Is It “NEG REG” or “REG NEG”?

Jeff Baker Program Development Division Student Financial Assistance
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“NEG REG” or “REG NEG”
HTHE STATUTES

AGENDA

HTHE LEGISLATIVE PROCESS

HTHE SECRETARY’S RESPONSIBILITIES HTHE REGULATIONS HNEGOTIATED RULEMAKING HTHE REQUIREMENT HTHE RESPONSIBILITY
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HNEGOTIATED RULEMAKING -continued HTHE STEPS HTHE MEMBERS HRULEMAKING STEPS H2000 PROPOSED RULES

AGENDA - continued

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THE STATUTES
H THE HIGHER EDUCATION ACT OF 1965, as amended H The Department of Education Organization Act H The Privacy Act H The Freedom of Information Act H Others
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(20 U.S.C. 1001, et.seq.).

HIGHER HTitle I: HTitle IV: H Part A: H Part B: H Part C: H Part D: H Part E:

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EDUCATION ACT OF 1965 Institutional Eligibility Student Assistance Grants - Pell,FSEOG,etc. FFELP FWS Direct Loans Perkins Loans
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HIGHER EDUCATION ACT OF 1965 HTitle IV: Student Assistance H Part F: Needs Analysis and COA H Part G: General Provisions-Student Eligibility, etc. H Part H: Program Integrity

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Legislative Process HAuthorizing Committees HRequest Proposals HHold Hearings HDraft Proposed Legislation HDebate Proposals HApprove Bill for Submission to Respective House
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Legislative Process HFull House and Senate HDebate Proposed Law HPass Their Version of Bill HAppoint Conference Committee Member HConference Committee HReconcile Bills HVotes on Final Language HRefers Final Language to Houses
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Legislative Process HFull House and Senate HDebate Proposed Law HFloor Amendments HPass Final Legislation HEnrolled Bill HSent to President HPresident Signs Into Law HSecretary Implements
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Secretary of Education’s Responsibility HAdvise Congress HPropose Legislation HProvide Technical Assistance HAssist with Constituent Issues HRegulates Where Needed HEnforces Law and Regulations HCommunicates With Interested Parties and the Public
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“NEG REG” or “REG NEG”

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The HEA The Regulations

HEA

The Reg ulati ons

And Think:
We Started With Just 10 Commandments
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“NEG REG” or “REG NEG”
Code of Federal Regulations Chapter 34 (34 CFR)

HPart 86 - DRUG-FREE SCHOOLS HPart 99 - FAMILY EDUC RIGHTS AND PRIVACY (FERPA) HPart 600 - INSTITUTIONAL ELIG. HPart 602 - ACCREDITING AGENCIES HPart 603 - STATE AGENCIES
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The Regulations - continued H Part 668 - GENERAL PROVISIONS H Part 673 - GEN PROVISIONS Campus Based Programs H Part 674 - FEDERAL PERKINS LOAN H Part 675 - FEDERAL WORK-STUDY H Part 676 - FEDERAL SEOG
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The Regulations - continued HPart 682 - FFEL HPart 685 - FEDERAL DIRECT LOAN HPart 690 - FEDERAL PELL GRANT HPart 692 - LEAP/Special LEAP (SSIG) HPart 693 - GEAR UP (NEISPP)

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Negotiated Rulemaking (NEG REG) H Required by the HEA (Sec. 492A) H All parts of Title IV -- All the time

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H Goal: To develop Notices of Proposed Rulemaking (NPRM) that reflect a final consensus of the negotiating committee H Consensus: There must be no dissent by any member for the committee to have reached consensus.
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2000 Negotiated Rulemaking HSecretary Delegated, Under the Deputy Secretary, Responsibility to: HMaureen McLaughlin, Deputy Assistant Secretary, OPE HJack Kristy, Acting Deputy General Counsel HStarted February 3, 2000 HTwo Teams HI. Loan Issues HII. Other Issues 16

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Neg Reg Process HSecretary Holds Meetings to Consider Proposed Topics HSecretary Proposes Topics HMeetings with Interested Parties to Discuss Neg Reg Process HSolicit Nominations for Neg Reg NonFederal Members HSelect Non-Federal Members
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H American Association of Collegiate Registrars and Admissions Officers H American Association of Cosmetology Schools H American Association of State Colleges and Universities H American Association of Community Colleges H American Council on Education H Association of Jesuit Colleges and Universities H Career College Association
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Non-Federal Members

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H Coalition of Higher Education Assistance Organizations H Coalition of Publicly Traded Educational Institutions H Consumer Bankers Association H Education Finance Council H Education and Loan Management Resources H Legal Services H NAFSA: Association of International Educators 19

Non-Federal Members

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“NEG REG” or “REG NEG”
H National Accrediting Commission of Cosmetology Arts and Sciences H National Association of College and University Business Officers H National Association of Independent Colleges and Universities H National Association of Student Financial Aid Administrators H National Association for State Student Grant and Aid Programs
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Non-Federal Members

“NEG REG” or “REG NEG”
H National Association of State Universities and Land-Grant Colleges H National Association of Student Loan Administrators H National Council of Higher Education Loan Programs H National Direct Student Loan Coalition H Sallie Mae, Inc. H Student Loan Servicing Alliance
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Non-Federal Members

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H The College Fund/United Negro College Fund H United States Student Association H US Public Interest Research Group H University Continuing Education Association.

Non-Federal Members

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Neg Reg Process - continued H Committee Approves Protocols HCommittee Finalizes Agenda Topics HED Submits Thoughts and Ideas HCommittee Reacts HNegotiations Begin HED Provides Draft Regulatory Language HNegotiations Continue
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Neg Reg Process - continued H Negotiations Continue H Negotiations Continue H Consensus Reached HNPRM Regulatory Language Published as Agreed H No Consensus Reached H Secretary Publishes without regard to negotiations
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Rulemaking Steps H ED Writes Preambles H Internal Review of NPRM Package HDeputy Secretary HOMB HBudget Implications HOPE Approval HSFA Approval HNeg Reg Committee Reviews Preambles
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“NEG REG” or “REG NEG”
Rulemaking Steps - continued HED May Make Changes to Preambles HSecretary’s Approval HNPRM Published HSubmitted to the Federal Register HPosted to IFAP H30- 90 Day Comment Period ED HED Reviews Comments HED Decides on Changes
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Rulemaking Steps - continued H ED Writes Analysis of Comments and Changes, if any H Internal Approval (Same as for NPRM) H Submits for Publication in the Federal Register - Publish by November 1 H Final Rule Effective Usually Following July 1.

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Proposed Rules (NPRMs) HTo Be Published in July -H H H H H H H H Cohort Default Rates Federal Perkins Loans Guaranty Agency Due Diligence, etc. Teacher Loan Forgiveness (FFEL/DL) Death and Disability Discharges General Provisions Issues Special LEAP (SLEAP) Cash Management
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FFEL/DL Cohort Default Rates H Restructure and revise cohort default rate provisions for clarity and consistency. H Change of ownership - Branches, locations, mergers, acquisitions, etc. H Revised Treatment when rate > 40% H Definition of Default for ICR Payments
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Federal Perkins Loan H Clarification of Collection Rate for Rehabilitated Loans H Bankruptcy Filing for State Schools H Easier Assignment of Defaulted Loans

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Guaranty Agency Due Diligence, etc.

HStreamlined Post-Default Due Diligence HClosed School Discharges HRetroactive Deferments HLow Income Deferment Based on AGI or Monthly Income

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Teacher Loan Forgiveness

HAmount: $5,000 (FFEL and DL) HBorrower Eligibility

HNew Borrower as of 10/1/98 HFive Years Teaching on Low-Income School HAt Least One Year After 1997-98
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Death & Disability Discharges

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H OIG Report H All Three Title IV Loan Programs H Establish stronger evidentiary requirements for death discharges. H Modify Definition of Disability
H Remove Return to School Condition H SSA Determination ???
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Death & Disability Discharges H Establish Conditional Discharge H Suspension of Collections H Three to Five Years H No Interest Accrual H Earnings Thresholds H Income H Months H Loan Discharged or Activated
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General Provisions HChange of Ownership H Publicly traded corporation. H Public institutions. HApplication procedures HBranches/Additional Locations H Elimination of Paper Financial Aid Transcripts (FATs)
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Special LEAP (SLEAP) HImplements New State Run Program HState Matching Requirements HState MOE Requirements HCalculation of State Award HDefine Eligible Students

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Special LEAP (SLEAP) Permissible Activities HIncrease grants awarded in LEAP HTransition programs to postsecondary HGrants for students who wish to enter careers in information technology or other fields of study determined by the State to be critical to the State’s workforce needs. HCommunity service work-study activities
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Special LEAP (SLEAP) Permissible Activities HScholarship program for students who wish to enter teaching. HScholarship program for students who wish to earn a degree in mathematics, computer science, or engineering. HEarly intervention programs, mentoring programs, and career education programs. HMerit or academic scholarships to eligible students. 38
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Cash Management -FFEL Delivery

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HModify Rule for Re-Checking Eligibility H Similar to Secretary’s Just-in-Time H FFELP “Hold and Release” Process

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