Proposed Regulatory Language

Committee II -- Program Issues

**Quick Fix:** Yes

**Origin:** ED

**Issue:** Treatment of Branch Campuses

**Regulatory Cite:** §600.8

**Summary of Change:** Clarify that the statutory "two-year rule" only
applies to proprietary institutions of higher education and
postsecondary institutions.

**Change:**

[§ 600.8 Treatment of a branch campus.]{.underline}

A branch campus of an eligible proprietary institution of higher
education or postsecondary vocational institution must be in existence
for at least two years as a branch campus after the branch is certified
as a branch campus before seeking to be designated as a main campus or a
free-standing institution.

Proposed Regulatory Language

**Committee II -- Programs**

**Quick Fix:** Yes

**Origin:** ED Proposed 12/14/2001

**Issue:** Federal Work-Study - Employment Flexibility

> for Proprietary Institutions

**Regulatory Cite:** §§675.2(b) & 675.21(b)

**Summary of Change:** The HEA places limitations on proprietary
institutions with regard to the types of jobs that FWS students may hold
when they are employed by the institution. One of those limitations is
that FWS jobs that are on campus must furnish student services that are
directly related to the student\'s education. These proposed regulatory
changes would broaden and clarify the opportunities for students who
attend proprietary institutions to be employed by the institution itself
under the FWS Program.

[Section 675.2]{.underline} - The proposed change to §675.2 would expand
the definition of \"student services\" by adding further examples,
including job placement and assisting instructors in curriculum-related
activities. The proposed change to §675.2 would also clarify that there
is no expectation that the FWS job involve direct or personal services.
Finally, the proposed change would clarify that some FWS jobs, such as
those in facility maintenance, cleaning, purchasing, and public
relations, are never considered student services.

[Section 675.21]{.underline} - The proposed change to §675.21 would move
the statutory requirement that the job must be directly related to the
student\'s education from the definition of student services in §675.2
to the actual regulatory requirements for employment at a proprietary
institution.

**Changes:**

[**§**675.2 Definitions**.**]{.underline}

\* \* \* \* \*

\(b\) The Secretary defines other terms used in this part as follows:

\* \* \* \* \*

*Student services:* Services that are offered to students
[that]{.underline} may include, but are not limited to, financial aid,
library, peer guidance counseling, [job placement, assisting an
instructor with curriculum-related]{.underline} [activities,
security,]{.underline} and social, health, and tutorial services.
S[tudent services do not have to be direct or involve personal
interaction with students. For purposes of this definition,
the]{.underline} [services of facility maintenance, cleaning,
purchasing, and public relations are never considered student
services.]{.underline}

\* \* \* \* \*

[§675.21 Institutional employment**.**]{.underline}

\* \* \* \* \*

\(b\) A proprietary institution may employ a student to work for the
institution, but only in jobs that \--

\(1\) Are in community services as defined in § 675.2; or

\(2\) Are on campus and that \--

\(i\) Involve the provision of student services as defined in §675.2
[that are directly related to the work-study student\'s training or
education;]{.underline}

\(ii\) To the maximum extent possible, complement and reinforce the
educational program or vocational goals of the student; and

\(iii\) Do not involve the solicitation of potential students to enroll
at the proprietary institution.

\* \* \* \* \*

# Proposed Regulatory Language

# Committee II -- Program Issues

**Quick Fix:** Yes

**Origin:** FED Up #7

**Issue:** Electronic Process -- Administrative

**Regulatory Cite:** §668.165

**Summary of Change:** Whenever an institution credits a student's
account with title IV loan funds, it must notify the student or parent
of his or her right to cancel all or a portion of the loan or loan
disbursement. The notice may be provided in writing or sent
electronically. The proposed change to §668.165(a)(3)(ii) would
eliminate the requirement that an institution must confirm the receipt
of a notice that was sent electronically.

Change:

[§668.165 Notices and authorizations.]{.underline}

\(a\) \* \* \* \* \*

\(3\) The institution must send the notice described in this paragraph
in writing no earlier than 30 days before and no later than 30 days
after crediting the student's account at the institution.