Session 39

Uncover the Mysteries of How a

Law Becomes Operational

Angela Smith

Kevin CampbellBill

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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

• Campus Based Programs

– FSEOG, FWS, Federal Perkins Loans

• FFELP/FDLP

• ACG/SMART

• Other

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Who’s Responsible?

• Congress

– Creation and

modification of

programs

– Need analysis formula

– Maximum grant and

loan amounts

– Amount of funding

– Executive Branch

– Cash management

– Audit criteria

– Enforcement (L, S & T)

– FAFSA design

– Reporting requirements

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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)

Senate Majority LeaderBill Frist (R, TN)

Speaker of the HouseDennis Hastert (R, IL)

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Leadership in the New Congress

Senator Harry Reid, D. Nevada

Senate Majority Leader

Representative Nancy Pelosi, D. California

Speaker of the House of Representatives

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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

• Authorization Legislation:

– Introduced by a Representative or Senator to

amend or create a Federal statute

• Appropriations 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?

• 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 virtually all Federal Higher Education Programs

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Why Reauthorization?

• Reauthorization Provides the Opportunity for Thoughtful

Congressional Review

– Public hearings

– More time to consider ideas

– Ability to review fundamental issues

• Access

• Choice

• Eligibility

• Subsidies

• Accountability

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Current Reauthorization

• Process Underway Since Late 2002

• Many Issues Incorporated into Higher Education Reconciliation Act (HERA)

– Loan program extended

– Loan limits increased

– Origination fees reduced

– Graduate students may borrow under the PLUS program

• Other Issues Still Unresolved

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Hand-off to the Executive Branch

• Presidential Signature Required on All Changes to Statute

– Date of enactment is date President signs a bill into law

– President becomes anactive player in shaping final bill

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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 Partner Letters, forms, Audit Guides

Secretary of EducationMargaret Spellings

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Legislation VS. Regulation

• Regulations

– Promulgated by appropriate Federal agency

• U.S. Department of Education for Higher Education

Programs

• 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, 2006

will be effective on July 1, 2007 for 2007-2008

academic year

– Secretary may permit, but not require, 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: Federal Student Aid Handbook

• Primary resource financial aid administrators

• Provides “plain language” guidance of laws and regulations

• Published annually

• Available online or in hardcopy

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Title IV Guidance: The Blue Book

• Provides guidance to those

responsible for managing

Title IV FSA program

funds (e.g. Business

Office, Comptroller’s

Office, Treasurer, etc.)

• Available online or in

hardcopy

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Title IV Guidance:Dear Colleague/Partner 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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Title IV Guidance:Dear Colleague/Partner Letters, con’t.

• ANN: Training Announcements

• CB: Campus-based Programs Letters

• GEN: General Distribution Letters

• P: Pell Grant Program

• DLB: Direct Loan Bulletins

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Title IV Guidance:Dear Colleague/Partner Letters, con’t.

• How DCLs/DPLs are numbered example:

– CB-06-11: Eleventh Campus-Based DCL issued in 2006

• Recent DCLs/DPLs

–  CB-06-13: 06/07 Supplemental Campus-Based Awards

– ANN-06-10: HERA Workshops

– GEN-06-15: National SMART Grant - Revised List of Eligible Majors

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Title IV Guidance:Electronic Announcements

• Less formal bulletins, memos and 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

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• 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 Department of Education (ED) and others

• Dear Partner/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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We appreciate your feedback and comments.We can be reached at:

• Name: Kevin Campbell

• Phone: 214-661-9488

• Fax: 214-661-9662

• Email:

kevin.campbell@ed.gov

• Name: Angela Smith

• Phone: 312-886-8341

• Fax: 312-886-6737

• Email:

angela.smith@ed.gov