# Presentation: 799925

## Is It “NEG REG” or “REG NEG”?Jeff BakerProgram Development DivisionStudent Financial Assistance

## “NEG REG” or “REG NEG” 

_**AGENDA**_
**THE STATUTES**
**THE LEGISLATIVE PROCESS**
**THE SECRETARY’S RESPONSIBILITIES**
**THE REGULATIONS**
**NEGOTIATED RULEMAKING**
**THE REQUIREMENT**
**THE RESPONSIBILITY**

## “NEG REG” or “REG NEG”

_**AGENDA - continued**_
**NEGOTIATED RULEMAKING -continued**
**THE STEPS**
**THE MEMBERS**
**RULEMAKING STEPS**
**2000 PROPOSED RULES**

**“****NEG REG” or “REG NEG”**** **
_**THE STATUTES**_** **
**THE HIGHER EDUCATION ACT OF 1965, as amended**
**(20 U.S.C. 1001, **_**et.seq**_**.).**
**The Department of Education Organization Act**
**The Privacy Act**
**The Freedom of Information Act**
**Others**

**“****NEG REG” or “REG NEG”**** **
_**HIGHER EDUCATION ACT OF 1965**_
**Title I:****	****Institutional Eligibility**
**Title IV:  Student Assistance**
**Part A:  Grants - Pell,FSEOG,etc.**
**Part B:  FFELP**
**Part C:  FWS**
**Part D: Direct Loans**
**Part E:  Perkins Loans**

**“****NEG REG” or “REG NEG”**** **
_**HIGHER EDUCATION ACT OF 1965**_
**Title IV:  Student Assistance**
**Part F:  Needs Analysis and COA **
**Part G:  General Provisions-Student Eligibility, etc.**
**Part H:  Program Integrity**

##  “NEG REG” or “REG NEG”

_**Legislative Process**_
**Authorizing Committees**
**Request Proposals**
**Hold Hearings**
**Draft Proposed Legislation**
**Debate Proposals**
**Approve Bill for Submission to Respective House**

##  “NEG REG” or “REG NEG”

_**Legislative Process**_
**Full House and Senate**
**Debate Proposed Law**
**Pass Their Version of Bill**
**Appoint Conference Committee Member**
**Conference Committee**
**Reconcile Bills**
**Votes on Final Language**
**Refers Final Language to Houses**

##  “NEG REG” or “REG NEG”

** ****“****NEG REG” or “REG NEG”**

_**Legislative Process**_
**Full House and Senate**
**Debate Proposed Law**
**Floor Amendments**
**Pass Final Legislation**
**Enrolled Bill**
**Sent to President**
**President Signs Into Law**
**Secretary Implements**

##  “NEG REG” or “REG NEG” 

_**Secretary of Education’s Responsibility**_
**Advise Congress**
**Propose Legislation**
**Provide Technical Assistance**
**Assist with Constituent Issues**
**Regulates Where Needed**
**Enforces Law and Regulations**
**Communicates With Interested Parties and the Public**

## “NEG REG” or “REG NEG” 

- 		The HEA			The Regulations

***And Think:***
***We Started With Just ******10****** Commandments***

-   The Regulations

- HEA

**“****NEG REG” or “REG NEG”**** **
_**Code of Federal Regulations**_
_**Chapter 34 (34 CFR)**_
**Part 86 - DRUG-FREE SCHOOLS**
**Part 99 - FAMILY EDUC RIGHTS AND ****	****	****    PRIVACY (FERPA)**
**Part 600 - INSTITUTIONAL ELIG.**
**Part 602 - ACCREDITING AGENCIES**
**Part 603 - STATE AGENCIES**

**“****NEG REG” or “REG NEG”**** **
_**The Regulations - continued**_
**Part 668 - GENERAL PROVISIONS**
**Part 673 - GEN PROVISIONS - ****	****	****	****	****  Campus Based Programs**
**Part 674 - FEDERAL PERKINS LOAN**
**Part 675 - FEDERAL WORK-STUDY**
**Part 676 - FEDERAL SEOG**

**“****NEG REG” or “REG NEG”**** **
_**The Regulations - continued**_
**Part 682 - FFEL**
**Part 685 - FEDERAL DIRECT LOAN **
**Part 690 - FEDERAL PELL GRANT**
**Part 692 - LEAP/Special LEAP (SSIG)**
**Part 693 - GEAR UP (NEISPP)**

##  “NEG REG” or “REG NEG” 

_**Negotiated Rulemaking**_
_**(NEG REG)**_
**Required by the HEA (Sec. 492A)**
**All parts of Title IV -- All the time**
**Goal: To develop Notices of Proposed   ****	****Rulemaking (NPRM) that reflect a final ****	****consensus of the negotiating committee**
**Consensus: There must be no dissent by ****	****any member for the committee to have ****	****reached consensus.**

##  “NEG REG” or “REG NEG” 

_**2000 Negotiated Rulemaking**_
**Secretary Delegated, Under the Deputy ****	****Secretary, Responsibility to:**
**Maureen McLaughlin, Deputy Assistant Secretary, OPE**
**Jack Kristy, Acting Deputy General Counsel**
**Started February 3, 2000**
**Two Teams**
**I. ****	****Loan Issues **
**II.  Other Issues**

##  “NEG REG” or “REG NEG” 

_**Neg Reg Process**_
**Secretary Holds Meetings to Consider Proposed Topics**
**Secretary Proposes Topics**
**Meetings with Interested Parties to Discuss Neg Reg Process**
**Solicit Nominations for Neg Reg Non-Federal Members**
**Select Non-Federal Members**

##  “NEG REG” or “REG NEG” 

**Non-Federal Members**
**American Association of Collegiate Registrars and Admissions Officers**
**American Association of Cosmetology Schools**
**American Association of State Colleges and Universities **
**American Association of Community Colleges**
**American Council on Education**
**Association of Jesuit Colleges and Universities**
**Career College Association**

##  “NEG REG” or “REG NEG” 

**Non-Federal Members**
**Coalition of Higher Education Assistance Organizations**
**Coalition of Publicly Traded Educational Institutions**
**Consumer Bankers Association**
**Education Finance Council**
**Education and Loan Management Resources**
**Legal Services**
**NAFSA: Association of International Educators**

##  “NEG REG” or “REG NEG” 

**Non-Federal Members**
**National Accrediting Commission of Cosmetology Arts and Sciences **
**National Association of College and University Business Officers**
**National Association of Independent Colleges and Universities**
**National Association of Student Financial Aid Administrators**
**National Association for State Student Grant and Aid Programs**

##  “NEG REG” or “REG NEG” 

**Non-Federal Members**
**National Association of State Universities and Land-Grant Colleges**
**National Association of Student Loan Administrators**
**National Council of Higher Education Loan Programs**
**National Direct Student Loan Coalition**
**Sallie Mae, Inc. **
**Student Loan Servicing Alliance**

##  “NEG REG” or “REG NEG” 

**Non-Federal Members**
**The College Fund/United Negro College Fund**
**United States Student Association**
**US Public Interest Research Group**
**University Continuing Education Association.**

##  “NEG REG” or “REG NEG” 

_**Neg Reg Process - continued**_
** ****Committee Approves Protocols**
**Committee Finalizes Agenda Topics**
**ED Submits Thoughts and Ideas**
**Committee Reacts**
**Negotiations Begin**
**ED Provides Draft Regulatory Language**
**Negotiations Continue**

## “NEG REG” or “REG NEG” 

_**Neg Reg Process - continued**_
** ****Negotiations Continue**
** ****Negotiations Continue**
**Consensus Reached**
**NPRM Regulatory Language Published as Agreed**
**No Consensus Reached**
** ****Secretary Publishes without regard    ****	****to negotiations**

## “NEG REG” or “REG NEG”

_**Rulemaking Steps**_
** ****ED Writes Preambles**
** ****Internal Review of NPRM Package**
**Deputy Secretary**
**OMB**
**Budget Implications**
**OPE Approval**
**SFA Approval**
**Neg Reg Committee Reviews Preambles**

##  “NEG REG” or “REG NEG”

_**Rulemaking Steps - continued**_
**ED May Make Changes to Preambles**** **
**Secretary’s Approval**** **
**NPRM Published**
**Submitted to the Federal Register**
**Posted to IFAP**
**30- 90 Day Comment Period ED**
**ED Reviews Comments**
**ED Decides on Changes**

##  “NEG REG” or “REG NEG”

_**Rulemaking Steps - continued**_
**ED Writes Analysis of Comments and ****	****	****Changes, if any**
**Internal Approval (Same as for NPRM)**
**Submits for Publication in the Federal ****	****Register - Publish by November 1**
**Final Rule Effective Usually Following  ****	****July 1.**

##  “NEG REG” or “REG NEG”

_**Proposed Rules (NPRMs)**_
**To Be Published in July --**
** ****Cohort Default Rates**
** ****Federal Perkins Loans**
** ****Guaranty Agency Due Diligence, etc.**
** ****Teacher Loan Forgiveness (FFEL/DL)**
** ****Death and Disability Discharges**
** ****General Provisions Issues**
** ****Special LEAP (SLEAP)**
** ****Cash Management**

## NEG REG” or “REG NEG 

_**FFEL/DL Cohort Default Rates**_
**Restructure and revise cohort default rate provisions for clarity and consistency.**
**Change of ownership - Branches, locations, mergers, acquisitions, etc.**
**Revised Treatment when rate > 40%**
**Definition of Default for ICR Payments**

## NEG REG” or “REG NEG 

_**Federal Perkins Loan**_
**Clarification of Collection Rate for ****	****	****	**** Rehabilitated Loans**
**Bankruptcy Filing for State Schools**
**Easier Assignment of Defaulted ****	****	****	**** Loans**

## “NEG REG” or “REG NEG” 

** **_**Guaranty Agency Due Diligence, etc.**_
**Streamlined Post-Default Due Diligence**
**Closed School Discharges**
**Retroactive Deferments **
**Low Income Deferment Based on AGI**
**	****or Monthly Income**

## “NEG REG” or “REG NEG” 

_**Teacher Loan Forgiveness**_
**Amount:  $5,000 (FFEL and DL)**
**Borrower Eligibility**
**New Borrower as of 10/1/98**
**Five Years Teaching on Low-Income    ****	****School**
**At Least One Year After 1997-98**

## “NEG REG” or “REG NEG” 

- 	_**Death & Disability Discharges**_
**OIG Report**
**All Three Title IV Loan Programs**
**Establish stronger evidentiary requirements for death discharges.**
**Modify Definition of Disability**
**Remove Return to School Condition**
**SSA Determination ???**

## “NEG REG” or “REG NEG” 

- 	_**Death & Disability Discharges**_
**Establish Conditional Discharge **
**Suspension of Collections**
**Three to Five Years**
**No Interest Accrual**
**Earnings Thresholds**
**Income**
**Months**
**Loan Discharged or Activated**

## “NEG REG” or “REG NEG” 

_**General Provisions**_
**Change of Ownership**
**Publicly traded corporation.**
**Public institutions.**
**Application procedures**
**Branches/Additional Locations**
** ****Elimination of Paper Financial Aid ****	****	****	****Transcripts (FATs)**

## “NEG REG” or “REG NEG” 

_**Special LEAP (SLEAP)**_
**Implements New State Run Program**
**State Matching Requirements**
**State MOE Requirements**
**Calculation of State Award**
**Define Eligible Students**

## “NEG REG” or “REG NEG” 

_**Special LEAP (SLEAP)**_
_**Permissible Activities**_
**Increase grants awarded in LEAP**
**Transition programs to postsecondary**
**Grants for students who wish to enter ****	****	****careers in information technology or ****	****	****other fields of study determined by the ****	****State to be critical to the State’s ****	****	****workforce needs.**
**Community service work-study activities**

## “NEG REG” or “REG NEG” 

_**Special LEAP (SLEAP)**_
_**Permissible Activities**_
**Scholarship program for students who ****	****	****wish to enter teaching.**
**Scholarship program for students who ****	****	****wish to earn a degree in mathematics, ****	****	****computer science, or engineering.**
**Early intervention programs, mentoring ****	****	****programs, and career education programs.**
**Merit or academic scholarships to eligible ****	****students.**

## NEG REG” or “REG NEG 

**Cash Management -FFEL Delivery**
**Modify Rule for Re-Checking Eligibility**
**Similar to Secretary’s Just-in-Time**
**FFELP**** “Hold and Release” Process**

## Questions

**?**