by date

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Where can I find this
information?
• IFAP – ifap.ed.gov
•

• FAP Portal – fsa4schools.ed.gov

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Federal Student
Aid (FSA)
Handbook
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 Order hardcopies of
Handbooks, Blue Books,
CFRs and other items

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What’s Involved? - Review
• The Law – Higher Education Act of
1965, as amended
 Created by Congress
• Regulations – implement the Law
 Created by ED through negotiated
rulemaking process
• Dear Colleague Letters
 Issued by ED to provide additional
policy/guidance
• Electronic Announcements
 Less formal information from ED to
assist schools
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Legislation and Regulation

Now You’re An Expert!!!

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Contacts
We appreciate your feedback and
comments.
We can be reached at:
Devin Croft
• Phone: (303) 844-3677 ext. 125
• Email: devin.croft@ed.gov

Margaret Day
• Phone: (303) 844-3677 ext. 127
• Email: margaret.day@ed.gov

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Please provide any comments
regarding this training or the
trainers to:

Jo Ann Borel
Title IV Training Supervisor
joann.borel@ed.gov
202-377-3930

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