hot off the press the negotiated rulemaking process and final regulations brendan furey american...
TRANSCRIPT
Hot Off the PressHot Off the PressThe Negotiated Rulemaking The Negotiated Rulemaking
Process and Final RegulationsProcess and Final Regulations
Brendan FureyBrendan FureyAmerican Student AssistanceAmerican Student Assistance
Zack GoodwinZack GoodwinHarvard UniversityHarvard University
Today we will….Today we will….
Outline the Negotiated Rulemaking Outline the Negotiated Rulemaking processprocess
Highlight the MASFAA Government Highlight the MASFAA Government Relations Committee response to the Relations Committee response to the Program Integrity NPRMProgram Integrity NPRM
Provide a concise overview of each Provide a concise overview of each section of the Final Rule section of the Final Rule
Note available resourcesNote available resources Respond to your questions and Respond to your questions and
concernsconcerns
What is Negotiated What is Negotiated Rulemaking?Rulemaking?
““Neg Reg” is the process by which Neg Reg” is the process by which laws passed by Congress are laws passed by Congress are negotiated by stakeholders and negotiated by stakeholders and opened for public comment before opened for public comment before being implemented formally through being implemented formally through regulationregulation
““Neg Reg” may also entail the review Neg Reg” may also entail the review of regulations already in existence, to of regulations already in existence, to ensure they are current and reflect ensure they are current and reflect administration prioritiesadministration priorities
HuhHuh??
““Neg Reg” is the process by Neg Reg” is the process by which which wewe may be involved in the may be involved in the development of regulationdevelopment of regulation
Congress passes new law or Administration requests regulatory review
Public hearings are held to determine Rulemaking topics
Negotiation teams are selected and Rulemaking meetings held
NPRM is published with a solicitation for public comment
Department of Education reviews comments and may make changes
Final Rule published
Master CalendarMaster Calendar
Public comment period for NPRM is Public comment period for NPRM is typically 45 daystypically 45 days
Final Rule must be published by Final Rule must be published by November 1 in order to require November 1 in order to require implementation by July 1 of the implementation by July 1 of the following yearfollowing year
2009-2010 Neg Reg2009-2010 Neg Reg
June 2009June 2009: Public hearings held : Public hearings held
November 2009 – January 2010November 2009 – January 2010: Negotiating Team : Negotiating Team meetingsmeetings
August 2010August 2010: NPRM on Program Integrity public comment : NPRM on Program Integrity public comment period closed period closed
September 2010September 2010: NPRM on Gainful Employment (New : NPRM on Gainful Employment (New Programs) public comment period closed Programs) public comment period closed
October 29, 2010October 29, 2010: Final Rule published on Program Integrity : Final Rule published on Program Integrity Issues and Gainful Employment (New Programs)Issues and Gainful Employment (New Programs)
-------- November 1, 2010November 1, 2010: Final Rule on Foreign Institutions : Final Rule on Foreign Institutions
published published
TimelineTimeline
Program Integrity IssuesProgram Integrity Issues Definition of a Credit HourDefinition of a Credit Hour State AuthorizationState Authorization Repeated CourseworkRepeated Coursework Written Agreements Between InstitutionsWritten Agreements Between Institutions Incentive CompensationIncentive Compensation Satisfactory Academic Progress (SAP)Satisfactory Academic Progress (SAP) High School Diploma High School Diploma Return of Title IV Funds: Compressed CoursesReturn of Title IV Funds: Compressed Courses Return of Title IV Funds: Taking AttendanceReturn of Title IV Funds: Taking Attendance VerificationVerification Misrepresentation Misrepresentation Ability to Benefit Ability to Benefit DisbursementsDisbursements Gainful Employment: Disclosures/New ProgramsGainful Employment: Disclosures/New Programs
MASFAA’s ResponseMASFAA’s Response On August 2, MASFAA’s Government Relations On August 2, MASFAA’s Government Relations
Committee submitted a response to the Committee submitted a response to the Program Integrity NPRM on 9 of 13 issues:Program Integrity NPRM on 9 of 13 issues:
Definition of a Credit HourDefinition of a Credit Hour Return of Title IV Funds: Compressed CoursesReturn of Title IV Funds: Compressed Courses Return of Title IV Funds: Taking AttendanceReturn of Title IV Funds: Taking Attendance Gainful Employment (Disclosures)Gainful Employment (Disclosures) State AuthorizationState Authorization VerificationVerification Incentive CompensationIncentive Compensation Satisfactory Academic ProgressSatisfactory Academic Progress MisrepresentationMisrepresentation
Definition of a Credit Definition of a Credit HourHour
An amount of work established by a school An amount of work established by a school to reasonably approximate to not less than to reasonably approximate to not less than 1 hour of classroom or direct faculty 1 hour of classroom or direct faculty instruction and a minimum of 2 hours of instruction and a minimum of 2 hours of out of class student work each week for out of class student work each week for approximately:approximately:
15 weeks for one semester or trimester15 weeks for one semester or trimester 10 to 12 weeks for one quarter hour of credit, or 10 to 12 weeks for one quarter hour of credit, or The equivalent amount of work over a different The equivalent amount of work over a different
amount of timeamount of time
The amount of work may include The amount of work may include laboratory work, internships, practica, laboratory work, internships, practica, studio work, and other academic work studio work, and other academic work leading to the awarding of credit hoursleading to the awarding of credit hours
Definition of a Credit Hour Definition of a Credit Hour Accrediting and State Agency Accrediting and State Agency
ProceduresProcedures
Accrediting agencies must review and Accrediting agencies must review and evaluate the reliability and accuracy of evaluate the reliability and accuracy of the school’s assignment of credit hoursthe school’s assignment of credit hours
This review must be part of the review This review must be part of the review for initial accreditation or pre-for initial accreditation or pre-accreditation or renewal of accreditationaccreditation or renewal of accreditation
Definition of a Credit Hour Definition of a Credit Hour Clock to Credit Hour ConversionClock to Credit Hour Conversion
The method of converting clock The method of converting clock hours to credit hours has been hours to credit hours has been updated so that:updated so that: A semester or trimester hour must A semester or trimester hour must
include at least 37.5 clock hours of include at least 37.5 clock hours of instructioninstruction
A quarter hour must include at least 25 A quarter hour must include at least 25 clock hours of instructionclock hours of instruction
State AuthorizationState Authorization
Generally, no mandate requiring a Generally, no mandate requiring a state licensing agencystate licensing agency
However, if a state licensing agency However, if a state licensing agency or requirement exists, then schools or requirement exists, then schools must comply with the state licensing must comply with the state licensing process in order to have access to process in order to have access to Federal aidFederal aid
Repeated CourseworkRepeated Coursework
Repeated coursework in a term-Repeated coursework in a term-based program may be counted in based program may be counted in the student’s enrollment statusthe student’s enrollment status
However, it can not be counted if it However, it can not be counted if it reflects more than one repetition of reflects more than one repetition of previously passed courses, or previously passed courses, or repetition of a previously passed repetition of a previously passed course due to the student failing course due to the student failing other courseworkother coursework
Written Agreements Written Agreements Between InstitutionsBetween Institutions
Creates a distinction between written Creates a distinction between written agreements between affiliated and agreements between affiliated and unaffiliated schoolsunaffiliated schools
Also requires schools with written Also requires schools with written agreements to provide a description agreements to provide a description of their arrangement to enrolled and of their arrangement to enrolled and prospective studentsprospective students
Incentive CompensationIncentive Compensation
Merit-based compensation for financial aid Merit-based compensation for financial aid or admissions staff is still allowedor admissions staff is still allowed
However, no commission, bonus, or other However, no commission, bonus, or other incentive payments may be directly or incentive payments may be directly or indirectly paid based on success in indirectly paid based on success in securing enrollments or financial aid to securing enrollments or financial aid to any persons or entities involved in student any persons or entities involved in student recruiting or admissions activities, or in recruiting or admissions activities, or in making decisions about the awarding of making decisions about the awarding of student financial assistancestudent financial assistance
Satisfactory Academic Satisfactory Academic Progress (SAP)Progress (SAP)
SAP regulations have been SAP regulations have been consolidated into one section of consolidated into one section of regulationsregulations
Confirms that SAP must be evaluated—Confirms that SAP must be evaluated— At the end of each payment period if the At the end of each payment period if the
educational program is equal to or shorter educational program is equal to or shorter than an academic year, orthan an academic year, or
At the end of each payment period or at At the end of each payment period or at least annually for all other programs least annually for all other programs (greater than an academic year)(greater than an academic year)
High School DiplomaHigh School Diploma
If there is reason to believe that the high If there is reason to believe that the high school diploma is not valid or was not school diploma is not valid or was not obtained from an entity that provides obtained from an entity that provides secondary school education, then the validity secondary school education, then the validity of the high school diploma must be evaluatedof the high school diploma must be evaluated
Schools must develop procedures to evaluate Schools must develop procedures to evaluate high school completion for these situationshigh school completion for these situations
Return of Title IV Funds: Return of Title IV Funds: Compressed CoursesCompressed Courses
For modules/compressed courses, a student For modules/compressed courses, a student who would otherwise be considered to have who would otherwise be considered to have withdrawn is not considered to have withdrawn is not considered to have withdrawn if the school obtains written withdrawn if the school obtains written confirmation at the time of withdrawal that confirmation at the time of withdrawal that he or she will attend a module that begins he or she will attend a module that begins later in the same payment periodlater in the same payment period
However, for a nonterm or nonstandard-However, for a nonterm or nonstandard-term program, that module must begin no term program, that module must begin no later than 45 days after the end of the later than 45 days after the end of the module the student ceased attendingmodule the student ceased attending
Return of Title IV Funds: Return of Title IV Funds: Taking AttendanceTaking Attendance
An “institution that is required to take An “institution that is required to take attendance” includes not only an attendance” includes not only an institution that is required to take institution that is required to take attendance by an outside entity, but also attendance by an outside entity, but also an institution that itself requires its faculty an institution that itself requires its faculty to take attendance in certain to take attendance in certain circumstancescircumstances
An “institution that is required to take An “institution that is required to take attendance” must use its attendance attendance” must use its attendance records to determine the withdrawal daterecords to determine the withdrawal date
VerificationVerificationPoliciesPolicies
The school must have written The school must have written Verification policies and procedures Verification policies and procedures that include the: that include the:
Time frame for an applicant providing Time frame for an applicant providing documentation documentation
Consequences of failure to provide Consequences of failure to provide documentation documentation
Method a school uses to notify students of Method a school uses to notify students of results of Verificationresults of Verification
Procedures to make any necessary changes to Procedures to make any necessary changes to FAFSA dataFAFSA data
VerificationVerificationSelectionSelection
The Department will publish each year a list of data The Department will publish each year a list of data items that may need to be verified, and will ‘target’ items that may need to be verified, and will ‘target’ Verification items for each student selectedVerification items for each student selected
Schools must verify all applicants selected for Schools must verify all applicants selected for Verification by the CPS, except if the applicant:Verification by the CPS, except if the applicant: DiesDies Does not receive Title IV aidDoes not receive Title IV aid Receives only unsubsidized student financial assistanceReceives only unsubsidized student financial assistance Transfers from another school and the new school obtains a Transfers from another school and the new school obtains a
letter from the prior school stating that Verification was letter from the prior school stating that Verification was completed and listing the transaction number of the completed and listing the transaction number of the applicable ISIRapplicable ISIR
No Verification is required for parental or spousal No Verification is required for parental or spousal information if the parents/spouse reside outside the information if the parents/spouse reside outside the U.S. and cannot be contacted via normal meansU.S. and cannot be contacted via normal means
VerificationVerificationAcceptable DocumentationAcceptable Documentation
To verify AGI:To verify AGI: A signed copy of the income tax return or a A signed copy of the income tax return or a
joint return signed by one of the filersjoint return signed by one of the filers IRS Form W–2, orIRS Form W–2, or An acceptable reason for the tax return to not An acceptable reason for the tax return to not
be able to be providedbe able to be provided
To verify the number of family members:To verify the number of family members: A signed statement (dependent student must A signed statement (dependent student must
have both the applicant and one of the have both the applicant and one of the applicant’s parents) applicant’s parents)
Statement must list name, age, and the Statement must list name, age, and the relationship of each family memberrelationship of each family member
VerificationVerificationInterim DisbursementsInterim Disbursements
Schools may make interim disbursements Schools may make interim disbursements prior to receipt of an updated ISIR to prior to receipt of an updated ISIR to alleviate a hardship caused by the delay in alleviate a hardship caused by the delay in receiving financial aid, provided that receiving financial aid, provided that corrections have already been sent to ED for corrections have already been sent to ED for reprocessingreprocessing
However, if a corrected ISIR/SAR is not However, if a corrected ISIR/SAR is not received by the required deadlines, the received by the required deadlines, the school must reimburse the applicable school must reimburse the applicable program(s) using institutional fundsprogram(s) using institutional funds
VerificationVerificationConsequences of Revised FAFSA Consequences of Revised FAFSA
InformationInformation
The school must adjust the aid package The school must adjust the aid package based on the revised ISIR/SARbased on the revised ISIR/SAR The Pell award must be recalculated based on The Pell award must be recalculated based on
the revised EFC and any additional funds paidthe revised EFC and any additional funds paid However, if the Pell award is reduced as a However, if the Pell award is reduced as a
result of Verification, the school must either:result of Verification, the school must either: Adjust subsequent disbursementsAdjust subsequent disbursements Require the applicant to repay the overpayment, orRequire the applicant to repay the overpayment, or Pay the amount from institutional fundsPay the amount from institutional funds
MisrepresentationMisrepresentation
If ED determines a school engaged in If ED determines a school engaged in substantial misrepresentations, then substantial misrepresentations, then ED may:ED may: Revoke the Participation AgreementRevoke the Participation Agreement Impose limitations on the school’s Impose limitations on the school’s
participation in Title IV programsparticipation in Title IV programs Deny Participation applicationsDeny Participation applications Initiate legal proceedings against the Initiate legal proceedings against the
schoolschool
Ability to BenefitAbility to Benefit
Clarifies Ability to Benefit regulations to Clarifies Ability to Benefit regulations to provide that a student is eligible for Title IV provide that a student is eligible for Title IV funds after successfully completing six credits funds after successfully completing six credits of college work, or the equivalentof college work, or the equivalent
The coursework completed may be part of The coursework completed may be part of any eligible program offered by the schoolany eligible program offered by the school
The aid may be disbursed after the end of the The aid may be disbursed after the end of the payment period during which the student payment period during which the student successfully completed the requisite successfully completed the requisite courseworkcoursework
DisbursementsDisbursements
The school must provide a way for The school must provide a way for Pell Grant-eligible students to obtain Pell Grant-eligible students to obtain or purchase required books and or purchase required books and supplies by no later than the 7th day supplies by no later than the 7th day of the payment period if, 10 days of the payment period if, 10 days before the payment period:before the payment period: The school could disburse the student’s The school could disburse the student’s
funds, andfunds, and Disbursing those funds would result in a Disbursing those funds would result in a
credit balancecredit balance
Gainful Employment Gainful Employment DisclosuresDisclosures
Schools must report and disclose the: Schools must report and disclose the: Occupations the program prepares students forOccupations the program prepares students for On-time completion rateOn-time completion rate The full cost of attendance for the programThe full cost of attendance for the program Placement rate based on methodology from Placement rate based on methodology from
the accrediting agency or State, until the the accrediting agency or State, until the National Center for Education Statistics (NCES) National Center for Education Statistics (NCES) begins publishing a placement ratebegins publishing a placement rate
The median loan debt for studentsThe median loan debt for students
Schools must provide this information on Schools must provide this information on the program's home page and promotional the program's home page and promotional materials in a simple and meaningful materials in a simple and meaningful mannermanner
Gainful Employment Gainful Employment New ProgramsNew Programs
Schools wishing to offer new programs Schools wishing to offer new programs leading to gainful employment must apply leading to gainful employment must apply for recognition of each programfor recognition of each program
Schools will submit notices 90 days prior Schools will submit notices 90 days prior to offering a new program that include: to offering a new program that include:
Narrative explanation of how the program was Narrative explanation of how the program was developed and how it meets market needsdeveloped and how it meets market needs
Documentation of accreditor approval of the programDocumentation of accreditor approval of the program
Approval process may changed in the Approval process may changed in the future, in consideration of Negotiated future, in consideration of Negotiated Rulemaking on gainful employment Rulemaking on gainful employment performance measures (metrics)performance measures (metrics)
Gainful Employment Gainful Employment MetricsMetrics
Repayment Rate The percentage of the outstanding principal
balance of the Federal loans taken by the academic program’s former students who entered repayment in the previous four years that has been repaid
Debt-to-Earnings Ratio For the academic program’s completers, the
average educational loan payments (Federal, private, and institutional financing plans) as a proportion of the borrower’s income (either discretionary income or average annual earnings). Loan payment amount based on a 10-year amortization schedule at 6.8 percent
When must these When must these regulations be regulations be implemented?implemented?
All regulations must be implemented byAll regulations must be implemented byJuly 1, 2011July 1, 2011
EXCEPTEXCEPT
VerificationVerification July 1, 2012July 1, 2012
State Authorization State Authorization July 1, 2012 or 2013 -- only with approved extensionsJuly 1, 2012 or 2013 -- only with approved extensions
Gainful Employment: New ProgramsGainful Employment: New Programs July 1, 2011 or later pending release of OMB Control July 1, 2011 or later pending release of OMB Control
NumberNumber
Help!?Help!?
U.S. Department of Education Negotiated U.S. Department of Education Negotiated Rulemaking website:Rulemaking website:
http://www2.ed.gov/policy/highered/reg/hearulemaking/2009/negreg-summerfall.html
U.S. Department of Education Federal U.S. Department of Education Federal Register website:Register website:
http://www2.ed.gov/news/fedregister/index.html
Help!?Help!?
National Association of Student Financial Aid National Association of Student Financial Aid Administrators (NASFAA):Administrators (NASFAA):
www.nasfaa.org
National Association of College and University National Association of College and University Business Officers (NACUBO):Business Officers (NACUBO):
www.nacubo.org
National Association of Independent Colleges and National Association of Independent Colleges and Universities (NAICU):Universities (NAICU):
www.naicu.org
Association of Public and Land-Grant Universities Association of Public and Land-Grant Universities (APLU):(APLU):
www.aplu.org
Questions?Questions?
Contact usContact us
Brendan FureyBrendan FureyManager of ComplianceManager of Compliance
American Student American Student AssistanceAssistance
[email protected]@asa.org
Zack GoodwinZack GoodwinDirector of Financial AidDirector of Financial Aid
Harvard UniversityHarvard University
Division of Continuing Division of Continuing EducationEducation
Thank you!Thank you!