Is It “NEG REG” or “REG NEG”?

Jeff Baker Program Development Division Student Financial Assistance
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“NEG REG” or “REG NEG”
5THE STATUTES

AGENDA

5THE LEGISLATIVE PROCESS

5THE SECRETARY’S RESPONSIBILITIES 5THE REGULATIONS 5NEGOTIATED RULEMAKING 5THE REQUIREMENT 5THE RESPONSIBILITY
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“NEG REG” or “REG NEG”
5NEGOTIATED RULEMAKING -continued 5THE STEPS 5THE MEMBERS 5RULEMAKING STEPS 52000 PROPOSED RULES

AGENDA - continued

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“NEG REG” or “REG NEG”
THE STATUTES
5 THE HIGHER EDUCATION ACT OF 1965, as amended
(20 U.S.C. 1001, et.seq.).

5 The Department of Education Organization Act 5 The Privacy Act 5 The Freedom of Information Act 5 Others
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HIGHER 5Title I: 5Title IV: 5 Part A: 5 Part B: 5 Part C: 5 Part D: 5 Part E:

“NEG REG” or “REG NEG”

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 5Title IV: Student Assistance 5 Part F: Needs Analysis and COA 5 Part G: General Provisions-Student Eligibility, etc. 5 Part H: Program Integrity

“NEG REG” or “REG NEG”

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NEG REG” or “REG NEG”

Legislative Process 5Authorizing Committees 5Request Proposals 5Hold Hearings 5Draft Proposed Legislation 5Debate Proposals 5Approve Bill for Submission to Respective House
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“NEG REG” or “REG NEG”
Legislative Process 5Full House and Senate 5Debate Proposed Law 5Pass Their Version of Bill 5Appoint Conference Committee Member 5Conference Committee 5Reconcile Bills 5Votes on Final Language 5Refers Final Language to Houses
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“NEG REG” or “REG NEG”
Legislative Process 5Full House and Senate 5Debate Proposed Law 5Floor Amendments 5Pass Final Legislation 5Enrolled Bill 5Sent to President 5President Signs Into Law 5Secretary Implements
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Secretary of Education’s Responsibility 5Advise Congress 5Propose Legislation 5Provide Technical Assistance 5Assist with Constituent Issues 5Regulates Where Needed 5Enforces Law and Regulations 5Communicates With Interested Parties and the Public
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“NEG REG” or “REG NEG”

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“NEG REG” or “REG NEG”
The HEA The Regulations

HEA

Th e

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)

5Part 86 5Part 99 -

DRUG-FREE SCHOOLS FAMILY EDUC RIGHTS AND PRIVACY (FERPA) 5Part 600 - INSTITUTIONAL ELIG. 5Part 602 - ACCREDITING AGENCIES 5Part 603 - STATE AGENCIES
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“NEG REG” or “REG NEG”
The Regulations - continued 5 Part 668 - GENERAL PROVISIONS 5 Part 673 - GEN PROVISIONS Campus Based Programs 5 Part 674 - FEDERAL PERKINS LOAN 5 Part 675 - FEDERAL WORK-STUDY 5 Part 676 - FEDERAL SEOG
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“NEG REG” or “REG NEG”
The Regulations - continued 5Part 682 - FFEL 5Part 685 - FEDERAL DIRECT LOAN 5Part 690 - FEDERAL PELL GRANT 5Part 692 - LEAP/Special LEAP (SSIG) 5Part 693 - GEAR UP (NEISPP)

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Negotiated Rulemaking (NEG REG) 5Required by the HEA (Sec. 492A) 5All parts of Title IV -- All the time 5Goal: To develop Notices of Proposed Rulemaking (NPRM) that reflect a final consensus of the negotiating committee 5Consensus: There must be no dissent by any member for the committee to have reached consensus.
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“NEG REG” or “REG NEG”

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“NEG REG” or “REG NEG”

2000 Negotiated Rulemaking 5Secretary Delegated, Under the Deputy Secretary, Responsibility to: 5Maureen McLaughlin, Deputy Assistant Secretary, OPE 5Jack Kristy, Acting Deputy General Counsel 5Started February 3, 2000 5Two Teams 5I. Loan Issues 16 We Help Put America Through Schoo 5II. Other Issues

“NEG REG” or “REG NEG”
Neg Reg Process 5 Secretary Holds Meetings to Consider Proposed Topics 5 Secretary Proposes Topics 5 Meetings with Interested Parties to Discuss Neg Reg Process 5 Solicit Nominations for Neg Reg NonFederal Members 5 Select Non-Federal Members
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“NEG REG” or “REG NEG”
5 American Association of Collegiate Registrars and Admissions Officers 5 American Association of Cosmetology Schools 5 American Association of State Colleges and Universities 5 American Association of Community Colleges 5 American Council on Education 5 Association of Jesuit Colleges and Universities 5 Career College Association
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Non-Federal Members

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“NEG REG” or “REG NEG”
Non-Federal Members

5 Coalition of Higher Education Assistance Organizations 5 Coalition of Publicly Traded Educational Institutions 5 Consumer Bankers Association 5 Education Finance Council 5 Education and Loan Management Resources 5 Legal Services 5 NAFSA: Association of International Educators 19 We Help Put America Through Schoo

“NEG REG” or “REG NEG”
5 National Accrediting Commission of Cosmetology Arts and Sciences 5 National Association of College and University Business Officers 5 National Association of Independent Colleges and Universities 5 National Association of Student Financial Aid Administrators 5 National Association for State Student Grant and Aid Programs
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Non-Federal Members

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“NEG REG” or “REG NEG”
5 National Association of State Universities and Land-Grant Colleges 5 National Association of Student Loan Administrators 5 National Council of Higher Education Loan Programs 5 National Direct Student Loan Coalition 5 Sallie Mae, Inc. 5 Student Loan Servicing Alliance
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Non-Federal Members

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“NEG REG” or “REG NEG”
5 The College Fund/United Negro College Fund 5 United States Student Association 5 US Public Interest Research Group 5 University Continuing Education Association.

Non-Federal Members

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“NEG REG” or “REG NEG”
Neg Reg Process - continued 5 Committee Approves Protocols 5Committee Finalizes Agenda Topics 5ED Submits Thoughts and Ideas 5Committee Reacts 5Negotiations Begin 5ED Provides Draft Regulatory Language 5Negotiations Continue
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“NEG REG” or “REG NEG”
Neg Reg Process - continued 5 Negotiations Continue 5 Negotiations Continue 5Consensus Reached 5NPRM Regulatory Language Published as Agreed 5No Consensus Reached 5 Secretary Publishes without regard to negotiations
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Rulemaking Steps 5 ED Writes Preambles 5 Internal Review of NPRM Package 5Deputy Secretary 5OMB 5Budget Implications 5OPE Approval 5SFA Approval 5Neg Reg Committee Reviews Preambles
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“NEG REG” or “REG NEG” NEG

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“NEG REG” or “REG NEG”
Rulemaking Steps - continued 5ED May Make Changes to Preambles 5Secretary’s Approval 5NPRM Published 5Submitted to the Federal Register 5Posted to IFAP 530- 90 Day Comment Period ED 5ED Reviews Comments 5ED Decides on Changes
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“NEG REG” or “REG NEG”
Rulemaking Steps - continued 5ED Writes Analysis of Comments and Changes, if any 5Internal Approval (Same as for NPRM) 5Submits for Publication in the Federal Register - Publish by November 1 5Final Rule Effective Usually Following July 1.

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“NEG REG” or “REG NEG”
Proposed Rules (NPRMs) 5To Be Published in July -5 5 5 5 5 5 5 5 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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NEG REG” or “REG NEG
FFEL/DL Cohort Default Rates 5 Restructure and revise cohort default rate provisions for clarity and consistency. 5 Change of ownership - Branches, locations, mergers, acquisitions, etc. 5 Revised Treatment when rate > 40% 5 Definition of Default for ICR Payments
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NEG REG” or “REG NEG
Federal Perkins Loan 5Clarification of Collection Rate for Rehabilitated Loans 5Bankruptcy Filing for State Schools 5Easier Assignment of Defaulted Loans

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“NEG REG” or “REG NEG”

Guaranty Agency Due Diligence, etc.

5Streamlined Post-Default Due Diligence 5Closed School Discharges 5Retroactive Deferments 5Low Income Deferment Based on AGI or Monthly Income

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“NEG REG” or “REG NEG”
Teacher Loan Forgiveness

5Amount: 5Borrower

5New Borrower as of 10/1/98 5Five Years Teaching on Low-Income School 5At Least One Year After 1997-98
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$5,000 (FFEL and DL) Eligibility

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Death & Disability Discharges

“NEG REG” or “REG NEG”

5 OIG Report 5 All Three Title IV Loan Programs 5 Establish stronger evidentiary requirements for death discharges. 5 Modify Definition of Disability
5 Remove Return to School Condition 5 SSA Determination ???
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Death & Disability Discharges 5 Establish Conditional Discharge 5 Suspension of Collections 5 Three to Five Years 5 No Interest Accrual 5 Earnings Thresholds 5 Income 5 Months 5 Loan Discharged or Activated
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“NEG REG” or “REG NEG”
General Provisions 5Change of Ownership 5 Publicly traded corporation. 5 Public institutions. 5Application procedures 5Branches/Additional Locations 5 Elimination of Paper Financial Aid Transcripts (FATs)
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“NEG REG” or “REG NEG”
Special LEAP (SLEAP) 5Implements New State Run Program 5State Matching Requirements 5State MOE Requirements 5Calculation of State Award 5Define Eligible Students

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Special LEAP (SLEAP) Permissible Activities 5Increase grants awarded in LEAP 5Transition programs to postsecondary 5Grants 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. 5Community service work-study activities
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“NEG REG” or “REG NEG”

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Special LEAP (SLEAP) Permissible Activities 5Scholarship program for students who wish to enter teaching. 5Scholarship program for students who wish to earn a degree in mathematics, computer science, or engineering. 5Early intervention programs, mentoring programs, and career education programs. 5Merit or academic scholarships to eligible 38 We Help Put America Through Schoo students.

“NEG REG” or “REG NEG”

Cash Management -FFEL Delivery

NEG REG” or “REG NEG

5Modify Rule for Re-Checking Eligibility 5 Similar to Secretary’s Just-in-Time 5 FFELP “Hold and Release” Process

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