Maintained for Historical Purposes

This resource is being maintained for historical purposes only and is not currently applicable.

The Secretary gives notice to institutions of higher education that, beginning with the 1996-97 award year, the NSLDS may be used by postsecondary educational institutions to meet the regulatory requirements of Section 668.19(a)(1) and (a)(2)(i) for obta

FR part
V
Attachments:
PublicationDate: 9/17/96
FRPart: V
RegPartsAffected:
PageNumbers: 49039-49040
Summary: The Secretary gives notice to institutions of higher education that, beginning with the 1996-97 award year, the NSLDS may be used by postsecondary educational institutions to meet the regulatory requirements of Section 668.19(a)(1) and (a)(2)(i) for obtaining FAT information for most Title IV student aid applicants. Institutions were informed of this availability and the conditions under which the NSLDS may be used for FAT purposes, in a Dear Colleague letter dated July 1996 (GEN-96-13). Further guidance may be given by the Department in subsequent notifications.
CommentDueDate:

  
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[Federal Register: September 17, 1996 (Volume 61, Number 181)]
[Notices]
[Page 49039-49040]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr17se96-152]


[[Page 49039]]


_______________________________________________________________________

Part V





Department of Education





_______________________________________________________________________



Federal Title IV Student Assistance; Notice


[[Page 49040]]



DEPARTMENT OF EDUCATION


Office of Postsecondary Education; Federal Title IV Student
Assistance

AGENCY: Department of Education.

ACTION: Notice of the availability of the National Student Loan Data
System (NSLDS) to be used by postsecondary educational institutions to
meet the regulatory requirements for obtaining financial aid transcript
(FAT) information for purposes of determining student eligibility for
Federal Title IV student assistance.

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

SUMMARY: The Secretary gives notice to institutions of higher education
that, beginning with the 1996-97 award year, the NSLDS may be used by
postsecondary educational institutions to meet the regulatory
requirements of Section 668.19(a)(1) and (a)(2)(i) for obtaining FAT
information for most Title IV student aid applicants. Institutions were
informed of this availability and the conditions under which the NSLDS
may be used for FAT purposes, in a Dear Colleague letter dated July
1996 (GEN-96-13). Further guidance may be given by the Department in
subsequent notifications.

Background

The FAT regulations were developed to make certain that schools had
all of the information necessary to enforce both student eligibility
provisions and to be in compliance with program-specific award maximums
contained in the Higher Education Act (HEA) of 1965, as amended. The
law and supporting regulations provide that, among other eligibility
criteria, an applicant for Federal student aid cannot be in default on
a Title IV student loan or owe an overpayment on Title IV aid.
Additionally, the Pell Grant and loan programs have annual and/or
aggregate award maxima that must be considered when awarding Title IV
aid to a student who transfers into one eligible institution from
another. The Department has determined that obtaining FAT information
from the NSLDS will be more efficient and less burdensome for
institutions of higher education that participate in Title IV programs
than the existing process of requesting the return of paper FATs from
the previously attended institution. In addition, the use of the NSLDS
by institutions provides significant burden reduction to students. The
use of the NSLDS for the purpose of obtaining FAT information will
eliminate paper forms and the need for schools and students to handle
millions of paper FATs each year, significantly reducing delays in
processing and the change of data error.

General Information

Using the information from the NSLDS will allow schools to meet the
regulatory requirements for obtaining FAT information for those Federal
student aid applicants who have previously attended other eligible
postsecondary institutions, with the exception of mid-year transfer
students. Schools may obtain FAT information from the NSLDS through
several methods, including the Student Aid Report (SAR) and the NSLDS
History section of the Institutional Student Information Record (ISIR).
Once a school has obtained historial financial aid information from the
NSLDS, including the information on a student's SAR or in the ISIR, it
will not be required to re-check the NSLDS prior to disbursing Title IV
student assistance. The Question and Answer section of Dear Colleague
letter GEN-96-13 describes in detail how the NSLDS may be used for FAT
purposes. Schools are reminded that the requirement that they respond
to requests for FAT information from other institutions in accordance
with section 668.19(b), (c), and (d) of the regulations remains in
effect.

Applicable Regulations

The following regulations are applicable to these programs:

General Provisions--34 CFR part 668.
Federal Family Educational Loan--34 CFR part 682.
Federal Perkins Loan--34 CFR part 674.
Federal Direct Student Loan--34 CFR part 685.
Federal Pell Grant Program--34 CFR part 690.
Federal Work-Study Program--34 CFR part 675.
Federal Supplemental Educational Opportunity Grant Program--34 CFR
part 676.

FOR FURTHER INFORMATION CONTACT: Greg Gerrans, Program Specialist,
Policy Development Division, Policy, Training and Analysis Service,
Student Financial Assistance Programs, U.S. Department of Education,
600 Independence Avenue, S.W., Washington, DC 20202-5447. Telephone
(202) 708-4607. 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.

Authority: 20 U.S.C. 1091, 1092b, 1094.

Dated: September 10, 1996.

(Catalog of Federal Domestic Assistance Numbers: Federal
Supplemental Educational Opportunity Grant Program, 84.007; Federal
Stafford Loan Program, 84.032; Federal PLUS Loan Program, 84.032;
Federal Work-Study Program, 84.033; Federal Perkins Loan Program,
84.038; Federal Pell Grant Program, 84.063)
David A. Longanecker,
Assistant Secretary for Postsecondary Education.
[FR Doc. 96-23801 Filed 9-16-96; 8:45 am]
BILLING CODE 4000-01-P




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Last Modified: 06/24/1998