| DCLPublicationDate: 6/1/95 DCLID: GEN-95-30 AwardYear: Summary: Invitation to schools to submit proposals to become experimental sites for the purpose of testing alternative methods of administering Title IV student aid programs. JUNE 1995 GEN-95-30 Subject: Invitation to schools to submit proposals to become experimental sites for the purpose of testing alternative methods of administering Title IV student aid programs. Reference: Federal Register Notice (April 25, 1995) Dear Colleague: We believe that, over the course of the past year, we have made significant progress in simplifying regulations and administrative processes for the Federal student assistance programs. Our efforts were directed at reducing regulatory burden on institutions, students, and families, and increasing institutional flexibility. We are now in the process of undertaking a series of additional initiatives to free postsecondary schools from administrative burdens that unnecessarily draw resources away from their educational mission. One of these initiatives is the solicitation of proposals to reinvent the administration of Federal student assistance programs through the use of the experimental sites authority contained in Title IV of the Higher Education Act (HEA). On April 25, 1995, we published in the Federal Register a notice inviting institutions of higher education to propose one or more experiments that would test new ways of administering the Federal student assistance programs. It is our hope that this invitation will encourage institutions to develop truly innovative strategies that can relieve unnecessary burden while maintaining program accountability. We hope that the results of these "experiments" will assist the Department in its continuing efforts to improve Title IV program administration either through regulatory changes or, if appropriate, legislative proposals. As necessary, we will take advantage of Section 487A(d) of the HEA, which allows the Secretary to exempt experimental sites from any Title IV statutory or regulatory requirement that would bias the results of the experiment. Any institution that administers a Title IV program, or a group of these institutions, may submit a response to this invitation at any time by mailing a proposal to Jeff Baker, Director of Policy Development at the address provided at the end of this letter or by faxing it to him at (202) 205-0786. Early submission is encouraged, as we anticipate that the review of proposals will begin within the next 60 days; however, proposals that are received later will also be considered. We anticipate approving approximately 50 experiments in the first phase of this initiative and more after those experiments are in place. We particularly invite proposals from institutions that are participating in the William D. Ford Federal Direct Loan (Direct Loan) Program. The availability of comprehensive and timely management information under the Direct Loan Program permits effective monitoring, evaluation, and adjustment of administrative practices by participating institutions. We encourage these institutions to develop proposals that take advantage of this capability. Similarly, we encourage proposals from institutions that are participating in the Department's Institutional Quality Assurance Program and have developed their own comprehensive systems to identify and remedy problems in the administration of Title IV programs. Since we anticipate approving only a small number of different experimental solutions to any one problem, we encourage institutions to collaborate in the development of proposals and to submit proposals together. To aid in the Department's review, we suggest that each proposal be in the range of two to eight pages and that it answer the following questions: - What problem experienced by the institution or its students, or both, does the proposal address? - What is the institution's proposed solution to that problem? - From which specific statutory or regulatory requirements does the institution seek relief in order to test its proposed solution? -What performance measures or alternative actions does the institution propose to use to fulfill the underlying purpose of the requirements from which relief is sought? - For what period is the experiment proposed? - When and how will the results of the experiment be reported to the Department? - For an experiment proposed by a group of institutions, how will the group monitor and aggregate the results of the experiment? Examples that illustrate the elements of proposals were included in the Federal Register notice. Our inclusion of these examples and not others was in no way intended to circumscribe the creativity of the community in identifying problems and developing solutions to them. We will review each proposal submitted on its own merits. We may approve a proposal as submitted, reject it, or, if we find that a proposal is not fully approvable but has merit, work with the institution to refine it. If a proposal is approved, the participating institution's program participation agreement will be amended to reflect the terms of the experiment, including the obligations undertaken by the institution, the requirements from which the institution is relieved, the length of the experiment, and the right of either the institution or the Department to terminate the experiment. Proposals should be submitted to Jeff Baker, Director of Policy Development, Student Financial Assistance Programs, U.S. Department of Education, 600 Independence Avenue, S.W. (Room 3042, ROB-3), Washington, D.C., 20202. We hope you consider submitting a proposal under the experimental sites authority as we work together to enhance these important student financial assistance programs. Sincerely, Elizabeth M. Hicks Deputy Assistant Secretary for Student Financial Assistance |