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DRAFT for discussion at 2nd session 

3/25/2009 

Issue 4 

Proposed Regulatory Language 

 Team II – School-based Loan Issues 

Origin: HEOA section 493 

 

Issue: PPA: Private Education Loan 

Certification 

Statutory cites: HEA section 487(a)(28) 

Regulatory cites: New §668.14(b)(29) 

DCL GEN-08-12 cite: Page 71 

Summary of issue: The HEOA adds a new requirement to the 

Program Participation Agreement (PPA) that an institution 

participating in any Title IV program must, upon the 

request of an applicant for a private education loan, 

provide the applicant the self-certification form for 

private education loans required under section 128(e)(3) of 

the Truth in Lending Act (TILA) and the information needed 

to complete the form, specified in HEA section 155(a)(4), 

to the extent the institution has that information. The 

information to be supplied by the institution (if 

available) to the applicant includes: 

 The applicant’s cost of attendance (COA) at the 

institution; 
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DRAFT for discussion at 2nd session 

3/25/2009 

 The applicant’s expected family contribution (EFC), if 

the applicant completed the Free Application for Federal 

Student Aid (FAFSA); 

 The applicant’s estimated financial assistance (EFA);

 The difference between the COA and the EFA; and 

 The sum of the EFC and the difference between the COA and 

EFA. 

Regulatory language: 

§ 668.14 Program participation agreement. 

(a)(1) An institution may participate in any Title IV, 

HEA program, other than the LEAP and NEISP GAP programs, 

only if the institution enters into a written program 

participation agreement with the Secretary, on a form 

approved by the Secretary. A program participation 

agreement conditions the initial and continued 

participation of an eligible institution in any Title IV, 

HEA program upon compliance with the provisions of this 

part, the individual program regulations, and any 

additional conditions specified in the program 

participation agreement that the Secretary requires the 

institution to meet. 

(2) An institution's program participation agreement 

applies to each branch campus and other location of the 

institution that meets the applicable requirements of this 

part unless otherwise specified by the Secretary. 

(b) By entering into a program participation 

agreement, an institution agrees that—

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DRAFT for discussion at 2nd session 

3/25/2009 

(29) (A) It will, upon the request of an applicant 

for a private education loan (as defined in 34 CFR 601.2), 

provide to the applicant the self-certification form 

required under 34 C.F.R §601.10(d) and the information 

required to complete the form, to the extent the 

institution possesses such information, including--

(i) The applicant’s cost of attendance at the 

institution, as determined by the institution under part F 

of title IV of the Act;

(ii) The applicant’s expected family contribution, 

for students who have completed the free application for 

Federal student aid;

 (iii) The applicant’s estimated financial assistance, 

as determined by the institution in accordance with 34 

C.F.R. §682.200;

 (iv) The difference between the amounts under 

paragraphs (b)(29)(A)(i) and (29)(A)(iii) of this section, 

as applicable; and

 (v) The sum of the amounts under paragraphs 

(b)(29)(A)(ii) and (b)(29)(A)(iv) of this section, as 

applicable. 

(B) It will, at the applicant’s request, discuss the 

availability of Federal, State, and institutional student 

financial aid with the applicant.