The Secretary amends the Student Assistance General Provisions regulations. These technical amendments are necessary to correct citations and typographical errors, to clarify regulatory language, and to add Office of Management and Budget control numbers

[Federal Register: July 28, 1998 (Volume 63, Number 144)]

[Rules and Regulations]               

[Page 40347-40349]

From the Federal Register Online via GPO Access [wais.access.gpo.gov]

[DOCID:fr28jy98-13]



[[Page 40347]]


_______________________________________________________________________


Part IV






Department of Education






_______________________________________________________________________




34 CFR Part 668




Student Assistance General Provisions; Final Rule



[[Page 40348]]




DEPARTMENT OF EDUCATION


34 CFR Part 668



Student Assistance General Provisions


AGENCY: Department of Education.


ACTION: Final regulations.


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SUMMARY: The Secretary amends the Student Assistance General Provisions 

regulations. These technical amendments are necessary to correct 

citations and typographical errors, to clarify regulatory language, and 

to add Office of Management and Budget control numbers.


EFFECTIVE DATE: These regulations take effect July 1, 1998.


FOR FURTHER INFORMATION CONTACT: John Kolotos or Lloyd Horwich, U.S. 

Department of Education, 7th and D Streets, SW, Regional Office 

Building 3, Room 3045, Washington, DC 20202-5345. Telephone: (202) 708-

8242. 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.

    Individuals with disabilities may obtain this document in an 

alternate format (e.g., Braille, large print, audiotape, or computer 

diskette) on request to the contact person listed in the preceding 

paragraph.


SUPPLEMENTARY INFORMATION: The following regulations are amended to 

correct citations and typographical errors and to clarify regulatory 

language in the text of the Student Assistance General Provisions 

regulations, 34 CFR Part 668.

    Sections 668.172 and 668.173 are amended to clarify regulatory 

language explaining the general standards of financial responsibility. 

Sections 668.174 and 668.175 are amended to correct certain citations 

to other sections.

    Section 668.174 also is amended to correct typographical errors 

concerning the percentage of ownership necessary for a person or entity 

to be considered to exercise substantial control over an institution 

that receives funds under title IV of the Higher Education Act of 1965, 

as amended, or over a third-party servicer to such an institution.

    Final regulations for Secs. 668.171, 668.172, 668.174, and 668.175 

were published on November 25, 1997 (62 FR 62830). Compliance with 

information collection requirements in these sections was subject to 

Office of Management and Budget (OMB) approval and assignment of an OMB 

control number. OMB assigned a control number on January 20, 1998. 

Publication of the control number in these final regulations notifies 

the public that OMB has approved these information collection 

requirements under the Paperwork Reduction Act of 1995.

    Appendix G to Part 668 is amended to clarify the definition of an 

accounting term used in calculating an institution's Primary Reserve 

Ratio.


Waiver of Proposed Rulemaking


    In accordance with the Administrative Procedure Act, 5 U.S.C. 553, 

it is the Secretary's practice to offer interested parties the 

opportunity to comment on proposed regulations. However, the regulatory 

changes in this document are necessary to add OMB control numbers and 

correct minor technical errors and omissions in the Student Assistance 

General Provisions regulations, 34 CFR 668. They do not establish any 

new substantive rules. Therefore, the Secretary has determined that 

publication of a proposed rule is unnecessary and contrary to the 

public interest under 5 U.S.C. 553(b)(B).


Regulatory Flexibility Act Certification


    The Secretary certifies that these final regulations will not have 

significant economic impact on a substantial number of small entities. 

Small entities affected by these regulations are small institutions of 

higher education. These regulations contain technical amendments 

designed to clarify and correct current regulations. The changes will 

not have a significant economic impact on any of the institutions 

affected.


Paperwork Reduction Act of 1995


    These 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.


Electronic Access to This Document


    Anyone may view this document, as well as all other Department of 

Education documents published in the Federal Register, in text or 

portable document format (pdf) on the World Wide Web at either of the 

following sites:


http://ocfo.ed.gov/fedreg.htm

http://www.ed.gpv/news.html


To use the pdf you must have the Adobe Acrobat Reader Program with 

Search, which is available free at either of the previous sites. If you 

have questions about using the pdf, call the U.S. Government Printing 

Office toll free at 1-888-293-6498.


List of Subjects in 34 CFR Part 668


    Administrative practice and procedure, Colleges and universities, 

Student aid, Reporting and recordkeeping requirements.


    Dated: July 20, 1998.

David A. Longanecker,

Assistant Secretary for Postsecondary Education.


    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.



Secs. 668.171, 668.172, 668.174, 668.175  [Amended]


    2. Sections 668.171, 668.172, 668.174, and 668.175 are amended by 

adding the OMB control number following the sections to read as 

follows: ``(Approved by Office of Management and Budget under control 

number 1840-0537)''.



Sec. 668.172  [Amended]


    3. Section 668.172 is amended by removing ``Primary Reserve ratio'' 

and adding in its place ``ratio calculations'' in paragraph (c)(5)(ii).

    4. Section 668.173 is amended by revising paragraph (b) to read as 

follows:



Sec. 668.173  Refund reserve standards.


* * * * *

    (b) Timely refunds. An institution demonstrates that it makes 

required refunds within the time permitted under Sec. 668.22(j)(4) if 

the auditor(s) who conducted the institution's compliance audits for 

the institution's two most recently completed fiscal years, or the 

Secretary or a State or guaranty agency that conducted a review of the 

institution covering those fiscal years--

    (1) Finds in the sample of student records audited or reviewed for 

each of those fiscal years that--

    (i) Less than five percent of the refunds that the institution made 

within that sample were late (for purposes of determining the 

percentage of late refunds under this paragraph, the auditor or 

reviewer must include in the


[[Page 40349]]


sample only those title IV, HEA program recipients who received or 

should have received a refund under Sec. 668.22); or

    (ii) The institution made only one late refund within that sample 

(regardless of the percentage of the refunds within that sample 

represented by the one late refund); and

    (2) Did not note for either of those fiscal years a material 

weakness or a reportable condition in the institution's report on 

internal controls that is related to refunds.

* * * * *



Sec. 668.174  [Amended]


    5. Section 668.174 is amended by removing ``20 percent ownership'' 

and adding in its place ``25 percent ownership'' in paragraphs 

(c)(3)(i), (ii), (iii) and (iv)(B).

    6. Section 668.174 is amended by adding ``a general partner'' after 

``board of directors'' in paragraph (c)(3)(iv) introductory text.



Sec. 668.175  [Amended]


    7. Section 668.175 is amended by removing ``668.174(d)'' and adding 

in its place ``668.174(b)(1) and (c)'' in paragraphs (f)(3)(i) and 

(ii).

    8. Section 668.175 is amended by removing the semicolon and 

inserting ``, except that this requirement does not apply to a public 

institution;'' at the end of paragraph (f)(2)(i).

    9. Section 668.175 is amended by removing ``668.174(d)'' and adding 

in place ``668.174(b)(1) and (c)'' and by removing 

``668.174(c)(2)(ii)'' and adding in its place ``668.174(b)(2)(ii)'' in 

paragraph (g)(1)(i)(A).

    10. Section 668.175 is amended by removing ``668.171(b) and (d)'' 

and adding in its place ``668.171(b) and (d)(1)'' in paragraph 

(g)(1)(ii).


Appendix G--[Amended]


    11. Appendix G, Section 1, to Part 668 is amended by inserting

    ``--(unsecured related-party receiv- ables)'' at the end of the 

definition of Expendable Net Assets.


[FR Doc. 98-20124 Filed 7-27-98; 8:45 am]

BILLING CODE 4000-01-P