Negotiated Rulemaking Committee; Public Hearings, 22467-22469 [2013-08891]
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Dated: April 10, 2013.
Arne Duncan,
Secretary of Education.
[FR Doc. 2013–08847 Filed 4–15–13; 8:45 am]
BILLING CODE 4000–01–P
Privacy Note: The Department’s policy is
to make all comments received from
members of the public available for public
viewing in their entirety on the Federal
eRulemaking Portal at www.regulations.gov.
Therefore, commenters should be careful to
include in their comments only information
that they wish to make publicly available.
DEPARTMENT OF EDUCATION
34 CFR Chapter VI
[Docket ID ED–2013–OPE–0008]
Negotiated Rulemaking Committee;
Public Hearings
mstockstill on DSK4VPTVN1PROD with PROPOSALS
SUMMARY: In May 2012, we announced
our intention to establish a negotiated
rulemaking committee to prepare
proposed regulations for the Federal
Student Aid programs authorized under
title IV of the Higher Education Act of
1965, as amended (HEA) (title IV
Federal Student Aid programs). We now
announce additional topics for
consideration for action by that
committee. We also announce three
public hearings at which interested
parties may comment on the new topics
suggested by the Department and may
suggest additional topics for
consideration for action by the
negotiated rulemaking committee. For
anyone unable to attend a public
hearing, the Department will accept
written comments.
DATES: The dates, times, and locations
of the public hearings are listed under
the SUPPLEMENTARY INFORMATION section
of this notice. We must receive written
comments suggesting issues that should
be considered for action by the
negotiated rulemaking committee on or
before May 30, 2013.
ADDRESSES: Submit your comments
through the Federal eRulemaking Portal
or via postal mail, commercial delivery,
or hand delivery. We will not accept
comments by fax or by email. To ensure
that we do not receive duplicate copies,
please submit your comments only
once. In addition, please include the
16:42 Apr 15, 2013
Jkt 229001
For
information about the public hearings,
go to https://www2.ed.gov/policy/
highered/reg/hearulemaking/2012/
index.html or contact: Wendy Macias,
U.S. Department of Education, 1990 K
Street NW., Room 8017, Washington,
DC 20006. Telephone: (202) 502–7526.
Email: wendy.macias@ed.gov.
For information about negotiated
rulemaking in general, see The
Negotiated Rulemaking Process for Title
IV Regulations, Frequently Asked
Questions at https://www2.ed.gov/policy/
highered/reg/hearulemaking/hea08/
neg-reg-faq.html or contact: Wendy
Macias, U.S. Department of Education,
1990 K Street NW., Room 8017,
Washington, DC 20006. Telephone:
(202) 502–7526. Email:
wendy.macias@ed.gov.
If you use a telecommunications
device for the deaf (TDD) or text
telephone (TTY), call the Federal Relay
Service (FRS), toll free, at 1–800–877–
8339.
Individuals with disabilities can
obtain this document in an accessible
format (e.g., braille, large print,
audiotape, or compact disc) by
contacting Wendy Macias, U.S.
Department of Education, 1990 K Street
NW., Room 8017, Washington, DC
20006. Telephone: (202) 502–7526.
Email: wendy.macias@ed.gov.
SUPPLEMENTARY INFORMATION: On May 1,
2012, we published a notice in the
Federal Register (77 FR 25658)
announcing our intent to establish a
negotiated rulemaking committee under
section 492 of the HEA to develop
proposed regulations designed to
FOR FURTHER INFORMATION CONTACT:
Office of Postsecondary
Education, Department of Education.
ACTION: Intent to establish negotiated
rulemaking committee.
AGENCY:
VerDate Mar<15>2010
Docket ID (listed at the beginning of this
notice) at the top of your comments.
• Federal eRulemaking Portal: Go to
www.regulations.gov to submit your
comments electronically. Information
on using Regulations.gov, including
instructions for accessing agency
documents, submitting comments, and
viewing the docket is available on the
site under ‘‘How to Use
Regulations.gov’’ in the Help section.
• Postal Mail, Commercial Delivery,
or Hand Delivery. If you mail or deliver
your comments about these proposed
regulations, address them to Wendy
Macias, U.S. Department of Education,
1990 K Street NW., Room 8017,
Washington, DC 20006.
PO 00000
Frm 00037
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22467
prevent fraud and otherwise ensure
proper use of title IV Federal Student
Aid program funds, especially within
the context of current technologies. In
particular, we announced our intent to
propose regulations to address the use
of debit cards and other banking
mechanisms for disbursing title IV
Federal Student Aid program funds, and
to improve and streamline the campusbased Federal Student Aid programs.
The notice also announced two public
hearings at which interested parties
could comment on the topics suggested
by the Department and suggest
additional topics for consideration for
action by the negotiated rulemaking
committee. The hearings were held on
May 23, 2012, in Phoenix, Arizona, and
on May 31, 2012, in Washington, DC.
We invited parties to comment and
submit topics for consideration in
writing as well. Transcripts from the
hearings can be found at https://
www2.ed.gov/policy/highered/reg/
hearulemaking/2012/.
Written comments may be viewed
through the Federal eRulemaking Portal
at www.regulations.gov. Instructions for
finding comments are available on the
site under ‘‘How to Use
Regulations.gov’’ in the Help section.
Individuals can enter docket ID ED–
2012–OPE–0008 in the search box to
locate the appropriate docket.
At this time, we are announcing
additional topics for consideration for
action by the negotiated rulemaking
committee. These topics include
regulations that have been the subject of
litigation over the past two years. We
are also announcing three additional
public hearings at which interested
parties may comment on the new topics
suggested by the Department and may
suggest additional topics for
consideration for action by the
negotiating committee. For anyone
unable to attend a public hearing, the
Department will accept written
comments.
We intend to select participants for
the negotiated rulemaking committee
from nominees of the organizations and
groups that represent the interests
significantly affected by the proposed
regulations. To the extent possible, we
will select individual negotiators who
reflect the diversity among program
participants, in accordance with section
492(b)(1) of the HEA.
Regulatory Issues
Over the next several years, the
Department intends to conduct
rulemakings related to the title IV
Federal Student Aid programs. In the
near term, as indicated by the topics
suggested in the May 1, 2012, Federal
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22468
Federal Register / Vol. 78, No. 73 / Tuesday, April 16, 2013 / Proposed Rules
mstockstill on DSK4VPTVN1PROD with PROPOSALS
Register notice and in this notice, we
plan to address program integrity issues
that place title IV Federal Student Aid
program funds at risk. We expect to
announce the formation of additional
negotiated rulemaking committees to
address more directly access to, and the
affordability of, higher education and
possible steps to improve the quality of
higher education in the United States
and to better encourage students to
complete their education. This longterm agenda will take several years to
complete.
The additional topics for
consideration for action by the next
negotiated rulemaking committee are:
cash management of funds provided
under the title IV Federal Student
Financial Aid programs; State
authorization for programs offered
through distance education or
correspondence education; State
authorization for foreign locations of
institutions located in a State; clock-tocredit hour conversion; gainful
employment; changes made by the
Violence Against Women
Reauthorization Act of 2013 (VAWA
Reauthorization), Public Law 113–4, to
the campus safety and security reporting
requirements in the HEA; and the
definition of ‘‘adverse credit’’ for
borrowers in the Federal Direct PLUS
Loan Program.
Cash Management
In response to the May 1, 2012,
Federal Register notice, we heard
testimony and received comments on
disbursing title IV Federal Student Aid
program funds by electronic funds
transfer (EFT) and on whether students
should have a greater role in deciding to
accept debit cards or other banking
services that are provided through an
institutionally-controlled process or
contracted provider. We are interested
in further modifying and updating the
Department’s cash management
regulations in subpart K of 34 CFR part
668. In particular, we are interested in
reducing the time by which an
institution must refund to a student any
title IV Federal Student Aid program
funds that are more than the amount the
institution charges for tuition and fees
and other educationally related costs,
amending the regulations relating to
requirements for student authorizations,
specifying when and how an institution
must disburse title IV Federal Student
Aid program funds, and addressing how
title IV Federal Student Aid program
funds are provided to domestic and
foreign schools and to students. In
addition, we are considering developing
regulations governing how an
institution may use or invest title IV
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16:42 Apr 15, 2013
Jkt 229001
Federal Student Aid program funds held
in its federal or operating accounts or,
if the institution transfers the funds to
a third-party servicer to make
disbursements to students, how those
funds are managed by the provider.
State Authorization for Programs
Offered Through Distance Education or
Correspondence Education
On October 29, 2010, we published
final regulations (75 FR 66831) to clarify
what is required for an institution of
higher education, a proprietary
institution of higher education, and a
postsecondary vocational institution to
be considered legally authorized by a
State to offer an educational program in
that State. The regulations in 34 CFR
600.9(c) specifically provided that, if an
institution is offering postsecondary
education through distance or
correspondence education to students in
a State in which the institution is not
physically located or in which it is
otherwise subject to State jurisdiction as
determined by the State, the institution
would be required to meet any State
requirements for it to legally offer
postsecondary distance or
correspondence education in that State.
Furthermore, under 34 CFR 600.9(c), an
institution was required to document
the State’s approval upon the
Secretary’s request.
On July 12, 2011, in response to a
legal challenge by the Career College
Association, the U.S. District Court for
the District of Columbia vacated the
regulation under 34 CFR 600.9(c) on
procedural grounds. Career College
Ass’n v. Duncan, 796 F. Supp. 2d 108
(D.D.C. 2011). On August 14, 2012, on
appeal, the U.S. Court of Appeals for the
D.C. Circuit affirmed the decision of the
district court and ruled that the
regulation under 34 CFR 600.9(c) is not
a logical outgrowth of the Department’s
proposed rules. It remanded the case to
the district court with instructions to
remand the regulation to the
Department for reconsideration
consistent with the D.C. Circuit’s
opinion. Ass’n of Private Sector Colleges
and Universities v. Duncan, 681 F.3d
427 (D.C. Cir. 2012). In order to address
the procedural concerns identified by
the D.C. Circuit, the Department is now
considering regulatory changes related
to State authorization for programs
offered through distance education or
correspondence education.
State Authorization for Foreign
Locations of Institutions Located in a
State
State authorization requirements for
institutions located in a State (as the
term ‘‘State’’ is defined in 34 CFR 600.2)
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Frm 00038
Fmt 4702
Sfmt 4702
are established in 34 CFR 600.9. The
regulations do not specifically address
the State authorization requirements for
foreign locations (i.e., locations that are
not located in a State) of institutions
located in a State. The Department is
considering amending the State
authorization regulations to establish
authorization requirements for such
foreign locations.
Clock to Credit Hour Conversion
We have heard concerns from schools
and other parties about whether schools
should track the underlying clock hours
in a program after the program is
converted to credit hours, as well as
how the Department should consider
State approval or licensing requirements
in determining that a program is
measured in clock hours for the purpose
of awarding title IV Federal Student Aid
program funds. The clock to credit hour
conversion regulations are in 34 CFR
668.8(k) and (l). We are requesting
public input on whether these issues
should be addressed by the negotiated
rulemaking committee.
Gainful Employment
On June 30, 2012, in response to a
legal challenge by the Association of
Private Sector Colleges and Universities,
the U.S. District Court for the District of
Columbia invalidated the repayment
rate threshold in the gainful
employment regulations, and set aside
the requirement for institutions to report
gainful employment program
information to the Department. Ass’n of
Private Colleges and Universities v.
Duncan (D.D.C. 2012). That litigation is
still ongoing; however, the Department
is interested in public input in this area.
The Department is interested in
potential approaches to defining what it
means for a program to prepare students
for gainful employment in a recognized
occupation. This includes thoughts on
the best measures (such as debt-toearnings ratios or repayment rates) and
their thresholds for defining or
evaluating gainful employment
programs, how best to construct an
accountability system that accurately
distinguishes between successful and
unsuccessful programs, and how to
address the establishment of new
programs, as well as related ideas. In
considering these questions, the
Department recommends taking into
account the information included in the
program-level data we gathered and
released as Information Rates on June
26, 2012, available at https://
studentaid.ed.gov/about/data-center/
school/ge.
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Federal Register / Vol. 78, No. 73 / Tuesday, April 16, 2013 / Proposed Rules
Campus Safety and Security Reporting
The VAWA Reauthorization, enacted
March 7, 2013, amended section 485(f)
of the HEA, known as the Jeanne Clery
Disclosure of Campus Security Policy
and Campus Crime Statistics Act (the
Clery Act). These amendments address
the high rates of dating violence and
sexual assault on college campuses by
requiring institutions to provide
information to students about domestic
violence, dating violence, sexual
assault, and stalking, and to inform
students and staff about the number of
these crimes that occur on and near
campus. Institutions are also required to
create and disseminate policies
describing the protections, resources,
and services available to victims to help
them safely continue their education.
We intend to develop proposed
regulations to implement these changes.
mstockstill on DSK4VPTVN1PROD with PROPOSALS
Definition of ‘‘Adverse Credit’’ for the
Direct PLUS Loan Program
The PLUS Loan Program provides
loans up to the amount of the cost of
attendance to graduate students and
parents. In light of the unique nature of
the PLUS Loan Program, Congress
limited eligibility to graduate or
professional students or parents who do
not have an adverse credit history, as
determined pursuant to regulations
promulgated by the Secretary. Under
regulations published by the
Department in 1994, a PLUS loan
applicant is considered to have an
‘‘adverse credit history’’ if the applicant
(1) is 90 or more days delinquent on the
repayment of any debt or (2) has been
the subject of a default determination,
bankruptcy discharge, foreclosure,
repossession, tax lien, wage
garnishment, or write-off of a title IV
debt during the five years preceding the
date of the credit report (34 CFR
685.200(c)(1)(vii)(B)). Since 1994, much
has changed in consumer credit markets
and credit reporting, and PLUS loans
are no longer delivered through both the
Federal Family Education Loan Program
as well as the William D. Ford Direct
Loan (Direct Loan) Program. Now, new
PLUS Loans are only made through the
Direct Loan Program. For these reasons,
the Department is seeking public
comment on whether and how it may be
appropriate to modify the current
regulatory definition of ‘‘adverse
credit.’’
After a review of the public comments
presented at the public hearings and in
the written submissions, we will
publish a notice in the Federal Register
announcing the specific subject areas for
which we intend to establish a
negotiated rulemaking committee and
VerDate Mar<15>2010
16:42 Apr 15, 2013
Jkt 229001
requesting nominations for individual
negotiators for the committee who
represent the interests significantly
affected by the proposed regulations.
This notice will also be posted on the
Department’s Web site at: https://
www2.ed.gov/policy/highered/reg/
hearulemaking/2012/.
Public Hearings
We will hold three public hearings for
interested parties to discuss the topics
included in this notice and to suggest
additional topics for the rulemaking
agenda.
The public hearings will be held on:
• May 21, 2013, at the U.S.
Department of Education, 1990 K Street,
NW., Eighth Floor Conference Center,
Washington, DC 20006.
• May 23, 2013, at the University of
Minnesota, Twin Cities, Hubert H.
Humphrey School of Public Affairs,
Cowles Auditorium, 301 19th Avenue S,
Minneapolis, MN 55455.
• May 30, 2013, at the University of
California, San Francisco, UC Hall,
Toland Hall Auditorium (Room U142),
533 Parnassus Avenue, San Francisco,
CA 94143.
The public hearings will be held from
9:00 a.m. to 4:00 p.m., local time.
Further information on the public
hearing sites, including directions, is
available at https://www2.ed.gov/policy/
highered/reg/hearulemaking/2012/
index.html.
Individuals desiring to present
comments at the public hearings must
register by sending an email to
negreghearing@ed.gov. The email
should include the name of the
presenter along with a general
timeframe during which the individual
would like to speak (for example, a
presenter could indicate morning or
afternoon, or before 11:00 a.m. or after
3:00 p.m.). We will attempt to
accommodate each speaker’s preference
but, if we are unable to do so, we will
make the determination on a first-come,
first-served basis (based on the time and
date the email was received). It is likely
that each participant will be limited to
five minutes. The Department will
notify registrants of the location and
time slot reserved for them. An
individual may make only one
presentation at the public hearings. If
we receive more registrations than we
are able to accommodate, the
Department reserves the right to reject
the registration of an entity or
individual that is affiliated with an
entity or individual that is already
scheduled to present comments and to
select among registrants to ensure that a
broad range of entities and individuals
is allowed to present. We will accept
PO 00000
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22469
walk-in registrations for any remaining
time slots on a first-come, first-served
basis beginning at 8:30 a.m. on the day
of the public hearing at the
Department’s on-site registration table.
Speakers may also submit written
comments. In addition, for anyone who
does not present at a public hearing, the
Department will accept written
comments through May 30, 2013. (See
the ADDRESSES sections of this notice for
submission information.)
Schedule for Negotiations
We anticipate that any committee
established after the public hearings
will begin negotiations in September
2013, with the committee meeting for
up to three sessions of approximately
four days each at roughly monthly
intervals. The committee will meet in
the Washington, DC area. The dates and
locations of these meetings will be
published in a subsequent document in
the Federal Register, and will be posted
on the Department’s Web site at: https://
www2.ed.gov/policy/highered/reg/
hearulemaking/2012/.
Electronic Access to This Document
The official version of this document
is the document published in the
Federal Register. Free Internet access to
the official edition of the Federal
Register and the Code of Federal
Regulations is available via the Federal
Digital System at: www.gpo.gov/fdsys.
At this site you can view this document,
as well as all other documents of the
Department published in the Federal
Register, in text or Adobe Portable
Document Format (PDF). To use PDF
you must have Adobe Acrobat Reader,
which is available free at the site. You
may also access documents of the
Department published in the Federal
Register by using the article search
feature at: www.federalregister.gov.
Specifically, through the advanced
search feature at this site, you can limit
your search to documents published by
the Department.
Program Authority: 20 U.S.C. 1098a.
Dated: April 11, 2013.
Martha Kanter,
Under Secretary for Education.
[FR Doc. 2013–08891 Filed 4–15–13; 8:45 am]
BILLING CODE 4000–01–P
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Agencies
[Federal Register Volume 78, Number 73 (Tuesday, April 16, 2013)]
[Proposed Rules]
[Pages 22467-22469]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-08891]
-----------------------------------------------------------------------
DEPARTMENT OF EDUCATION
34 CFR Chapter VI
[Docket ID ED-2013-OPE-0008]
Negotiated Rulemaking Committee; Public Hearings
AGENCY: Office of Postsecondary Education, Department of Education.
ACTION: Intent to establish negotiated rulemaking committee.
-----------------------------------------------------------------------
SUMMARY: In May 2012, we announced our intention to establish a
negotiated rulemaking committee to prepare proposed regulations for the
Federal Student Aid programs authorized under title IV of the Higher
Education Act of 1965, as amended (HEA) (title IV Federal Student Aid
programs). We now announce additional topics for consideration for
action by that committee. We also announce three public hearings at
which interested parties may comment on the new topics suggested by the
Department and may suggest additional topics for consideration for
action by the negotiated rulemaking committee. For anyone unable to
attend a public hearing, the Department will accept written comments.
DATES: The dates, times, and locations of the public hearings are
listed under the SUPPLEMENTARY INFORMATION section of this notice. We
must receive written comments suggesting issues that should be
considered for action by the negotiated rulemaking committee on or
before May 30, 2013.
ADDRESSES: Submit your comments through the Federal eRulemaking Portal
or via postal mail, commercial delivery, or hand delivery. We will not
accept comments by fax or by email. To ensure that we do not receive
duplicate copies, please submit your comments only once. In addition,
please include the Docket ID (listed at the beginning of this notice)
at the top of your comments.
Federal eRulemaking Portal: Go to www.regulations.gov to
submit your comments electronically. Information on using
Regulations.gov, including instructions for accessing agency documents,
submitting comments, and viewing the docket is available on the site
under ``How to Use Regulations.gov'' in the Help section.
Postal Mail, Commercial Delivery, or Hand Delivery. If you
mail or deliver your comments about these proposed regulations, address
them to Wendy Macias, U.S. Department of Education, 1990 K Street NW.,
Room 8017, Washington, DC 20006.
Privacy Note: The Department's policy is to make all comments
received from members of the public available for public viewing in
their entirety on the Federal eRulemaking Portal at
www.regulations.gov. Therefore, commenters should be careful to
include in their comments only information that they wish to make
publicly available.
FOR FURTHER INFORMATION CONTACT: For information about the public
hearings, go to https://www2.ed.gov/policy/highered/reg/hearulemaking/2012/ or contact: Wendy Macias, U.S. Department of Education,
1990 K Street NW., Room 8017, Washington, DC 20006. Telephone: (202)
502-7526. Email: wendy.macias@ed.gov.
For information about negotiated rulemaking in general, see The
Negotiated Rulemaking Process for Title IV Regulations, Frequently
Asked Questions at https://www2.ed.gov/policy/highered/reg/hearulemaking/hea08/neg-reg-faq.html or contact: Wendy Macias, U.S.
Department of Education, 1990 K Street NW., Room 8017, Washington, DC
20006. Telephone: (202) 502-7526. Email: wendy.macias@ed.gov.
If you use a telecommunications device for the deaf (TDD) or text
telephone (TTY), call the Federal Relay Service (FRS), toll free, at 1-
800-877-8339.
Individuals with disabilities can obtain this document in an
accessible format (e.g., braille, large print, audiotape, or compact
disc) by contacting Wendy Macias, U.S. Department of Education, 1990 K
Street NW., Room 8017, Washington, DC 20006. Telephone: (202) 502-7526.
Email: wendy.macias@ed.gov.
SUPPLEMENTARY INFORMATION: On May 1, 2012, we published a notice in the
Federal Register (77 FR 25658) announcing our intent to establish a
negotiated rulemaking committee under section 492 of the HEA to develop
proposed regulations designed to prevent fraud and otherwise ensure
proper use of title IV Federal Student Aid program funds, especially
within the context of current technologies. In particular, we announced
our intent to propose regulations to address the use of debit cards and
other banking mechanisms for disbursing title IV Federal Student Aid
program funds, and to improve and streamline the campus-based Federal
Student Aid programs. The notice also announced two public hearings at
which interested parties could comment on the topics suggested by the
Department and suggest additional topics for consideration for action
by the negotiated rulemaking committee. The hearings were held on May
23, 2012, in Phoenix, Arizona, and on May 31, 2012, in Washington, DC.
We invited parties to comment and submit topics for consideration in
writing as well. Transcripts from the hearings can be found at https://www2.ed.gov/policy/highered/reg/hearulemaking/2012/. Written
comments may be viewed through the Federal eRulemaking Portal at
www.regulations.gov. Instructions for finding comments are available on
the site under ``How to Use Regulations.gov'' in the Help section.
Individuals can enter docket ID ED-2012-OPE-0008 in the search box to
locate the appropriate docket.
At this time, we are announcing additional topics for consideration
for action by the negotiated rulemaking committee. These topics include
regulations that have been the subject of litigation over the past two
years. We are also announcing three additional public hearings at which
interested parties may comment on the new topics suggested by the
Department and may suggest additional topics for consideration for
action by the negotiating committee. For anyone unable to attend a
public hearing, the Department will accept written comments.
We intend to select participants for the negotiated rulemaking
committee from nominees of the organizations and groups that represent
the interests significantly affected by the proposed regulations. To
the extent possible, we will select individual negotiators who reflect
the diversity among program participants, in accordance with section
492(b)(1) of the HEA.
Regulatory Issues
Over the next several years, the Department intends to conduct
rulemakings related to the title IV Federal Student Aid programs. In
the near term, as indicated by the topics suggested in the May 1, 2012,
Federal
[[Page 22468]]
Register notice and in this notice, we plan to address program
integrity issues that place title IV Federal Student Aid program funds
at risk. We expect to announce the formation of additional negotiated
rulemaking committees to address more directly access to, and the
affordability of, higher education and possible steps to improve the
quality of higher education in the United States and to better
encourage students to complete their education. This long-term agenda
will take several years to complete.
The additional topics for consideration for action by the next
negotiated rulemaking committee are: cash management of funds provided
under the title IV Federal Student Financial Aid programs; State
authorization for programs offered through distance education or
correspondence education; State authorization for foreign locations of
institutions located in a State; clock-to-credit hour conversion;
gainful employment; changes made by the Violence Against Women
Reauthorization Act of 2013 (VAWA Reauthorization), Public Law 113-4,
to the campus safety and security reporting requirements in the HEA;
and the definition of ``adverse credit'' for borrowers in the Federal
Direct PLUS Loan Program.
Cash Management
In response to the May 1, 2012, Federal Register notice, we heard
testimony and received comments on disbursing title IV Federal Student
Aid program funds by electronic funds transfer (EFT) and on whether
students should have a greater role in deciding to accept debit cards
or other banking services that are provided through an institutionally-
controlled process or contracted provider. We are interested in further
modifying and updating the Department's cash management regulations in
subpart K of 34 CFR part 668. In particular, we are interested in
reducing the time by which an institution must refund to a student any
title IV Federal Student Aid program funds that are more than the
amount the institution charges for tuition and fees and other
educationally related costs, amending the regulations relating to
requirements for student authorizations, specifying when and how an
institution must disburse title IV Federal Student Aid program funds,
and addressing how title IV Federal Student Aid program funds are
provided to domestic and foreign schools and to students. In addition,
we are considering developing regulations governing how an institution
may use or invest title IV Federal Student Aid program funds held in
its federal or operating accounts or, if the institution transfers the
funds to a third-party servicer to make disbursements to students, how
those funds are managed by the provider.
State Authorization for Programs Offered Through Distance Education or
Correspondence Education
On October 29, 2010, we published final regulations (75 FR 66831)
to clarify what is required for an institution of higher education, a
proprietary institution of higher education, and a postsecondary
vocational institution to be considered legally authorized by a State
to offer an educational program in that State. The regulations in 34
CFR 600.9(c) specifically provided that, if an institution is offering
postsecondary education through distance or correspondence education to
students in a State in which the institution is not physically located
or in which it is otherwise subject to State jurisdiction as determined
by the State, the institution would be required to meet any State
requirements for it to legally offer postsecondary distance or
correspondence education in that State. Furthermore, under 34 CFR
600.9(c), an institution was required to document the State's approval
upon the Secretary's request.
On July 12, 2011, in response to a legal challenge by the Career
College Association, the U.S. District Court for the District of
Columbia vacated the regulation under 34 CFR 600.9(c) on procedural
grounds. Career College Ass'n v. Duncan, 796 F. Supp. 2d 108 (D.D.C.
2011). On August 14, 2012, on appeal, the U.S. Court of Appeals for the
D.C. Circuit affirmed the decision of the district court and ruled that
the regulation under 34 CFR 600.9(c) is not a logical outgrowth of the
Department's proposed rules. It remanded the case to the district court
with instructions to remand the regulation to the Department for
reconsideration consistent with the D.C. Circuit's opinion. Ass'n of
Private Sector Colleges and Universities v. Duncan, 681 F.3d 427 (D.C.
Cir. 2012). In order to address the procedural concerns identified by
the D.C. Circuit, the Department is now considering regulatory changes
related to State authorization for programs offered through distance
education or correspondence education.
State Authorization for Foreign Locations of Institutions Located in a
State
State authorization requirements for institutions located in a
State (as the term ``State'' is defined in 34 CFR 600.2) are
established in 34 CFR 600.9. The regulations do not specifically
address the State authorization requirements for foreign locations
(i.e., locations that are not located in a State) of institutions
located in a State. The Department is considering amending the State
authorization regulations to establish authorization requirements for
such foreign locations.
Clock to Credit Hour Conversion
We have heard concerns from schools and other parties about whether
schools should track the underlying clock hours in a program after the
program is converted to credit hours, as well as how the Department
should consider State approval or licensing requirements in determining
that a program is measured in clock hours for the purpose of awarding
title IV Federal Student Aid program funds. The clock to credit hour
conversion regulations are in 34 CFR 668.8(k) and (l). We are
requesting public input on whether these issues should be addressed by
the negotiated rulemaking committee.
Gainful Employment
On June 30, 2012, in response to a legal challenge by the
Association of Private Sector Colleges and Universities, the U.S.
District Court for the District of Columbia invalidated the repayment
rate threshold in the gainful employment regulations, and set aside the
requirement for institutions to report gainful employment program
information to the Department. Ass'n of Private Colleges and
Universities v. Duncan (D.D.C. 2012). That litigation is still ongoing;
however, the Department is interested in public input in this area. The
Department is interested in potential approaches to defining what it
means for a program to prepare students for gainful employment in a
recognized occupation. This includes thoughts on the best measures
(such as debt-to-earnings ratios or repayment rates) and their
thresholds for defining or evaluating gainful employment programs, how
best to construct an accountability system that accurately
distinguishes between successful and unsuccessful programs, and how to
address the establishment of new programs, as well as related ideas. In
considering these questions, the Department recommends taking into
account the information included in the program-level data we gathered
and released as Information Rates on June 26, 2012, available at https://studentaid.ed.gov/about/data-center/school/ge.
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Campus Safety and Security Reporting
The VAWA Reauthorization, enacted March 7, 2013, amended section
485(f) of the HEA, known as the Jeanne Clery Disclosure of Campus
Security Policy and Campus Crime Statistics Act (the Clery Act). These
amendments address the high rates of dating violence and sexual assault
on college campuses by requiring institutions to provide information to
students about domestic violence, dating violence, sexual assault, and
stalking, and to inform students and staff about the number of these
crimes that occur on and near campus. Institutions are also required to
create and disseminate policies describing the protections, resources,
and services available to victims to help them safely continue their
education. We intend to develop proposed regulations to implement these
changes.
Definition of ``Adverse Credit'' for the Direct PLUS Loan Program
The PLUS Loan Program provides loans up to the amount of the cost
of attendance to graduate students and parents. In light of the unique
nature of the PLUS Loan Program, Congress limited eligibility to
graduate or professional students or parents who do not have an adverse
credit history, as determined pursuant to regulations promulgated by
the Secretary. Under regulations published by the Department in 1994, a
PLUS loan applicant is considered to have an ``adverse credit history''
if the applicant (1) is 90 or more days delinquent on the repayment of
any debt or (2) has been the subject of a default determination,
bankruptcy discharge, foreclosure, repossession, tax lien, wage
garnishment, or write-off of a title IV debt during the five years
preceding the date of the credit report (34 CFR 685.200(c)(1)(vii)(B)).
Since 1994, much has changed in consumer credit markets and credit
reporting, and PLUS loans are no longer delivered through both the
Federal Family Education Loan Program as well as the William D. Ford
Direct Loan (Direct Loan) Program. Now, new PLUS Loans are only made
through the Direct Loan Program. For these reasons, the Department is
seeking public comment on whether and how it may be appropriate to
modify the current regulatory definition of ``adverse credit.''
After a review of the public comments presented at the public
hearings and in the written submissions, we will publish a notice in
the Federal Register announcing the specific subject areas for which we
intend to establish a negotiated rulemaking committee and requesting
nominations for individual negotiators for the committee who represent
the interests significantly affected by the proposed regulations. This
notice will also be posted on the Department's Web site at: https://www2.ed.gov/policy/highered/reg/hearulemaking/2012/.
Public Hearings
We will hold three public hearings for interested parties to
discuss the topics included in this notice and to suggest additional
topics for the rulemaking agenda.
The public hearings will be held on:
May 21, 2013, at the U.S. Department of Education, 1990 K
Street, NW., Eighth Floor Conference Center, Washington, DC 20006.
May 23, 2013, at the University of Minnesota, Twin Cities,
Hubert H. Humphrey School of Public Affairs, Cowles Auditorium, 301
19th Avenue S, Minneapolis, MN 55455.
May 30, 2013, at the University of California, San
Francisco, UC Hall, Toland Hall Auditorium (Room U142), 533 Parnassus
Avenue, San Francisco, CA 94143.
The public hearings will be held from 9:00 a.m. to 4:00 p.m., local
time. Further information on the public hearing sites, including
directions, is available at https://www2.ed.gov/policy/highered/reg/hearulemaking/2012/.
Individuals desiring to present comments at the public hearings
must register by sending an email to negreghearing@ed.gov. The email
should include the name of the presenter along with a general timeframe
during which the individual would like to speak (for example, a
presenter could indicate morning or afternoon, or before 11:00 a.m. or
after 3:00 p.m.). We will attempt to accommodate each speaker's
preference but, if we are unable to do so, we will make the
determination on a first-come, first-served basis (based on the time
and date the email was received). It is likely that each participant
will be limited to five minutes. The Department will notify registrants
of the location and time slot reserved for them. An individual may make
only one presentation at the public hearings. If we receive more
registrations than we are able to accommodate, the Department reserves
the right to reject the registration of an entity or individual that is
affiliated with an entity or individual that is already scheduled to
present comments and to select among registrants to ensure that a broad
range of entities and individuals is allowed to present. We will accept
walk-in registrations for any remaining time slots on a first-come,
first-served basis beginning at 8:30 a.m. on the day of the public
hearing at the Department's on-site registration table.
Speakers may also submit written comments. In addition, for anyone
who does not present at a public hearing, the Department will accept
written comments through May 30, 2013. (See the ADDRESSES sections of
this notice for submission information.)
Schedule for Negotiations
We anticipate that any committee established after the public
hearings will begin negotiations in September 2013, with the committee
meeting for up to three sessions of approximately four days each at
roughly monthly intervals. The committee will meet in the Washington,
DC area. The dates and locations of these meetings will be published in
a subsequent document in the Federal Register, and will be posted on
the Department's Web site at: https://www2.ed.gov/policy/highered/reg/hearulemaking/2012/.
Electronic Access to This Document
The official version of this document is the document published in
the Federal Register. Free Internet access to the official edition of
the Federal Register and the Code of Federal Regulations is available
via the Federal Digital System at: www.gpo.gov/fdsys. At this site you
can view this document, as well as all other documents of the
Department published in the Federal Register, in text or Adobe Portable
Document Format (PDF). To use PDF you must have Adobe Acrobat Reader,
which is available free at the site. You may also access documents of
the Department published in the Federal Register by using the article
search feature at: www.federalregister.gov. Specifically, through the
advanced search feature at this site, you can limit your search to
documents published by the Department.
Program Authority: 20 U.S.C. 1098a.
Dated: April 11, 2013.
Martha Kanter,
Under Secretary for Education.
[FR Doc. 2013-08891 Filed 4-15-13; 8:45 am]
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