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The Secretary amends the Student Assistance General Provisions regulations. These technical amendments are necessary to clarify the regulations and to remove the procedural requirement that recipient institutions include in any request for funds the Cata

FR part
VI
Attachments:
PublicationDate: 9/17/96
FRPart: VI
RegPartsAffected: Citation : (R)668.163


PageNumbers: 49041-49043
Summary: The Secretary amends the Student Assistance General Provisions regulations. These technical amendments are necessary to clarify the regulations and to remove the procedural requirement that recipient institutions include in any request for funds the Catalog of Federal Domestic Assistance (CFDA) number identifying the source of the funds and the amount of funds sought for each program included in the request. The Secretary takes action to defer this change in light of the information technology currently available to recipient institutions and the Department.
CommentDueDate:

  
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[


[Federal Register: September 17, 1996 (Volume 61, Number 181)]
[Rules and Regulations]
[Page 49041-49043]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr17se96-24]


[[Page 49041]]


_______________________________________________________________________

Part VI





Department of





Education





_______________________________________________________________________



34 CFR Part 668



Student Assistance General Provisions;



Final Rule


[[Page 49042]]


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DEPARTMENT OF EDUCATION

34 CFR Part 668


Student Assistance General Provisions

AGENCY: Department of Education.

ACTION: Final regulations.

-----------------------------------------------------------------------

SUMMARY: The Secretary amends the Student Assistance General Provisions
regulations. These technical amendments are necessary to clarify the
regulations and to remove the procedural requirement that recipient
institutions include in any request for funds the Catalog of Federal
Domestic Assistance (CFDA) number identifying the source of the funds
and the amount of funds sought for each program included in the
request. The Secretary takes action to defer this change in light of
the information technology currently available to recipient
institutions and the Department.

EFFECTIVE DATE: These regulations take effect on October 17, 1996.

FOR FURTHER INFORMATION CONTACT: Mr. John Kolotos, U.S. Department of
Education, 600 Independence Avenue, SW., ROB-3, room 3045, Washington,
DC 20202-5346. 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 time, Monday through Friday.

SUPPLEMENTARY INFORMATION: Section 668.163 (Requesting funds) contains
a requirement that each institution include in any request for cash the
CFDA number identifying the source of the requested funds and the
amount of funds for each program for which funds are sought in the
request (61 FR 61796; December 1, 1995). The Secretary has continued to
evaluate methods of requesting funds in light of refinements in
information technology now available to recipient institutions and to
the Department, and has decided to defer any change in this aspect of
the procedure for requesting cash until future award years. At that
time, the Secretary plans to make available to institutions a more
precise yet easily used request method that will better identify the
program authorization under which funds are requested. The procedural
requirement for identification by CFDA number will therefore no longer
be necessary.
Changes to Sec. 668.163(a)(3) were previously made in regulations
promulgated on June 30, 1995 (60 FR 34432) with the expressed intent of
clarifying the procedures for payment under the reimbursement funding
method. The language adopted there unfortunately suggested that the
procedures had been changed rather than merely clarified. Under the
reimbursement funding method, the Department reimburses an institution
for the amounts the institution has expended by disbursing its own
funds for the purpose of providing grant, loan, or work study
assistance to its students under Title IV of the Higher Education Act
of 1965, as amended (HEA). That disbursement may be made, as provided
in program regulations, either by check or by credit to the student's
account for tuition and other charges then owed, or, with the consent
of the student, for later payment to the student. Until the
disbursement has been made, however, the institution has no
reimbursement claim against the Department. The revised language, which
referred to the disbursements as those that the institution ``will''
make immediately after receiving payment from the Department was
intended to reference situations where the institution had credited
student accounts but not yet paid the student. This revised language
did not accurately describe this procedure. The Secretary therefore
corrects Sec. 668.163(a)(3) to restore a description of reimbursement
requirements as they have been consistently understood and applied by
the Department.
Under those reimbursement procedures, the institution has been
required to disburse fully any amounts for which it seeks
reimbursement, including amounts paid to students directly or credited,
by student consent, to their accounts for later payment. For
reimbursement purposes, however, the Secretary now considers an
institution to have made a disbursement for which a reimbursement claim
is authorized when the institution has credited the student's account
for later payment to the student. The Secretary recognizes the
propriety of this claim because of the nature of the obligation the
institution incurs by making that credit. By crediting the student's
account, the institution incurs a legal obligation to pay the student
the amount credited, to the extent that the student remains eligible.
The institution remains legally obligated to make that payment even if,
by the process of administrative offset, the Department applies funds
otherwise payable to the institution for that approved reimbursement
claim to satisfy a debt owed by the institution.

Waiver of Proposed Rulemaking

In accordance with the Administrative Procedure Act, 5 U.S.C. 553,
it is the practice of the Secretary to offer interested parties the
opportunity to comment on proposed regulations. However, the Secretary
has determined that these amendments to Sec. 668.163(a) to revise and
clarify the procedure for presenting cash requests to the Department
are procedural rules under the exemption from rulemaking requirements
in 5 U.S.C. 553(b)(A) and do not require publication for public
comment.

Executive Order 12866

These regulations have been reviewed in accordance with Executive
Order 12866. Under the terms of the order the Secretary has assessed
the potential costs and benefits of this regulatory action.
The potential costs associated with the proposed regulations are
those determined by the Secretary to be necessary for administering
this program effectively and efficiently.
In assessing the potential costs and benefits--both quantitative
and qualitative--of these regulations, the Secretary has determined
that the benefits of the regulations justify the costs.
The Secretary has also determined that this regulatory action does
not unduly interfere with State, local, and tribal governments in the
exercise of their governmental functions.

Regulatory Flexibility Act Certification

The Secretary certifies that these proposed regulations would not
have a significant economic impact on a substantial number of small
entities. Entities affected by these regulations are institutions of
higher education that participate in the Title IV programs under the
HEA. These regulations, however, would not have a significant impact on
any entities affected. They do not impose excessive regulatory burdens
or require unnecessary Federal supervision. The regulations clarify
existing requirements and relieve unnecessary regulatory burden.

Paperwork Reduction Act of 1995

These proposed regulations have been examined under the Paperwork
Reduction Act of 1995 and have been found to contain no information
collection requirements.

Assessment of Educational Impact

Based on its own review, the Department has determined that the
regulations in this document do not require transmission of information
that is being gathered by or is available from any other agency or
authority of the United States.

[[Page 49043]]

List of Subjects in 34 CFR Part 668

Administrative practice and procedure, Colleges and universities,
Consumer protection, Education, Grant programs--education, Loan
programs--education, Reporting and recordkeeping requirements, Student
aid.

Dated: September 12, 1996.
Richard W. Riley,
Secretary of Education.
(Catalog of Federal Domestic Assistance Number not applicable.)

The Secretary amends Part 668 of Title 34 of the Code of Federal
Regulations as follows:

PART 668--STUDENT ASSISTANCE GENERAL PROVISIONS

1. The authority citation for part 668 continues to read as
follows:

Authority: 20 U.S.C. 1085, 1088, 1091, 1092, 1094, 1099c, and
1141, unless otherwise noted.

2. Section 668.163 is amended by removing paragraph (a)(2)(iii) and
revising paragraph (a)(3) to read as follows:


Sec. 668.163 Requesting funds.

(a) * * *
(3) Reimbursement payment method. Under the reimbursement payment
method--
(i) An institution must first make disbursements to students and
parents for the amount of funds those students and parents are eligible
to receive under the Federal Pell Grant, Direct Loan, and campus-based
programs before the institution may seek reimbursement from the
Secretary for those disbursements. The Secretary considers an
institution to have made a disbursement if the institution has either
credited a student's account or paid a student or parent directly with
its own funds;
(ii) An institution seeks reimbursement by submitting to the
Secretary a request for funds that does not exceed the amount of the
actual disbursements the institution has made to students and parents
included in that request;
(iii) As part of the institution's reimbursement request, the
Secretary requires the institution to--
(A) Identify the students for whom reimbursement is sought; and
(B) Submit to the Secretary or entity approved by the Secretary
documentation that shows that each student and parent included in the
request was eligible to receive and has received the title IV, HEA
program funds for which reimbursement is sought; and
(iv) The Secretary approves the amount of the institution's
reimbursement request for a student or parent and pays the institution
that amount, if the Secretary determines with regard to that student or
parent that the institution--
(A) Accurately determined the student's eligibility for title IV,
HEA program funds;
(B) Accurately determined the amount of title IV, HEA program funds
paid to the student or parent; and
(C) Submitted the documentation required under paragraph
(a)(3)(iii) of this section.
* * * * *
[FR Doc. 96-23853 Filed 9-16-96; 8:45 am]
BILLING CODE 4000-01-P




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Last Modified: 06/24/1998