Notices of Proposed Rulemaking (NPRMs)
What Are NPRMs?
A Notice of Proposed Rulemaking (NPRM), is comprised of
draft policy guidelines or proposed regulations that have
been developed by the Department of Education. NPRMs are
published in the Federal Register to provide the general
public with an opportunity to comment on the content or
impact of the proposed regulations and policies. NPRMs are
published before regulations are issued in final form as
Final Regulations. The length of time between the publication
of an NPRM and the publication of a final rule varies, but
is rarely less than 45 days.
Why Should I Respond to an NPRM?
The regulatory function of the Department of Education has
a significant impact on your students and school. Accordingly,
it is critical to advise officials at the Department of
Education on the potential impact of their policy making
activities. Providing comments to the Department of Education
on NPRMs is one way to guarantee that your views are known.
How Do I Respond to an NPRM?
Write to the agency official listed in the NPRM on your
personal or business letterhead and sign your name above
your typed signature.
The following are examples of how to respond to an NPRM:
Mr. Kenneth Smith
U.S. Department of Education
P.O. Box 23272
Washington, D.C. 20026-3272
Dear Mr. Smith:
On behalf of the more than 3,200 institutional members
of the National Association of Student Financial Aid Administrators
(NASFAA), I am writing to provide comments to the Department
of Education Notice of Proposed Rulemaking (NPRM) printed
in the September 13, 1996 Federal Register affecting the
Student Assistance General provisions regulations.
NASFAA strongly supports efforts by the Secretary and
the Congress to reduce the record retention requirements
for schools. While this NPRM (which implements the record
retention provision contained in P.L. 103-382) goes a
long way toward easing the record retention burdens on
schools, we believe that further reductions can be achieved
by eliminating duplicative information storage by various
Title IV program participants.
A truly meaningful reduction in burden would result not
only in the reduction of retention time limits, but in
the number of records that institutions are required to
retain in general. As such, we encourage the Secretary
to undertake a review of the Department's numerous data
bases, such as the National Student Loan Data System,
and to identify those data elements which no longer need
to be maintained by institutions. In addition, as the
Department develops its plans to implement Project EASI
and/or other system improvements, we encourage the Secretary
to provide the structure for transferring most of the
current record keeping responsibilities from schools to
the Department.
Our specific comments related to this NPRM are as follows:
Section 668.24 (d) General
NASFAA supports the comments provided on this section
by the American Association of Collegiate Registrars and
Admissions Officers.
Section 668.24 (e) Record retention
This NPRM would require an institution to keep records
related to its administration of the campus-based and
Federal Pell Grant program for three years following the
end of the award year for which that aid was awarded and
disbursed. According to these proposed rules, if a student
receives a Federal Pell Grant for award year 1996-97,
including a summer cross-over period that ends August
15, 1997, the institution could purge its records regarding
that student's awards and disbursements of the Federal
Pell Grant attributable to his or her 1996-97 (including
the summer term) entitlement on July 1, 2000.
Now suppose the same student received a Federal Stafford
Loan for the summer 1997 cross-over term, which was considered
part of the Scheduled Academic Year running summer 1997
through spring 1998. The student's 1997-98 EFC was used
to determine need for the loan but the Federal Pell Grant
that was part of his or her 1996-97 entitlement was included
in the estimated financial assistance for the summer Federal
Stafford Loan. The student graduates in May 2000.
An institution would have to keep records "relating
to a student or parent borrower's eligibility and participation
in the FFEL or Direct Loan Program" for three years
after the end of the award year in which the student last
attended the institution. Two central factors of a student's
eligibility for a Direct or Federal Stafford Loan are
EFC and estimated financial assistance. Since the 1997-98
EFC was used, would the record documenting that EFC (i.e.,
the SAR or ISIR) have to be retained until three years
after the end of the student's last award year attended.
i.e., until July 1, 2003? Likewise, would records pertaining
to that student's Federal Pell Grant (the 1996-97 SAR
or ISIR) used as estimated financial assistance for the
loan in question have to be maintained until July 1, 2003?
In situations like the one
described above, NASFAA strongly encourages the Secretary
to require retention of only the data amounts that the institution
used to process the loan application (that is, just the
amounts of the EFC and Pell Grant without the underlying
documentation (SARs or ISIRs).
We thank you for the opportunity to comment on this NPRM.
Sincerely,
Dallas Martin
President
NASFAA
Fitzhugh Mullen, M.D. Director
Bureau of Health Professions
Health Resources and Services Administration
Room 8-05, Parklawn Building
5600 Fishers Lane
Rockville, MD 20857
Dear Dr. Mullen:
On behalf of the more than 3,200 members of the National
Association of Student Financial Aid Administrators (NASFAA),
I am writing to provide comments on the November 16, 1994,
Health Education Assistance Loan Program notice of Proposed
Rulemaking (NPRM).
NASFAA supports the comments provided on this NPRM by
the American Association of Medical Colleges. As such,
our comments are limited to those few issues listed below:
SECTION 60.2
Heal Default Rate
In section 60.2, the Department
proposes that HEAL default rates be calculated by September
30 each year. The September 30 rates, which represent
a change from the January 1 date used in 1998, will be
used to determine risk-based insurance premiums and program
eligibility for loans made or purchased on or after July
1, of the following year. NASFAA supports the new, earlier
date and believes it will allow additional time for schools,
lenders or holders to consider whether to exercise the
option of repaying some of their defaulted loans, thus
reducing their default rate.
We note that the language
in section 60.14(b)(3)(ii), regarding medium-risk lenders,
"includes lenders for which the volume of HEAL loans
made for purposes of the default rate calculation is 50
or less." This statement appears to conflict with
the statement in 60.14(b)(3)(i) which already defines
this category of lenders as "low-risk." We suggest
that this be clarified in the final rule.
The Supplementary Information section of the regulations
requests comment on an alternative approach to determining
the risk-based insurance premium for lenders and holders.
The alternative approach would work as follows: Lenders
and holders with defaulted rates –
> 5% but < 6% pay
a 1% premium;
> 6% but < 7% pay
a 3% premium;
> 7% but < 8% pay
a 5% premium;
> 8% but < 9% pay
a 7% premium;
> 9% but < 19% pay
a 9% premium.
We note that the > and < symbols written above
directly represent what is written in the proposal.
We assume that the Supplementary Information to the
NPRM intended to say "less than or equal to"
rather than "less than." The alternate risk-based
premiums for default rates greater than 10% is not specified
in the NPRM, but it seems to imply that the high-risk
premiums proposed in Sec. 60.14(b)(3)(iii) would apply.
We also believe that this should be clarified in the
final regulation.
We thank you for the opportunity to comment on this NPRM.
Sincerely,
Dallas Martin
President
When is a Final Rule Issued, And
When Does It Become Effective?
Once the Department of Education receives and analyzes comments
on an NPRM, a final rule is constructed. The final rule
will include a summary of industry comments, the Department
of Education's response to those comments and a summary
of any adjustments that will be made to a section of regulatory
test. The final rule is then published in the Federal
Register.
The effective date of a final rule is determined by the
Department of Education and is printed in the text of the
final rule when it is published in the Federal Register.
The length of time between the publication of a final rule
and the date it becomes effective is determined on a case-by-case
basis.
Is It Possible to Change A Final
Rule Once It Has Been Issued?
Comments may be submitted on a final rule. However, it is
unlikely for the Department of Education to make any additional
modifications to a final rule that implements provisions
of law. Changes may be made through additional legislation
passed by Congress. Thus, when the Department of Education
produces a final rule with which you are dissatisfied, the
solution is to work with your Senators and Representatives
so they can pass legislation which will correct the problem.
Where Are Final Rules Listed?
Final rules are codified as a part of the Code of Federal
Regulations (CFR). Federal Student Education Loan Program
regulations are cited as: 34 CFR 682.100 through 682.711.
All Title IV student aid regulations are cited in general
provisions as 34 CFR 668.
Where can I Find Copies of NPRMs
or Final Rules?
NPRMs and Final Rules are published in the Federal
Register. The Federal Register
is printed every Federal working day. The Federal
Register can be obtained directly from the Government
Printing Office for a yearly fee. However, libraries that
are federal depositories will usually have copies of the
Federal Register.
NPRMs and Final Rules are also available through various
sites on the Internet. Some Internet sites will even allow
you to print the regulations in the same format as they
would appear in the Federal Register. However,
some of these Internet sites require a certain type of computer
software that actually formats the page. Two examples of
Internet sites where Federal Registers
are available are: http://www.gpo.ucop.edu/search/fedfld.html
and http://sfa.ope.ed.gov.
How Do I Read and Follow Federal
Regulations?
All of the regulations pertaining to the Title IV programs
are published in Title 34 of the Code of Federal Regulations
(34 CFR). The numerical identifier for all Department of
Education regulations is 6.
Each regulation has a part (i.e. 668), a subpart (A), a
section (668.3) and several levels of explanatory subsections,
as well as an appendix, if necessary.
In addition to the parts of the regulations itself, most
regulations contain a summary of the major provisions of
the regulation, a comments section that often helps in interpreting
the regulatory intent and a reference to the section(s)
of the law which provide the regulatory authority.
Main Document of
the Code of Federal Regulations
Title 34
Part 668
Subpart A
Section 668.3
Explanatory (a)
Subsections
(1)
(i)
(A)
Example of a Regulation Format
At first glance, the format of federal regulations appear
very legalistic and formidable. However, it has a very definite
structure which, when understood, makes a comprehension
of the regulation itself much easier. This structural outline
has been included in the Index of Regulations to provide
a clear, simple explanation of how federal regulations are
organized.
Title: The title of the regulation. Example:
Student Assistance General Provisions.
Agency: The agency issuing the regulation.
Example: The Department of Education.
Action: Identifies the stage in the regulatory
process. Example: Proposed Regulations with comments invited.
Summary: A statement of purpose of this
regulation.
Date (NPRM): Indicates the due date for
comments from the public and the dates of public hearings
if they are to be held.
or
Effective Date (Final Regulation): Identifies
the number of days until it is expected the regulation will
take effect. Unless disapproved by Congress, the effective
date will be 45 days following transmittal to Congress.
This transmittal of regulations usually occurs a few days
prior to publication of the Federal Register.
For Further Information Contact: The individual
and the address to contact for further information.
Supplementary Information: Background or
clarification information which may contain a summary of
major issues of this regulation.
Discussion of Comments (By Regulators):
Special comments regarding a specific regulation.
Part: This is the major numeric identifier
of the regulation. Example: The December 31, 1980,
Student Assistance General Provisions regulations is Part
668 of Title 34 of the Code of Federal Regulations. For
an easy reference, the part will have an outline which identifies
each of the sections and some of the subsections for further
clarification and provides the title of each of them.
Subpart: This is the letter designation
of a subpart such as Subpart A-General.
Section: The numerical designation and
the title of a section, such as S 668.3 Proprietary Institution
of Higher Education. Often contains a general introductory
statement regarding this session.
Explanatory: These are the subsections
which provided detailed information for a Subsections: section.
The designations of the subsections follow this sequence:
(a), (1), (I), (A). When using explanatory subsections,
one must first refer to the section and then to the explanatory
subsection.
Authority: These are references to the
section of the law which provide authority to the specific
section of the regulation. An example of this for S 668.3
is (20 USC 1141 (a), 20 USC 1088). The number 20 is the
volume in the U.S. Code of Education. The numbers 1141 (a)
represent the section of the code.
Appendix: This is the section of the regulation
used to provide additional information such as comments
and responses.
