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(GEN-11-18) Subject: Written Arrangements Between U.S. and Foreign Institutions

Publication Date: October 25, 2011

DCL ID: GEN-11-18

Subject: Written Arrangements Between U.S. and Foreign Institutions

Summary: This letter provides guidance on the Title IV, HEA program eligibility of educational programs offered through written arrangements between U.S. and foreign institutions.

Dear Colleague:

On November 1, 2010, the Department published in the Federal Register final regulations making changes to the requirements for foreign institutions that participate in the William D. Ford Direct Loan (Direct Loan) Program (75 FR 67170). The final regulations are available at http://www.ifap.ed.gov/fregisters/FR110110ForeignInstitutionsFinal.html. These regulations were generally effective July 1, 2011, except for regulations specific to foreign graduate medical schools, which were effective July 20, 2011.

In addition, on October 29, 2010, the Department published in the Federal Register final regulations on program integrity issues (75 FR 66832). The final regulations are available at http://www.ifap.ed.gov/eannouncements/110110PubFinalRulesforTitlveIVStudentAidPrgms.html. These final regulations made a number of changes to the regulations governing the programs authorized by the Higher Education Act of 1965, as amended (HEA), including provisions addressing written arrangements between two or more institutions, or organizations acting on behalf of a foreign institution, to have each of those parties provide part of an educational program. These regulations were generally effective July 1, 2011, except for revisions to Subpart E of part 668 of the Student Assistance General Provision regulations, Verification and Updating of Student Aid Application Information, which are effective July 1, 2012.

This letter provides additional guidance on the effects both regulations have on the Title IV, HEA eligibility of educational programs offered through written arrangements between U.S. and foreign institutions. This guidance is provided to assist institutions with understanding the changes to the regulations in this area and does not make any changes to the regulations. Affected parties are responsible for taking the steps necessary to comply by the effective dates established by the final regulations.

We encourage you to review the pertinent parts of the preambles to the notices of proposed rulemaking (NPRMs) and final regulations that address this issue, as well as the final regulations themselves:

 

NPRM preamble

Final regulations preamble

Final regulations

Foreign Institution Regulations

75 FR 42192-42195 July 20, 2010

75 FR 67171-67173 Nov. 1, 2010

75 FR 67194
Nov. 1, 2010

Program Integrity Regulations

75 FR 34814-34816 June 18, 2010

75 FR 66869-66872 Oct. 29, 2010

75 FR 66948 & 66954 Oct. 29, 2010

The final regulations are codified in 34 CFR Parts 600, 602, 603, 668, 682, 685, 686, 690, and 691.

Please note that although these preambles and regulations, as well as this letter, contain references to the "Title IV, HEA programs," the only Title IV, HEA program in which foreign institutions have been authorized to provide financial assistance since July 1, 2010, is the Direct Loan Program. In addition, please note that although the Department's regulations on foreign institutions as codified in the Code of Federal Regulations at 34 CFR Part 600, Subpart E, continue to contain a number of references to the Federal Family Education Loan Program, those references are obsolete.

If you have questions regarding the information provided in this letter, you may contact the Office of Federal Student Aid's Research and Customer Care Center staff. Staff is available Monday through Friday between the hours of 9 a.m. and 5 p.m. (Eastern Time) at 1-800-433-7327. After hours, calls will be accepted by an automated voice response system. Alternatively, you may e-mail the Care Center at fsa.customer.support@ed.gov. Foreign institutions may also contact the Office of Federal Student Aid's Foreign Schools Team at FSA.Foreign.Schools.Team@ed.gov or (202) 377-3168.

We thank you for your continued cooperation as we work to implement these regulations.

Sincerely,

Eduardo M. Ochoa
Assistant Secretary
Office of Postsecondary Education

Last Modified: 10/24/2011