Posted Date: July 3, 2017
Author: Lynn B. Mahaffie, Deputy Assistant Secretary for Policy, Planning, and Innovation, Office of Postsecondary Education
Subject: Cash Management Electronic Announcement #8 - Publication of a Federal Register Notice Regarding the Final Format of Disclosures for Student Financial Accounts
The cash management final regulations, published on October 30, 2015 (80 FR 67125), require institutions with Tier One (T1) and Tier Two (T2) arrangements to list and identify the major features and commonly assessed fees associated with each financial account offered under a T1 or T2 arrangement during the process through which a student chooses one of several options for receiving payments of Federal student aid. The regulations also state that an institution will be in compliance with this provision if, by July 1, 2017, it follows the format, content, and update requirements specified by the Secretary in a notice published in the Federal Register following consultation with the Consumer Financial Protection Bureau (CFPB).
On May 9, 2017, the Department of Education (Department) published a Request for Information (RFI) seeking feedback from the public regarding the proposed format, content, and update requirements for the disclosures (82 FR 21529). We received 10 comments on the RFI.
The Department will be publishing a Federal Register Notice that will contain the final suggested disclosure format for student financial accounts. That Notice will also include an announcement that gives institutions additional time--until January 1, 2018--to comply with the applicable disclosure requirements. While the notice is expected to be published in the Federal Register in the next several days, to ensure that institutions have access to this important information as early as possible, we have attached an unofficial copy of the Federal Register notice to this announcement.
Note: The official version of this document is the document published in the Federal Register. This document has been sent to the Office of the Federal Register but has not yet been scheduled for publication.