# Presentation: 731679

## Uncover the Mysteries of the Law and Regulations

Devin Croft
Margaret Day

- Devin Croft
- Margaret Day

## What’s Important?

- How Does a Bill Become
-  a Law?
- Laws VS. Regulations
- What's the Federal Register?
- What's the Blue Book?
- What is meant by “Guidance"?
- Finding Answers Using the Federal Student Aid Handbook and Dear Colleague Letters

**Notes:**
Review each bullet and indicate that the presentation will provide answers or clarification on each.

## Title IV Federal StudentAid Programs

- Pell Grants
- ACG & National SMART Grant
- Campus Based Programs
- FSEOG, FWS, Federal Perkins Loans
-  FFELP/FDLP

**Notes:**
Review the programs and why they are called Title IV....there are in the 4th title of the 15 titles in the HEA.  Think of a title as a section of the law.

## Who’s Responsible?

- Congress
- Creation and modification of programs
- Need analysis formula
- Maximum grant and loan amounts
- Amount of funding

- Executive Branch
- Cash management
- Audit criteria
- Enforcement (L, S & T)
- FAFSA design
- Reporting requirements

**Notes:**
Remind class of their high school civics.   Federal Government is divided into three separate and equal branches.  Executive, Legislative and Judicial.  Today, we are only going to discuss the first two.  The Executive Branch is represented by the President of the US and the various Secretaries and Agency Heads.  For our purposes, the Secretary of Education, Margaret Spellings, and her employees and fiduciaries, are the Executive Branch.  Congress, both the Senate and the House of Representatives, is the Legislative branch of the Federal Government.

Congress MAKES the law.  {Review the sub-bullets on screen}
The Department EXECUTES AND ENFORCES the law.  {Review sub-bullets on screen}

{Explain acronyms on screen}

## Legislation VS. Regulation

- Legislation
- Congress Adopts with presidential signature or after overriding a veto
- Amends the U.S. Code -- the statute (e.g., Higher Education Act)
- Public Laws (108-XX)

**Notes:**

Once congress votes to adopt legislation, it goes to the President for signature.  His signature makes it law.  If the President vetoes the legislation, Congress can make it law by having enough votes to override the veto.

The law is also referred to as the U.S. Code.  Our HEA is in the U.S. Code, Title 20, Chapter 28. 
When the legislation becomes law, it is assigned a public law number by the Office of the Federal Register.  The 108 is the 108th congress.  If  “XX” is the number of the law...if it was “250”, it would be the 250th legislation passed by that congress. 

Review the bullet and sub bullets on slide}

## How the Law is Numbered

- P.L. 105-244 (10/7/98) reauthorized the HEA
- Title IV, Part  G - General Provisions
- Subpart (Arabic numerals when used)
- Section 484 - Student Eligibility
- Subsection (c) - Satisfactory Progress
- Paragraph (1)
- Subparagraph (A)
- Division - lower case Roman - (i), (ii), (iii)
- Clause - upper case Roman - (I), (II), (III)
- Example:  Sec. 484(c)(1)(A)

**Notes:**
Review the slide...
This example is the 244th legislation passed into law by the 105th congress.  It is broken down by title, part, subpart, section, and subsection.  Within each subsection, the paragraphs are broken down further...similar to an outline.

## Legislative Process

*Authorizing* Legislation:
- Introduced by a Representative or Senator to amend or create a federal statute
*Appropriating* Legislation:
- Sets annual funding levels for federal programs

**Notes:**
Most of the time, there are two types of legislation, Authorizing and Appropriating.  Authorizing legislation creates a program or allows an already created program to continue.  Appropriating legislation funds already authorized programs.

Regardless of the type, the process can be simplified like this:

Legislation Assigned to “Committee(s) of Jurisdiction”
Chairman Assigns to Subcommittee 
Hearings Held on Major Legislation
Sub-Committee/Committee decides whether to bring to entire House or Senate
House or Senate votes on legislation.

## Legislative Process Applied to HEA

*Authorizing* Legislation
- Established HEA of 1965 as amended
- Reauthorization changes/renews authorizing legislation approximately every 5 years
*Appropriating* Legislation
- Annually funds programs
- Budget bills

**Notes:**
For purposes of discussing Federal Student Aid, our authorizing legislation is the HEA of 1965.  The HEA is made up of several titles.  Title IV of the HEA discusses and authorizes the Federal Student Aid Programs.  Ever since, we refer to the programs collectively as Title IV programs.

The HEA has a provision in it, like many laws, that forces the Congress to revisit the issue every five years.      We refer to the legislation resulting from this review as “Reauthorization”.  We will talk more about Reauthorization in a moment.

Appropriating legislation is an annual function.   Results in Budget bills.   Funds the various Title IV programs as well as other federal government programs.

## What is Reauthorization?

- Process of “reauthorizing” or
- continuing the existing law
- Reauthorization of the Higher Education Act of 1965, as amended
- Originally enacted as part of President Johnson’s “Great Society” programs
- Authorizations “sunset” and must be renewed
- Authorizes all federal Higher Education Programs

**Notes:**
Reauthorization is the process by which Congress prescribes changes, additions, and deletions to the Higher Education Act. The reauthorization review is performed by the House Committee on Education and Workforce, sub-committee on Education Reform and the Senate Committee on Health, Education, Labor and Pension, subcommittee on Education. Each house holds its own hearings, uses its own information, and drafts its own bill.
After the draft bill is passed in each house, a conference committee is formed, composed of both Representatives and Senators, to work out the differences between the House and Senate versions of the bill and to reach a compromise acceptable to all.
Reauthorization should occur every five years, though our last one was in 1998.

## Why Reauthorization?

- Reauthorization provides the opportunity for Congressional review
- Public hearings
- More time to consider ideas
- Ability to review fundamental issues
- Access
- Choice
- Eligibility
- Subsidies
- Accountability

**Notes:**
Through reauthorization, legislation is developed that adjusts the current programs to meet the changing needs in education in our society.  The list shows issues to be considered. 

## Hand-off to the Executive Branch

- Presidential signature required on all changes to the law
- Date of enactment is the date that the President signs a bill into law

**Notes:**
You will recall we discussed the three separate and equal branches of government.......

We have reached the point where the legislative branch is handing over its work to the executive branch, represented by the President of the US.

Review slide.

## Hand-off to the Executive Branch

- Executive Branch must execute and enforce Laws
- Statutory language may be vague
- Congress may direct that regulations be written or may prohibit regulation
- Regulations are the primary vehicles that executive branch agencies use to interpret and enforce statutes
- Sub-Regulatory guidance includes Dear Colleague Letters, forms, Audit Guide

**Notes:**
The President has chosen an individual to overseeeach executive department of the federal government.  For the Department of Education, it is the Secretary of Education, Margaret Spellings.  Her role is the implement the legislation created by Congress and signed by the President.

Review slide.

## Legislation VS. Regulation

- Regulations
- Promulgated by appropriate federal agency
- U.S. Department of Education
- Reviewed by Office of Management and Budget (OMB)
- Interprets and adds detail to statute
- Amends Code of Federal Regulations (C.F.R.)

**Notes:**
Legislation vs Regulation.  I said earlier that legislation drives the need for regulation.  Once the Congress has completed its work, and the president has signed the bill into law, the appropriate federal agency, in our case, ED, develops and publishes regulations.  These are guidance to implement provisions of the law.

Review slide  

The Code of Federal Regulations or CFR is where the regulations are compiled and we will talk more about the CFR in a moment.

Now let’s talk about the process by which regulations are developed and published...................

## Regulatory Process

- Negotiated Rulemaking (Neg-Reg)
- Mandated by the Higher Education Act (HEA)
- All rules implementing changes to the Higher Education Act, and revisions to regulations, are subject to this process
- Secretary consults with the “community”

**Notes:**
The law requires that ED seek public comment on proposed regulations.  Committees representing various parts of the community (schools, students, lenders/ga’s, etc.)are formed to discuss or ”negotiate” the proposed rules.

## Regulatory Process

- New/amended regulations initially published in the Federal Register
- Notice of Proposed Rulemaking (NPRM)
- Comment periods 30, 45, 60, or 120 days
- Final Rules
- Effective date 45-days following publication or
- Later date published in Federal Register
- Notices
- Regulations compiled once a year

**Notes:**
New regulations may be issued as proposed regulations, final regulations, or notices and are published in a government publication called the Federal Register.  Regulations are usually published first as a Notice of Proposed Rulemaking (NPRM).  An NPRM includes background information, proposed changes to current regulations, and the address and closing (due) date for receiving comments from the public.  After the Department receives comments on an NPRM from the public, it reviews the comments, incorporates any needed changes, and publishes final regulations.
Final regulations supplement, amend, or replace earlier final regulations.  Regulations published as notices generally concern procedural matters that do not require a review of comment period.  The law requires some notices to be published annually, for example, notices of program deadline dates and notices to update need-analysis charts.
Generally, regulations become effective following a 45-day period prescribed by law that follows immediately after the date of publication in the Federal Register.  However, if the Congress adjourns during the 45-day period, some provisions of the regulations may have a later effective date.  In addition, some portions of the regulation that include record keeping requirements may have other effective dates that depend on the approval of these information collection requirements by the Office of Management and Budget.  The later effective dates will be published in the Federal Register when they are known.

## Regulatory Process - Master Calendar

- Rules must be published by the preceding November 1 to be effective for an academic year
- Example: rules published by November 1, 2007 will be effective on July 1, 2008 for 2008-2009 award year
- Secretary may permit earlier implementation

**Notes:**
Explain slide.

## Title IV Regulations -Federal Register

- The official daily compilation of federal regulations and notices
- prepared by the NARA; published by GPO
- Available on online or in hardcopy

**Notes:**
The Federal Register provides a uniform system for publishing federal documents.  It is prepared by the National Archives and Records Administration’s  (NARA) Office of the Federal Register.  It is published by the U.S. Government Printing Office.

## Title IV Regulations - Code of Federal Regulations

- Codification of the regulations
- Divided into 50 titles; Title 34 governs federal financial aid
- Updated once each calendar year
- Available online or in hardcopy

**Notes:**
The basic component of the system is the Code of Federal Regulations (CFR).  The CFR is divided into 50 titles according to subject matter.  Each title is further divided into parts.  Federal regulations relating to education are designated as “Title 34 of the Code of Federal Regulations” or “34 CFR”. 
Sometimes there are also appendices at the end.

The CFR is updated daily online and once a year on paper.  It can be accessed via IFAP or a hard-copy may be purchased from the U.S. Government Printing Office.

## How Regulations Are Numbered

- Title - 34
- Part – numbers 600 thru 694
- Subpart – numbers following the decimal point
- Section – small letter, e.g. (a)
- Explanatory Subsections
- (1)(i)(A)
- Example: the Standards of Administrative Capability Regulatory Cite is  34 CFR 668.16

**Notes:**
Explain slide.

## Guidance vs. Laws and/or Regulations

- Guidance is information that provides direction or advice as to a decision or course of action
- Guidance, as related to the Title IV programs, is
- Issued by ED
- Helps financial aid administrators interpret laws/regs
- Administered in several different forms

**Notes:**
Explain slide...
Our policy office interprets both the law and the regulations and issues guidance...how ED believes both should be implemented ...how the programs are to be administered.

## Title IV Guidance - FSA Handbook

- Primary resource for financial aid administrators
- Provides “plain language” explanation of laws and regulations
- Published annually
- Available online or in hardcopy

**Notes:**
Explain the handbook...

## Title IV Guidance - The Blue Book

- Primary resource for school Business Office
- Available online or in hardcopy

**Notes:**
Explain the Blue Book

Only revised every few years.  The current one was published in October 2005.

## Title IV Guidance -Dear Colleague Letters

- Issued by ED to provide additional policy/guidance
- Q&A’s
- Technical information
- Introduce new rules
- Explain rules in existence
- Explain policies

**Notes:**
Explain DCL’s and importance of reading them as they are posted to IFAP.  Explain that we do not provide paper copies, but schools are still held responsible for the guidance.

## Dear Colleague Letter Numbering

- ANN	Training Announcements
- CB	Campus-based Programs
- FP	Financial Partners (FFEL 			lenders & guarantee agencies)
- GEN	General Distribution
- P	Pell Grant Program
- DLB	Direct Loan Bulletins

**Notes:**
Explain slide.

## Dear Colleague Letter Numbering

- GEN-07-02
- GEN = type of letter
- 07 = calendar year
- 02 = number of letter in that calendar year
- Second GEN letter in 2007

**Notes:**
GEN is general distribution  --- for schools in any Title IV program
07 is the calendar year of 2007
02 is the second GEN letter in 2007

## Title IV Guidance -Electronic Announcements

- Less formal memos/letters from Senior FSA staff to assist schools
- Provide updates, guidance, reminders, notices
-  Delivered electronically
- Sent to SAIG mailbox
- Listed on IFAP by date

**Notes:**
Explain slide

## Where can I find this information?

- IFAP –	ifap.ed.gov
- FAP Portal – fsa4schools.ed.gov

## Slide 28

**Notes:**
Shows IFAP and purple blocks show DCL and Electronic Announcement area, Law and regs area,  Blue Book, and FSA Handbook.

YOU MUST CLICK THE MOUSE FOR THE PURPLE BLOCKS TO APPEAR.

## Slide 29

**Notes:**
FSA Portal....shows where to order publications.
www.fsapubs.org is direct to ordering site.

## What’s Involved? - Review

- The Law – Higher Education Act of 1965, as amended
- Created by Congress
- Regulations – implement the Law
- Created by ED through negotiated rulemaking process
- Dear Colleague Letters
- Issued by ED to provide additional policy/guidance
- Electronic Announcements
- Less formal information from ED to assist schools

**Notes:**
Summary...

## Legislation and Regulation

**Now You’re An Expert!!!**

## Contacts

**Margaret Day**
**Phone: (303) 844-3677 ext. 127 **
**Email: margaret.day@ed.gov**

- We appreciate your feedback and comments.
- We can be reached at:

**Devin Croft**
**   ****Phone: (303) 844-3677 ext. 125 **
**   ****Email: devin.croft@ed.gov**

## Please provide any comments regarding this training or the trainers to:

Jo Ann Borel
Title IV Training Supervisor
joann.borel@ed.gov
202-377-3930

- Jo Ann Borel
- Title IV Training Supervisor
- joann.borel@ed.gov
- 202-377-3930