Source: https://www.federalregister.gov/documents/2011/04/13/2011-8747/program-integrity-issues
Timestamp: 2017-10-22 05:15:37
Document Index: 351225263

Matched Legal Cases: ['§\u2009668', '§\u2009600', '§\u2009600', '§\u2009668', '§\u2009668', '§\u2009668', 'art 668', '§\u2009668', '§\u2009668', '§\u2009668', '§\u2009668', '§\u2009668', '§\u2009668', '§\u2009668', '§\u2009668', '§\u2009668', '§\u2009668']

Federal Register :: Program Integrity Issues
A Rule by the Education Department on 04/13/2011
Effective July 1, 2011, except that the corrections to Sec. 668.58 are effective July 1, 2012.
https://www.federalregister.gov/d/2011-8747 https://www.federalregister.gov/d/2011-8747
On October 29, 2010, the Department of Education published in the Federal Register (75 FR 66832) final regulations for improving integrity in the programs authorized under title IV of the Higher Education Act of 1965, as amended (HEA), by amending the regulations for Institutional Eligibility Under the HEA, the Secretary's Recognition of Accrediting Agencies, the Secretary's Recognition Procedures for State Agencies, the Student Assistance General Provisions, the Federal Family Education Loan (FFEL) Program, the William D. Ford Federal Start Printed Page 20535Direct Loan Program, the Teacher Education Assistance for College and Higher Education (TEACH) Grant Program, the Federal Pell Grant Program, and the Academic Competitiveness Grant (AGC) and National Science and Mathematics Access to Retain Talent Grant (National Smart Grant) Programs. This document makes several corrections to the October 29 final regulations, including in the preamble discussion and the regulatory text.
Effective July 1, 2011, except that the corrections to § 668.58 are effective July 1, 2012.
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Meets State Authorization Requirements *
Educational institution A public, private nonprofit, or for-profit institution established by name by a State through a charter, statute, or other action issued by an appropriate State agency or State entity as an educational institution authorized to operate educational programs beyond secondary education, including programs leading to a degree or certificate. The institution must comply with any applicable State approval or licensure process and be approved or licensed by name, and may be exempted from such requirement based on its accreditation, or being in operation at least 20 years, or use both criteria.
Business A for-profit entity established by the State on the basis of an authorization or license to conduct commerce or provide services. The State must have a State approval or licensure process, and the institution must comply with the State approval or licensure process and be approved or licensed by name.
Charitable organization A nonprofit entity established by the State on the basis of an authorization or license for the public interest or common good. The State must have a State approval or licensure process, and the institution must comply with the State approval or licensure process and be approved or licensed by name.
* Notes:
4. On page 66862, in the first column, under the heading Institutions considered legally authorized under amended § 600.9, the fourth bullet is corrected by adding the words “by name” prior to the period of the first sentence so that it reads: “A nonprofit institution has a State charter as a postsecondary institution by name.”
5. On page 66865, in the second column, the words “by name” are removed from the eighth line in the column so the affected sentence reads: “We have amended proposed § 600.9 to provide that, if an institution is an entity that is established by name as an educational institution by the State and the State further requires compliance with applicable State approval or licensure requirements for the institution to qualify as legally authorized by the State for Federal program purposes, the State may exempt the institution from the State approval or licensure requirements based on the institution's accreditation by one or more accrediting agencies Start Printed Page 20536recognized by the Secretary or based upon the institution being in operation for at least 20 years.”
8. On page 66878, in the first column, in the paragraphs labeled as the Discussion section, in the third paragraph, the sentence is corrected by adding the words “or entity” after the word “person” and deleting the words “who is”, so that the sentence reads: “For this reason, we are making a change to § 668.14(b)(22)(ii) to provide that institutions may make payments, including profit-sharing payments, so long as they are not provided to any person or entity engaged in student recruitment or admission activity or in making decisions regarding the award of title IV, HEA program funds.”
9. On page 66878, in the paragraph labeled Changes that begins at the bottom of the first column, the sentence is corrected by adding the words “or entity” after the word “person” and deleting the words “who is”, so that the sentence reads: “We have revised § 668.14(b)(22)(ii) to clarify that, notwithstanding the ban in § 668.14(b)(22)(i), eligible institutions, organizations that are contractors to eligible institutions, and other entities may make profit-sharing payments, so long as such payments are not provided to any person or entity engaged in student recruitment or admission activity or in making decisions regarding the award of title IV, HEA program funds.”
“Discussion: As noted elsewhere in this preamble, the Department enforces its regulations, including those in subpart F of part 668 within a rule of reasonableness. We strongly believe that the concerns voiced by many commenters have ignored this fact. For this reason, we agree to limit the reach of the ban on making substantial misrepresentations to statements made by any ineligible institution, organization, or person with whom the eligible institution has an agreement to provide educational programs or those that provide marketing, advertising, recruiting, or admissions services. We have done this by narrowing the language in § 668.71(b) and the definition of the term misrepresentation. As a result, statements made by students through social media outlets will generally not be covered by these misrepresentation regulations. Also, statements made by entities that have agreements with the institution to provide services, such as food service, other than educational programs, marketing, advertising, recruiting, or admissions services will generally not be covered by these misrepresentation regulations.”
13. On page 66918, in the first column, the Changes paragraph incorrectly indicated that no changes were made to § 668.71(c). That paragraph is corrected to read as follows:
“Changes: We have revised § 668.71(c) to state that a misleading statement is one that has the tendency or likelihood to deceive or confuse.”
14. On page 66950, in the second column, the introductory text of § 668.8(l)(2) is corrected by adding the word “not” between the words “has” and “identified”.
§ 668.14
15. On page 66950, in the third column, § 668.14(b)(22)(ii)(B) is corrected by:
(A) Adding the words “or entity” after the word “person”.
§ 668.58
16. On page 66957, in the first column, § 668.58(a)(1)(iii) is corrected by removing the word “certified”.
17. On page 66957, in the second column, § 668.58(a)(2)(iii)(B) is corrected by removing the words “Subsidized Stafford Loan or”.
18. On page 66957, in the second column, § 668.58(a)(3)(ii)(C) is corrected by removing the words “Subsidized Stafford Loan or”.