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DRAFT for discussion at 2nd session 

3/25/2009 

Issue 3 

Proposed Regulatory Language 

 Team II – School-based Loan Issues 

Origin: HEOA section 1011 

 

Issue: Disclosures of Reimbursements for 

Service on Advisory Boards 

Statutory cites: HEA section 485(m)

Regulatory cites: New §668.16(d) 

DCL GEN-08-12 cite: Page 102 

Summary of issue: The HEOA adds a new requirement that an 

institution participating in any Title IV program report 

annually to the Secretary, any reasonable expenses paid or 

provided under section 140(d) of the Truth in Lending Act 

to any employee who is employed in the financial aid 

office, or who otherwise has responsibilities with respect 

to education loans or other financial aid of the 

institution. The report must include: 

• the amount of each specific instance of reasonable 

expenses paid or provided; 

• the name of the financial aid official, other employee, 

or agent to whom the expenses were paid or provided; 

• the dates of the activity for which the expenses were 

paid or provided; and 
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DRAFT for discussion at 2nd session 

3/25/2009 

• a brief description of the activity for which the 

expenses were paid or provided. 

The Secretary must summarize the information received from 

institutions in an annual report to Congress. 

Regulatory language: 

§ 668.16 Standards of administrative capability. 

To begin and to continue to participate in any Title 

IV, HEA program, an institution shall demonstrate to the 

Secretary that the institution is capable of adequately 

administering that program under each of the standards 

established in this section. The Secretary considers an 

institution to have that administrative capability if the 

institution—

(a) Administers the Title IV, HEA programs in 

accordance with all statutory provisions of or applicable 

to Title IV of the HEA, all applicable regulatory 

provisions prescribed under that statutory authority, and 

all applicable special arrangements, agreements, and 

limitations entered into under the authority of statutes 

applicable to Title IV of the HEA; 

* * * * * 

 (d) (1) Establishes and maintains records required 

under this part and the individual Title IV, HEA program 

regulations; and

(2) (A) Reports annually to the Secretary on any 

reasonable reimbursements paid or provided under section 

140(d) of the Truth in Lending Act (15 U.S.C. ________) to 

any employee who is employed in the financial aid office of 
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the institution or who otherwise has responsibilities with 

respect to education loans or other financial aid of the 

institution, including--

 (i) The amount for each specific instance of 

reasonable expenses paid or provided;

 (ii) The name of the financial aid official, other 

employee, or agent to whom the expenses were paid or 

provided;

 (iii) The dates of the activity for which the 

expenses were paid or provided; and

 (iv) A brief description of the activity for which 

the expenses were paid or provided.

 (B) The expenses are considered to be reasonable if 

the expenses—

(i) Are paid in accordance with a State policy; or

(ii) Are paid in accordance with the applicable 

Federal cost principles, if no State policy exists that is 

applicable to the entity.

* * * * * 

 (Approved by the Office of Management and Budget under 

control number 1840–0537) 

(Authority: 20 U.S.C. 1082, 1985, 1094, and 1099c) 

[59 FR 22431, Apr. 29, 1994, as amended at 59 FR 34964, 

July 7, 1994; 59 FR 61180, Nov. 29, 1994; 60 FR 34431, June 

30, 1995; 60 FR 42408, Aug. 15, 1995; 61 FR 60603, Nov. 29, 

1996; 62 FR 27128, May 16, 1997; 63 FR 40624, July 29, 

1998; 64 FR 59038, Nov. 1, 1999; 65 FR 65637, Nov. 1, 2000]