# DEPARTMENT OF EDUCATION

The Federal Student Aid Programs under Title IV of the Higher Education
Act of 1965, as Amended

### AGENCY: Department of Education

ACTION: Notice inviting letters of application for participation in the
Quality Assurance Program.

SUMMARY: The Secretary of Education invites institutions of higher
education that may wish to participate in the Quality Assurance Program,
under section 487A(a) of the Higher Education Act of 1965, as amended
(HEA), to submit a letter of application to participate in the program.

DATES: Letters of application may be submitted any time after (INSERT
DATE OF PUBLICATION IN THE FEDERAL REGISTER).

ADDRESSES: Institutions wishing to apply to participate in the Quality
Assurance Program may do so by mailing a letter of application to
Barbara Mroz, Federal Student Aid, U.S. Department of Education, 830
First Street, N.E., Washington, DC 20202-5232 or by submitting a letter
of application electronically to Barbara Mroz at:

<Barbara.Mroz@ed.gov>

FOR FURTHER INFORMATION CONTACT: Sharyn Hutson, Federal Student Aid,
U.S. Department of Education, 830 First Street, N.E., UCP-3 #83G3,
Washington, DC 20202-5232, telephone: (202) 377-4379, or via internet:

#### <Sharyn.Hutson@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, audio tape or computer diskette) on
request by contacting the person listed under [FOR FURTHER INFORMATION
CONTACT]{.underline}.

SUPPLEMENTARY INFORMATION:

##### Background

Institutions of higher education are invited to join the Department in
an effort to simplify regulations and administrative processes for the
Federal Student Aid (FSA) Programs authorized by Title IV of the Higher
Education Act of 1965, as amended (HEA). The vision of the Quality
Assurance Program, with 145 institutions currently participating, is to
provide tools that help all Title IV institutions promote better service
to students, compliance, and continuous improvement in program delivery.
The program encourages participating institutions to develop and
implement their own comprehensive systems to verify student financial
aid application data, and continually assess compliance to Federal
requirements.

The Secretary is authorized to provide participating institutions with
regulatory flexibility for the verification of student data, and to
encourage alternative approaches that improve award accuracy.

The Secretary believes that the process of continuous improvement
fostered by the institutions already participating in the Quality
Assurance Program has enhanced not only the accuracy of student aid
awards and payments, but also the management of student aid offices and
the delivery of services to students.

## Features of the Program

The mission of the Quality Assurance Program is to help schools attain,
sustain, and advance exceptional student aid delivery and service
excellence. For the past 19 years, the program has done that by
providing participating institutions with the flexibility to design an
institutional verification program that more directly focuses on their
own population segments. It has also helped them target areas of
administration that affect award accuracy or that may leave the
institution vulnerable to potential liabilities.

The Quality Assurance Program has given institutions the tools and
techniques to assess, measure, analyze, correct and prevent problems,
and has provided them with data on which to base their decisions for
solving problems and addressing verification issues.

The Secretary encourages institutions participating in the Quality
Assurance Program to evaluate their student aid or verification policies
and procedures and adopt improvements in those procedures. Institutions
measure performance and test the effectiveness of their verification
program by using the Department's ISIR Analysis Tool. The ISIR Analysis
Tool is a web-based software product that provides Financial Aid
Administrators with an in-depth analysis of their applicant population.
It allows them to see not only which FAFSA elements changed when
verified, but also what impact these changes have upon the Expected
Family Contribution (EFC) and aid eligibility. This analysis helps
Financial Aid Administrators develop a targeted institutional
verification program, which ultimately makes the financial aid process
easier for students, while ensuring accountability and integrity.

The Quality Assurance Program also helps institutions make improvements
beyond verification and basic compliance. By using the FSA Assessments,
schools can set goals for continuous improvement in all areas of
financial aid delivery. One key benefit of the program is the
partnership between the Department and the participating institutions.
Both parties become engaged in promoting continuous improvement in the
administration and delivery of the student financial assistance
programs, thereby enhancing service to students.

## Invitation for Applications

The Secretary invites institutions of higher education that administer
one or more Title IV programs to submit a letter of application to
participate in the Quality Assurance Program. Institutions that
currently participate in the program may continue to do so without
submitting a new letter of application. The Secretary will review the
letter of application, which should reflect the institution's commitment
to the goals of the Quality Assurance Program, as determined by the
Secretary. The letter of application should address the following goals
in detail:

-   Attain and sustain compliance and continuous improvement in program
    delivery, and better service to students;

-   Improve the accuracy of institutional verification programs;

-   Increase institutional flexibility in managing student aid funds,
    while maintaining accountability for the proper use of those funds;

-   Encourage the development of innovative management approaches that
    advance quality.

## Review Process

The Department will screen prospective participants to determine if the
institution meets general Title IV eligibility requirements and has a
demonstrated record of program compliance. The Secretary may also
consider the institution's performance with regard to financial
responsibility, administrative capability, program review findings,
audit findings, etc. as outlined in the regulations and in the Federal
Student Aid Handbook.

## Electronic Access to This Document

You may view this document, as well as all other Department of Education
documents published in the [Federal]{.underline} [Register]{.underline},
in text or Adobe Portable Document Format (PDF) on the Internet 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 l-888-293-6498; or in
the Washington, DC area at (202) 512-1530.

Note: the official version of this document is the document published in
the [Federal Register]{.underline}. Free Internet access to the official
edition of the [Federal Register]{.underline} and the Code of Federal
Regulations is available on GPO Access at:

http://www.access.gpo.gov/nara/index.html

Dated:

> \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

#### Teresa Shaw, 

#### [Chief Operating Officer]{.underline}

#### [Federal Student Aid]{.underline}