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On September 20, 1996, the Department of Education published in the Federal Register a Notice of Proposed Rulemaking (NPRM) for the Student Assistance General Provisions (34 CFR Part 668). In the NPRM, the Secretary proposed new standards of financial re

FR part
III
Attachments:
PublicationDate: 2/18/97
FRPart: III
RegPartsAffected:
PageNumbers: 7333-7334
Summary: On September 20, 1996, the Department of Education published in the Federal Register a Notice of Proposed Rulemaking (NPRM) for the Student Assistance General Provisions (34 CFR Part 668). In the NPRM, the Secretary proposed new standards of financial responsibility (60 FR 49552-49574) that would apply to all institutions participating in a program authorized by title IV of the Higher Education Act of 1965, as amended (title IV, HEA programs).
On December 18, 1996, the Secretary published a Notice in the Federal Register (61 FR 66854) reopening the comment period on particular parts of the NPRM until February 18, 1997. The Secretary reopened the comment period in response to public comment received on the NPRM that the higher education community needed more time to analyze the proposed financial standards and provide the Secretary with additional comment based on that analysis.
The Secretary is further extending the reopened comment period. The Secretary is doing so to allow the higher education community to comment on information regarding the proposed ratio methodology, some of which will not be available to the public before the expiration of the reopened comment period on February 18.
CommentDueDate: 3/24/97

  
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[Federal Register: February 18, 1997 (Volume 62, Number 32)]
[Proposed Rules]
[Page 7333-7334]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr18fe97-29]


[[Page 7333]]

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Part III





Department of Education





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34 CFR Part 668



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Student Assistance General Provisions; Proposed Rule


[[Page 7334]]



DEPARTMENT OF EDUCATION

34 CFR Part 668


Student Assistance General Provisions

AGENCY: Department of Education.

ACTION: Extension of comment period and notification of the
availability of additional information.

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SUMMARY: On September 20, 1996, the Department of Education published
in the Federal Register a Notice of Proposed Rulemaking (NPRM) for the
Student Assistance General Provisions (34 CFR Part 668). In the NPRM,
the Secretary proposed new standards of financial responsibility (60 FR
49552-49574) that would apply to all institutions participating in a
program authorized by title IV of the Higher Education Act of 1965, as
amended (title IV, HEA programs).
On December 18, 1996, the Secretary published a Notice in the
Federal Register (61 FR 66854) reopening the comment period on
particular parts of the NPRM until February 18, 1997. The Secretary
reopened the comment period in response to public comment received on
the NPRM that the higher education community needed more time to
analyze the proposed financial standards and provide the Secretary with
additional comment based on that analysis.
The Secretary is further extending the reopened comment period. The
Secretary is doing so to allow the higher education community to
comment on information regarding the proposed ratio methodology, some
of which will not be available to the public before the expiration of
the reopened comment period on February 18.

DATES: Comments must be received on or before March 24, 1997.

ADDRESSES: All comments concerning this notice or the notice of
proposed rulemaking should be addressed to Mr. David Lorenzo, U.S.
Department of Education, P.O. Box 23272, Washington, D.C. 20026, or to
the following internet address: fin__resp@ed.gov

FOR FURTHER INFORMATION CONTACT: Mr. David Lorenzo or Mr. John Kolotos,
U.S. Department of Education, 600 Independence Avenue, S.W., Room 3045
ROB-3, Washington, D.C. 20202, telephone (202) 708-7888. Individuals
who use a telecommunications device for the deaf (TDD) may call the
Federal Information Relay Service (FIRS) at 1-800-877-8339 between 8
a.m. and 8 p.m., Eastern standard time, Monday through Friday.

Background

On September 20, 1996, the Secretary published an NPRM proposing
new standards of financial responsibility based on a ratio methodology
developed in consultation with the accounting firm of KPMG Peat Marwick
LLP (KPMG), alternative standards of financial responsibility and other
requirements under a proposed Subpart L of the Student Assistance
General Provisions regulations, and compliance and financial statement
audit requirements under Subpart B of these regulations. On November
29, 1996, the Secretary published a Notice of Final Regulations
amending Subpart B of the Student Assistance General Provisions
regulations and making a conforming amendment to Sec. 600.5 of the
Institutional Eligibility regulations.
However, the Secretary did not codify in the November 29, 1996
final regulations the general standards of financial responsibility,
alternative standards, and change of ownership requirements proposed
under Subpart L. Instead, the Secretary decided to obtain additional
comment and information from the higher education community, and
delayed promulgating final regulations for these provisions pending an
extended review of that comment and information. Accordingly, on
December 18, 1996, the Secretary published a Notice reopening the
comment period until February 18, 1997. In that Notice, the Secretary
identified the proposed provisions for which additional comment could
be submitted and solicited comment on specific issues relating to those
provisions.
In the meantime, the Secretary has retained KPMG to assist the
Department in gathering additional data and in reexamining the proposed
ratio methodology in light of those data and the issues raised by
commenters. As the Department and KPMG reexamine the proposed ratio
methodology and generate information that can be shared with the
community, the Secretary will make that information available through
meetings and by other means. To provide an opportunity for the public
to comment on this additional information, and to ensure that the
community's views and analyses of this information are incorporated in
the regulatory record, the Secretary extends the current comment
period.
While the Secretary will continue to evaluate comments already
submitted, the Secretary is particularly interested in receiving
comments on new information the Department makes available. Interested
parties may obtain this information from the financial responsibility
section of the Department's web site at the following URL address:
http://www.ed.gov/offices/OPE/PPI. This web site also contains
instructions for downloading earlier Federal Register publications and
other documents relating to financial responsibility.

Dated: February 13, 1997.
David A. Longanecker,
Assistant Secretary for Postsecondary Education.
[FR Doc. 97-4054 Filed 2-14-97; 8:45 am]
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Last Modified: 02/25/1998