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Publication Date: June 5, 2001 |
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Page Numbers: 30177-30179
Summary: Ed invites institutions of higher education to propose new ways of administering the student financial assitance programs.
[Federal Register: June 5, 2001 (Volume 66, Number 108)]
[Notices]
[Page 30177-30179]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr05jn01-55]
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DEPARTMENT OF EDUCATION
Federal Student Financial Assistance Programs under Title IV of
the Higher Education Act of 1965, as Amended
AGENCY: Department of Education.
ACTION: Notice inviting proposals for participation in experimental
sites.
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SUMMARY: The Secretary of Education invites institutions of higher
education to propose new ways of administering the student financial
assistance programs authorized by Title IV of the Higher Education Act
of 1965, as amended (HEA). Under section 487A(b) of the HEA, if the
Secretary approves an institution as an experimental site as a part of
this student aid reform initiative, the institution may receive waivers
from specific Title IV statutory or regulatory requirements that would
bias experimental results. The Secretary cannot waive provisions in the
areas of need analysis, award rules, and grant and loan maximum award
amounts. However, the Secretary anticipates approving experiments in a
wide variety of other areas.
Instructions for Submitting a Proposal: Elements to be included in
the proposal are described in this notice. Proposals should be
submitted electronically by electronic mail or in hard copy to the
address below. All proposals should clearly designate a contact person,
and the telephone number and the e-mail address of the contact person.
DATES: Proposals may be submitted in response to this notice at any
time after June 4, 2001.
ADDRESSES: Barbara A. Mroz, U.S. Department of Education, 400 Maryland
Avenue, SW (Room 3925, ROB-3), Washington, DC, 20202-5232.
FOR FURTHER INFORMATION CONTACT: Jacqulyn S. Bannister, U.S. Department
of Education, 400 Maryland Avenue, SW (Room 3925, ROB-3), Washington,
DC, 20202-5232, telephone: (202) 708-7438 or via internet:
Jackie.Bannister@ed.gov.
If you use a telecommunications device for the deaf (TDD), you may
call the Federal Information Relay Service (FIRS) at 1-888-877-8339.
Individuals with disabilities may obtain this document in an
alternative format (e.g. Braille, large print, audiotape, or computer
diskette) by contacting the Alternate Format Center at (202) 260-9895.
SUPPLEMENTARY INFORMATION:
Background
Over the past few years, the Department of Education has undertaken
a series of initiatives to simplify regulations and administrative
processes for the student financial assistance programs. The
Experimental Sites Initiative, authorized by section 487A(b) of the
HEA, is one such initiative. Through this initiative, the Secretary
seeks to improve service to students and free institutions of higher
education from administrative burdens by testing new ways to administer
certain SFA statutory and regulatory requirements.
Initially, Congress gave the Department authority under section
487A(d) of the HEA of 1992 to treat select institutions as experimental
sites. The first group of experiments became effective July 1, 1996.
During the coming months, the Secretary will continue this initiative
to give institutions of higher education flexibility to test different
procedures to carry out the intent of certain SFA statutory and
regulatory requirements. Thus, with this notice, the Secretary invites
proposals to reinvent the administration of student financial
assistance programs authorized by section 487A(b), Regulatory
Improvement and Streamlining Experiments. One purpose of this
initiative, as well as the Department's continuing dialogue with the
higher education community, is to help the Secretary develop a set of
proposals for amendments to the law or regulations pertaining to the
administration of student financial aid programs.
The invitation for proposals in this notice is a part of the
Secretary's continuing effort to reform Title IV program administration
in partnership with the higher education community. The community has
given the Department the benefit of its views in a variety of ways over
the last several years. The community's views have been integrated in
the reforms that the Department has undertaken to date. For example, in
the Higher Education Amendments of 1998, two of the areas of
experimentation--Thirty Day Delay for First Time First Year Borrowers
and Multiple Disbursement for Single Term Loans--were included in
reauthorization for a broader group of institutions. Institutions with
default rates at or below 10% are eligible for the exemption from these
requirements to withhold funds for thirty days for first time, first
year borrowers and/or making multiple disbursements for single term
loans. In addition, the Department has expanded the Federal Work Study
(FWS) payment provisions and the means for certification of FWS time
records. It is the Secretary's hope that in the proposals invited by
this notice, the community will again address important issues of
program administration that remain to be resolved.
Invitation for Proposals
The Secretary invites institutions of higher education that
administer one or more Title IV programs to submit one or more
proposals to participate as experimental sites under section 487A(b) of
the HEA. This section authorizes the Secretary to select institutions
for voluntary participation in experiments to test new ways of
administering the student financial assistance programs. The Secretary
is further authorized to exempt a participating institution from many
Title IV statutory or regulatory requirements while conducting the
experiment, except areas prohibited in section 487A(b)(3)(C).
The Secretary establishes no regulatory requirements for the
proposals invited by this notice. It is the Secretary's hope that this
approach will encourage institutions to develop truly innovative
strategies that relieve unnecessary burden, maintain program
accountability, and provide the Department with data to improve Title
IV program administration. The Secretary will consider the outcome of
these experimental strategies when making changes in Title IV program
regulations or, if appropriate, legislative proposals.
Statutory and Regulatory Provisions That May Not Be Waived
The Secretary may waive any statute or regulatory requirement
except those requirements relating to needs analysis, award rules, and
grant and loan maximum award amounts. Section 487A(b)(3)(C).
Submission of Proposals
An institution that administers a Title IV program, or a group of
these
[[Page 30178]]
institutions (consortium), may submit a proposal in response to this
notice at any time by mailing (including electronic mail) or faxing the
proposal to Barbara A. Mroz or Jacqulyn Bannister at 202/708-9485. Each
proposal to participate in this initiative should include: the name,
address, and web site address, if any, of the institution, or members
of the consortium seeking to participate, the OPE Identification
number, and the name, title, mailing and e-mail addresses, and
telephone number of a contact person for the institution, or
consortium.
The Secretary emphasizes that the Department seeks to approve
proposals for innovative approaches in a variety of different areas
relating to the administration of student financial assistance
programs. The Secretary also encourages institutions to collaborate in
the development of proposals and to submit proposals as a group of
institutions (consortium).
To aid in the Department's review of proposals, the Secretary
suggests the proposal answer the following questions in detail:
What problem experienced by the institution or its
students, or both, does the proposal address?
What is the institution's hypothesis?
What is the institution's experimental design/proposed
solution to that problem?
From which specific statutory or regulatory requirements
does the institution seek relief in order to test its proposed
solution?
What alternative actions does the institution propose to
achieve the underlying purpose of the requirements from which relief is
sought and how will it measure outcomes?
How will the institution evaluate its success?
For what period is the experiment proposed?
Cited below are the areas of experimentation previously approved
and currently being conducted. The higher education community selected
the problems addressed by these experiments because they have been the
subject of considerable commentary. In other words, the participants
identified most of the provisions being modified through these
experiments as common problems. A few of the experiments were
specifically proposed to address a particular problem or a particular
population. In either case, participating institutions have identified
solutions that they believe will better address the needs of their
student population while maintaining the fundamental legislative
intent. A report on this initiative, including a description of each
experiment, can be found on SFA's Information for Financial Aid
Professionals (IFAP) site at: http://www.ifap.ed.gov.
Current Areas of Experimentation
1. Overaward Tolerance.
2. Entrance Loan Counseling.
3. Exit Loan Counseling.
4. Multiple Disbursement for Single Term Loans.
5. Thirty-Day Delay for First Time, First Year Borrowers.
6. Loan Fees in Cost of Attendance.
7. Loan Proration for Graduating Borrowers.
8. Credit Title IV Aid to Institutional Charges.
9. Credit Title IV Aid to Prior Term Charges.
10. Academic Term (Definition).
11. Federal Work Study Time Records.
12. Federal Work Study Payment to Students.
13. Ability to Benefit.
With this notice, the Secretary encourages proposals for new
experiments, in areas other than those listed above. In addition, the
Secretary may develop area(s) of experimentation or modify current
experiments and invite participation to test the impact requirements
have on different types of institutions and/or populations served.
Selection of Participants
In selecting participants to test alternative approaches, the
Secretary may consider the--
1. Department of Education's capacity to oversee and monitor
participation in this initiative.
2. Institution's financial responsibility, administrative
capability, program review findings, audits, etc. as outlined in the
regulations and in the Student Financial Aid Handbook: Institutional
Eligibility and Participation section.
3. Necessity of including a diverse group of participating
institutions vis-a-vis size, mission, and geographic distribution.
As part of the selection process, the Department will screen the
prospective participants to ensure eligibility. A review of the
Department's files on the institution will be conducted to determine if
the institution meets eligibility requirements and has a demonstrated
record of program compliance.
Review Process
The Secretary is prepared to review proposals as soon as they are
received. However, early submission (at least sixty days from the date
of this notice) is encouraged for consideration of proposals for the
2001-2002 award year.
The Secretary will review each proposal submitted in response to
this notice. In reviewing proposals, the Secretary will be guided by
the statutory purpose of section 487A(b), namely, to inform future
policy choices relating to the administration of Title IV programs. The
Secretary may approve a proposal as submitted, reject it, or, if a
proposal is not fully approvable but has merit, work with the
institution to refine it. However, consultation with Congress is a
precondition to granting waivers. After a proposal is approved, the
participating institution's Title IV Program Participation Agreement
(PPA) will be amended to reflect the terms of the experiment, including
the obligations undertaken by the institution, the requirements from
which the institution is relieved, the length of the experiment, and
the right of either the institution or the Department to terminate the
experiment.
Generally, approved experiments will be conducted for five years.
The Secretary may extend this period if continuation is in the interest
of the Title IV programs and additional experimental data is needed. On
the other hand, the Secretary may terminate any experiment if the
experiment is no longer providing useful data or is otherwise no longer
serving the interest of the Title IV programs.
Reporting Requirements
Participating institutions will report annually (a specified date
following each academic year the experiment is in effect) to the
Department on the results of their experiment(s) using performance
measures agreed upon by the institution and the Secretary. Institutions
should gather both qualitative and quantitative information from their
participation and include it in the annual report. The qualitative
information should describe improved service to students, and reduced
institutional burden and costs. The Department also notes that
quantitative measures are essential for reaching informed decisions
relative to change. Thus, the Secretary will work with the
participating institution(s) to develop a standard report format
designed to capture data based information to evaluate the experiment.
Note: The Secretary's decision on institutional proposals will
be final. There is no formal appeal process.
[[Page 30179]]
Electronic Access to This Document
You 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 the following
site: www.ed.gov/legislation/FedRegister.
To use PDF you must have Adobe Acrobat Reader, which is available
free at this site. If you have questions about using PDF, call the U.S.
Government Printing Office (GPO) toll free at 1-888-293-6498; or in the
Washington, DC area at (202) 512-1530.
Note: The official version of this document is the document 1
published in the Federal Register. Free Internet access to the
official edition of the Federal Register and the Code of Federal
Regulations is available on GPO Access at: http://
www.access.gpo.gov/nara/index.html
.
Program Authority: 20 U.S.C. 1094a.
Dated: May 31, 2001.
Greg Woods,
Chief Operating Officer, Student Financial Assistance.
[FR Doc. 01-14059 Filed 6-4-01; 8:45 am]
BILLING CODE 4000-01-P