Federal Student Aid Programs (Student Assistance General Provisions, Federal Perkins Loan Program, William D. Ford Federal Direct Loan Program, and Federal-Work Study Programs), 79856-79863 [2020-27042]
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79856
Federal Register / Vol. 85, No. 239 / Friday, December 11, 2020 / Rules and Regulations
F. Environment
We have analyzed this rule under
Department of Homeland Security
Directive 023–01, Rev. 1, associated
implementing instructions, and
Environmental Planning COMDTINST
5090.1 (series), which guide the Coast
Guard in complying with the National
Environmental Policy Act of 1969 (42
U.S.C. 4321–4370f), and have
determined that this action is one of a
category of actions that do not
individually or cumulatively have a
significant effect on the human
environment. This rule involves a safety
zone that will prohibit entry on a onemile stretch of the Lower Mississippi
River for three hours on one evening. It
is categorically excluded from further
review under paragraph L60(a) of
Appendix A, Table 1 of UDHS
Instruction Manual 023–01–001–01,
Rev. 1. A Record of Environmental
Consideration supporting this
determination is available in the docket.
For instructions on locating the docket,
see the ADDRESSES section of this
preamble.
G. Protest Activities
List of Subjects in 33 CFR Part 165
BILLING CODE 9110–04–P
Federal Student Aid Programs
(Student Assistance General
Provisions, Federal Perkins Loan
Program, William D. Ford Federal
Direct Loan Program, and FederalWork Study Programs)
The Secretary is issuing
updated waivers and modifications of
statutory and regulatory provisions
governing the Federal student financial
aid programs under the authority of the
Higher Education Relief Opportunities
for Students Act of 2003 (HEROES Act
or Act). The HEROES Act requires the
Secretary to publish, in a document in
the Federal Register, the waivers or
modifications of statutory or regulatory
provisions applicable to the student
financial assistance programs under title
IV of the Higher Education Act of 1965,
as amended (HEA), to assist individuals
who are performing qualifying military
service, and individuals who are
affected by a disaster, war, or other
military operation or national
emergency, as described in the
SUPPLEMENTARY INFORMATION section of
this document. On March 13, 2020,
SUMMARY:
1. The authority citation for part 165
continues to read as follows:
■
Authority: 46 U.S.C. 70034, 70051; 33 CFR
1.05–1; 6.04–1, 6.04–6, and 160.5;
Department of Homeland Security Delegation
No. 0170.1.
2. Add § 165.T08–0641 to read as
follows:
■
§ 165.T08–0641 Safety Zone; Lower
Mississippi River, Natchez, MS.
(a) Location. The following area is a
safety zone: All navigable waters of the
Lower Mississippi River from Mile
Marker (MM) 364.5 through MM 365.5.
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34 CFR parts 600, 602, 668, 673, 674,
682, and 685
Office of Postsecondary
Education, Department of Education.
ACTION: Updated waivers and
modifications of statutory and
regulatory provisions.
PART 165—REGULATED NAVIGATION
AREAS AND LIMITED ACCESS
AREAS.
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[FR Doc. 2020–26866 Filed 12–10–20; 8:45 am]
AGENCY:
Harbors, Marine safety, Navigation
(water), Reporting and recordkeeping
requirements, Security measures,
Waterways.
For the reasons discussed in the
preamble, the Coast Guard amends 33
CFR part 165 as follows:
22:08 Dec 10, 2020
Dated: December 2, 2020.
R.S. Rhodes,
Captain, U.S. Coast Guard, Captain of the
Port Sector Lower Mississippi River.
DEPARTMENT OF EDUCATION
The Coast Guard respects the First
Amendment rights of protesters.
Protesters are asked to call or email the
person listed in the FOR FURTHER
INFORMATION CONTACT section to
coordinate protest activities so that your
message can be received without
jeopardizing the safety or security of
people, places or vessels.
VerDate Sep<11>2014
(b) Regulations. (1) Under the general
safety zone regulations in subpart C of
this part, you may not enter the safety
zone described in paragraph (a) of this
section unless authorized by the Captain
of the Port Sector Lower Mississippi
River (COTP) or the COTP’s designated
representative.
(2) To seek permission to enter,
contact the COTP or the COTP’s
representative via VHF–FM channel 16
or by telephone at 901–521–4822. Those
in the safety zone must comply with all
lawful orders or directions given to
them by the COTP or the COTP’s
designated representative.
(c) Enforcement period. This section
will be enforced 4 p.m. through 7 p.m.
on December 31, 2020. Periods of
activation will be promulgated by
Broadcast Notice to Mariners.
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President Trump declared a national
emergency based on the COVID–19
outbreak. (Proclamation on Declaring a
National Emergency Concerning the
Novel Coronavirus Disease (COVID–19)
Outbreak, available at https://
www.whitehouse.gov/presidentialactions/proclamation-declaringnational-emergency-concerning-novelcoronavirus-disease-covid-19outbreak/).
DATES: Effective December 11, 2020. The
waivers and modifications in this
document expire as noted within each
of the provisions below, unless
extended by the Secretary in a
document published in the Federal
Register.
FOR FURTHER INFORMATION CONTACT:
Barbara Hoblitzell, by telephone: (202)
453–7583 or by email:
Barbara.Hoblitzell@ed.gov, or Gregory
Martin, by telephone: (202) 453–7535 or
by email: Gregory.Martin@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.
SUPPLEMENTARY INFORMATION:
The Secretary is issuing these waivers
and modifications under the authority
of the HEROES Act, as codified at 20
U.S.C. 1098bb(a)(2), which authorizes
the Secretary to waive or modify any
statutory or regulatory provision
applicable to the Federal student
financial assistance programs under title
IV of the HEA, 20 U.S.C. 1070 et seq.,
as the Secretary deems necessary in
connection with a war or other military
operation or national emergency to
affected individuals who are recipients
of Federal student financial assistance
under title IV of the HEA, institutions of
higher education (IHEs), eligible
lenders, guaranty agencies, and other
entities participating in the Federal
student assistance programs under title
IV of the HEA that are located in areas
that are declared disaster areas by any
Federal, State, or local official in
connection with a national emergency,
or whose operations are significantly
affected by such a disaster. These
entities may be granted temporary relief
from requirements that are rendered
infeasible or unreasonable by a national
emergency, including due diligence
requirements and reporting deadlines.
In 20 U.S.C. 1098bb(b)(1), the
HEROES Act further provides that
section 437 of the General Education
Provisions Act (20 U.S.C. 1232) and
section 553 of the Administrative
Procedure Act (5 U.S.C. 553) do not
apply to the contents of this document.
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Federal Register / Vol. 85, No. 239 / Friday, December 11, 2020 / Rules and Regulations
The terms ‘‘institution of higher
education’’ and ‘‘institution of higher
education for purposes of title IV
programs’’ (IHE) used in this document
are defined in sections 101 and 102 of
the HEA.
In 20 U.S.C. 1098ee, the HEROES Act
provides definitions critical to
determining whether a person is an
‘‘affected individual’’ under the Act
and, if so, which waivers and
modifications apply to the affected
individual. However, because these
definitions do not include the specific
circumstances under which these
waivers and modifications are provided
under the HEROES Act, we provide
these definitions below.
For purposes of this document,
‘‘affected individual’’ means a student
enrolled in a postsecondary institution.
An ‘‘affected borrower’’ is one whose
Federal student loans provided under
title IV are in repayment. These
definitions are in keeping with 20
U.S.C. 1098bb(a)(2) that establishes that
statutory and regulatory provisions can
be waived or modified ‘‘as necessary to
ensure that recipients of student
financial assistance under title IV of the
[HEAb who are affected individuals are
not placed in a worse position
financially in relation to that financial
assistance because of their status as
affected individuals’’. The statute also
provides that administrative
requirements placed on affected
individuals who are recipients of
student financial assistance are
minimized, to the extent possible
without impairing the integrity of the
student financial assistance programs, to
ease the burden on such students and
avoid inadvertent, technical violations,
or defaults.
In accordance with the HEROES Act,
the Secretary is providing the following
waivers and modifications of statutory
and regulatory provisions applicable to
the student assistance general
provisions and student financial
assistance programs under title IV of the
HEA that the Secretary believes are
necessary to ensure that, during and in
response to the COVID–19 pandemic—
• Accrediting agencies and
associations are permitted to conduct
virtual site visits of institutions or
programs currently under review,
scheduled for initial or renewal of
accreditation, or in a show-cause or
probationary status;
• IHEs may ensure continuity of
instruction and learning by employing
distance education to protect the health
of their students, faculty, and staff;
• IHEs that are undergoing a change
of ownership are provided additional
time to gather the records, data,
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financial information, and approvals
necessary to support their change of
ownership application, and their
temporary program participation
agreements are extended while the
application is pending;
• Foreign graduate medical schools
that participate in the Federal Direct
Loan Program are not required to obtain
and report test results from the Medical
College Admission Test (MCAT) from
applicants during admission years in
which the COVID–19 national
emergency is in effect;
• Entities not submitting single audits
in accordance with the audit
requirements of 2 CFR 200, subpart F,
are provided an additional six months
to submit their annual compliance and
financial statement audits;
• IHEs that resume offering
educational programs after temporarily
closing or suspending their educational
programs due to COVID–19 are not
considered to have ended their
participation in the title IV, HEA
programs;
• IHEs that offer existing short-term
programs that qualify for Federal Direct
Loans, or began offering a short-term
program prior to the COVID emergency,
are given some flexibility for programs
affected by COVID–19;
• IHEs are provided additional
flexibility to approve leaves of absence
for students whose coursework is
suspended due to the COVID–19
pandemic;
• IHEs are provided additional time
to comply with deadlines for campus
security, fire safety, and equity in
athletics disclosures;
• IHEs are permitted to waive the
requirement for a parental signature in
the event that it cannot be obtained, or
accept a document signed and
photographed and sent by email or text
message attachment, on any verification
documentation required to validate a
student’s title IV eligibility;
• IHEs that participate in the Federal
student financial aid programs under
the heightened cash monitoring one
(HCM1) status are provided flexibility to
pay student credit balances after
drawing down title IV funds;
• IHEs are provided alternative
methods for disbursing title IV, HEA
credit balance funds to students;
• IHEs that were experiencing
challenges accessing data and preparing
their cohort default rate (CDR) appeals
during the national emergency were
permitted to submit appeals to the draft
fiscal year (FY) 2017 CDRs on or before
June 30, 2020;
• IHEs are provided additional time
to complete and submit their Fiscal
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Operations Report and Application to
Participate (FISAP);
• IHEs that participate in the Federal
Work-Study (FWS) programs are not
subject to the FWS community service
requirements during the national
emergency;
• Perkins Loan and HEAL borrowers
whose loans are held by the Department
of Education (Department) are afforded
the same benefits extended to Direct
Loan borrowers in the Coronavirus Aid,
Relief, and Economic Security (CARES)
Act; 1
• Borrowers with loans under the
Federal Family Education Loan (FFEL),
Federal Perkins Loan, HEAL, and Direct
Loan programs that are held by the
Department, did not accrue interest on
those loans from March 13, 2020 to
March 27, 2020. Borrowers were also
permitted to suspend payment on their
loans without any penalties during this
period. The automatic suspension of
payment and the application of a zero
percent interest rate on loans held by
the Department was extended to
October 1, 2020, under the CARES Act.
Those benefits were further extended
through December 31, 2020, by the
President through the Presidential
Memorandum issued on August 8,
2020; 2
• Borrowers who, prior to July 1,
2020, submitted an application for
borrower defense to repayment (BD)
relief that included a FFEL or Perkins
loan and who would need to
consolidate those loans into a Direct
Consolidation Loan (DCL) to receive BD
relief will have their eligibility for relief
be adjudicated under the standards for
Direct Loans disbursed between July 1,
2017, and July 1, 2020.
• Borrowers participating in incomedriven repayment plans are not required
to recertify their income or family size
until after the administrative
forbearance period extended by the
August 8, 2020, Presidential
Memorandum expires, and will be
notified of a new certification deadline
thereafter;
• Borrowers participating in incomecontingent repayment plans who do not
make payments during the COVID–19
emergency will generally not have any
interest capitalized upon the conclusion
of the COVID–19-related administrative
forbearance period; and
• IHEs are provided academic
calendar flexibility to address
scheduling complications that have
1 https://www.congress.gov/bill/116th-congress/
house-bill/748/text.
2 https://www.whitehouse.gov/presidentialactions/memorandum-continued-student-loanpayment-relief-covid-19-pandemic/.
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arisen as a result of the COVID–19
national emergency.
Prior waivers granted by the Secretary
under this Act remain in effect for
affected individuals, as defined in those
waivers.
Statutory Waiver Granted Under the
Heroes Act in Response to the Covid–
19 Pandemic
Recognition of Accrediting Agency or
Association (HEA § 496, 20 U.S.C.
1099b)
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HEA § 496(c)(1) (20 U.S.C.
1099b(c)(1)) provides that a recognized
accrediting agency or association must
perform, at regularly established
intervals, on-site inspections and
reviews of IHEs (which may include
unannounced site visits) with particular
focus on educational quality and
program effectiveness, and ensures that
accreditation team members are welltrained and knowledgeable with respect
to their responsibilities, including those
regarding distance education.
HEA § 496(c)(1) (20 U.S.C.
1099b(c)(5)) provides that an accrediting
agency or association must agree to
conduct, as soon as practicable, but
within a period of not more than six
months of the establishment of a new
branch campus or a change of
ownership of an IHE, an on-site visit of
that branch campus or of the institution
after a change of ownership.
The Secretary is waiving these
requirements, for the duration of the
national emergency declaration and 180
days following the date on which the
COVID–19 national emergency
declaration is rescinded, to provide
accrediting agencies and associations
the flexibility to develop, adopt, modify,
and implement temporary virtual site
visit policies. Virtual site visits should
rely on an engaged, interactive format
(e.g., telephonic meetings, video
conference calls), rather than solely
relying upon document reviews or
exchanges of emails.
However, if a site visit within six
months after a change of ownership is
conducted virtually, a follow up inperson visit must be conducted within
90 days following the date on which the
COVID–19 national emergency
declaration is rescinded.
Regulatory Waivers Granted Under the
Heroes Act in Response to the Covid–
19 Pandemic Distance Education (34
CFR 600.9, 602.16, 602.18, 602.19, and
602.27)
Section 600.9(c) requires IHEs to
obtain State authorization to provide
postsecondary educational programs
through distance education. The
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Secretary is waiving this requirement
for payment periods that overlap March
5, 2020, or begin after March 5, 2020,
through the end of the payment period
that begins after the date on which the
Federally-declared national emergency
related to COVID–19 is rescinded.
This waiver applies only to the
Department’s requirements; IHEs will
need to determine whether the distance
education being provided meets the
applicable State requirements.
The Secretary is providing this waiver
so that IHEs may provide programs
using distance education to
accommodate students without
requiring such institutions to obtain
Department approval to provide the
program through distance education. If
an IHE chooses to continue offering a
program or use distance education in a
manner requiring the Department’s
approval after the waiver period ends, it
must obtain approval under the
Department’s normal process.
Section 602.16 provides that an
accrediting agency or association that
has within its scope of recognition the
evaluation of the quality of institutions
or programs offering distance education,
correspondence courses, or direct
assessment education, must have
standards that effectively address the
quality of an institution’s distance
education, correspondence courses, or
direct assessment education. The
Secretary is waiving, for the duration of
the national emergency declaration and
180 days following the date on which
the COVID–19 national emergency
declaration is rescinded, this
requirement so that accreditors may
waive their distance education review
requirements for institutions working to
accommodate students whose
enrollment is otherwise interrupted as a
result of COVID–19. This waiver is
limited to distance learning
opportunities developed specifically for
the purpose of serving students who
were already in attendance, and whose
attendance was interrupted by COVID–
19.
Section 602.16(a)(2)(ii) limits to five
years the duration of preaccreditation
status that can be granted by an
accrediting agency before a final
determination can be made. The
Secretary is waiving, for the duration of
the national emergency declaration and
180 days following the date on which
the COVID–19 national emergency
declaration is rescinded, this
requirement to enable accrediting
agencies sufficient opportunity to
complete their assessment of a
preaccredited institution for a final
accreditation determination.
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Section 602.19(a) requires accrediting
agencies to reevaluate, at regularly
established intervals, the institutions or
programs it has accredited or
preaccredited. The Secretary is waiving
this requirement, for the duration of the
national emergency declaration and 180
days following the date on which the
COVID–19 national emergency
declaration is rescinded, to provide
accrediting agencies the flexibility to
develop, adopt, modify, and implement
temporary virtual site visit policies.
With the approval of the accrediting
agency’s board, or other decisionmaking body, during a telephonic or
video conference meeting, accrediting
agencies may adopt or modify
temporary virtual site visit policies
without a public comment period.
Because these policies would be
temporary and arise from the unique set
of circumstances and challenges
presented by the COVID–19 pandemic,
this approval would not require a vote
of the full membership of the
accrediting agency. Should an
accrediting agency desire to make a
temporary virtual site visit policy or
policy modification permanent after the
COVID–19 national emergency
declaration is rescinded, it must adhere
to applicable statutory and regulatory
requirements.
The Secretary is also waiving the
requirements under § 602.21(c), for the
duration of the national emergency
declaration and 180 days following the
date on which the COVID–19 national
emergency declaration is rescinded, to
enable accrediting agencies to expedite
the development of temporary standards
to approve distance learning programs
or courses, including agencies that did
not previously have distance learning in
their scope and for institutions that did
not previously offer distance learning
opportunities. However, in accrediting
clock-hour programs for which
licensure boards approved the use of
distance learning to meet the ‘‘clockhour of instruction’’ requirements,
agencies must continue to meet the
requirements under § 602.21(c).
On September 2, 2020, the Secretary
amended the Department’s regulations
to permanently permit the use of
synchronous and asynchronous distance
learning in the delivery of clock-hour
programs by distance learning if the
relevant licensure body will accept
distance learning hours to meet
licensure requirements. Institutions are
permitted to implement this new
regulation immediately; otherwise, the
new regulation goes into effect on July
1, 2021.
The Secretary is also waiving the
requirement in § 602.27(a)(4) that an
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accrediting agency must expand its
scope of recognition by notifying the
Secretary prior to accrediting programs
and institutions that provide education
through distance learning. During the
COVID–19 national emergency, an
accrediting agency need not expand its
scope of recognition to include distance
learning in order to approve its member
programs or institutions to offer
distance learning.
Notice and Application Procedures for
Establishing, Reestablishing,
Maintaining, or Expanding Institutional
Eligibility and Certification (34 CFR
600.20)
Section 600.20(h)(3)(iii) provides that
the Secretary will extend an
institution’s provisional Program
Participation Agreement (PPA) on a
month-to-month basis after the
expiration date if, prior to that
expiration date, the institution provides
the Secretary with approval of the
change of ownership from the
institution’s accrediting agency.
In keeping with the waivers provided
in § 600.31, the Secretary is waiving,
through the end of the payment period
that begins after the date on which the
Federally-declared national emergency
related to COVID–19 is rescinded, the
requirement to provide approval of the
change of ownership from the
institution’s accrediting agency within
the time period set forth in
600.20(h)(3)(iii).
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Institutional Eligibility—Change of
Ownership (34 CFR 600.31)
The Secretary is waiving
§ 600.31(a)(2) and providing an
additional six months for IHEs to
provide the approvals from the
institution’s accrediting agency and
State, and the same-day balance sheet or
statement of financial position prepared
under required financial standards
pursuant to § 600.20(h)(3), that is
ordinarily due by the end of the month
following the change of ownership. The
Secretary will accept unaudited
financial statements for the IHE’s and
new owner’s most recently completed
fiscal year within the time frame
established under § 600.20(g)(1),
provided that the submission includes
the engagement letters for the audited
financial statements under § 600.20(g)(2)
to be completed for submission to the
Department the earlier of six months
after the change in ownership or 30 days
after the date of the auditor’s report with
the financial statements. This waiver is
in effect for the duration of the national
emergency declaration and 180 days
following the date on which the
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COVID–19 national emergency
declaration is rescinded.
Medical College Admissions Test
(MCAT) (34 CFR 600.55)
Section 600.55(c) requires a foreign
graduate medical school having a postbaccalaureate or equivalent medical
program that participates in the Federal
Direct Loan program to require students
accepted for admission who are U.S.
citizens, nationals, or permanent
residents to have taken the MCAT and
to have reported their scores to the
foreign graduate medical school.
The Secretary is waiving, for the
duration of admissions years in which
the COVID–19 national emergency
declaration is in effect, the requirement
that to participate in the Federal Direct
Loan program, a foreign medical school
must require students to take the MCAT.
Application of Standards in Reaching
an Accrediting Decision (34 CFR 602.17)
As a result of travel restrictions, Statemandated campus closures, and
administrative decisions to move
instruction to distance learning,
accrediting agencies may need to
perform required site visits virtually.
Therefore, beginning on March 13, 2020,
for the duration of the national
emergency declaration and 180 days
following the date on which the
COVID–19 national emergency
declaration is rescinded, the Secretary is
waiving the provisions of § 602.17(c)
that require accrediting agencies to
conduct at least one on-site review of
the institution or program during which
it obtains sufficient information to
determine if the institution or program
complies with the agency’s standards.
Accrediting agencies may conduct
required site visits for monitoring
performance virtually at regularly
scheduled intervals or renewal of
accreditation.
The Secretary continues to require
that in the case such a site visit is
associated with making an award of
accreditation or preaccreditation, the
agency must perform a limited inperson site visit as soon as practicable.
This limited in-person site visit need
not replicate the virtual visit, or
elements thereof, and need not include
the full team that participated in the
virtual site visit, but could be conducted
through a limited visit performed by
agency staff or a single site visitor.
Virtual site visits should rely on an
engaged, interactive format (e.g.,
telephonic meetings, video conference
calls), rather than solely relying upon
document reviews or exchanges of
emails.
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Substantive Changes and Other
Reporting Requirements (34 CFR 602.22)
Section 602.22(d) requires accrediting
agencies to have an effective mechanism
for conducting, at reasonable intervals,
visits to a representative sample of
additional locations they have
approved.
Section 602.22(f)(1) requires an
accrediting agency to conduct a site
visit, within six months, to each
additional location an institution
establishes (when the total number of
additional locations, where at least 50
percent of an educational program is
offered, is three or fewer and the
locations are not considered to be
branch campuses).
Section 602.22(f)(2) requires an
accrediting agency to have a mechanism
for conducting, at reasonable intervals,
visits to a representative sample of
additional locations an institution
establishes (when the total number of
additional locations, where at least 50
percent of an educational program is
offered, is more than three and the
locations are not considered to be
branch campuses).
The Secretary is waiving these
requirements for the duration of the
national emergency declaration and 180
days following the date on which the
COVID–19 national emergency
declaration is rescinded and permitting
accrediting agencies to conduct these
visits virtually. Virtual site visits should
rely on an engaged, interactive format
(e.g., telephonic meetings, video
conference calls), rather than solely
relying upon document reviews or
exchanges of emails.
Additional Procedures Certain
Institutional Agencies Must Have (34
CFR 602.24)
Section 602.24(b) provides that an
accrediting agency must undertake a site
visit to a new branch campus, or
following a change of ownership or
control, as soon as practicable, but no
later than six months, after the
establishment of that campus or the
change of ownership or control.
The Secretary is waiving these
requirements, for the duration of the
national emergency declaration and 180
days following the date on which the
COVID–19 national emergency
declaration is rescinded, to permit
accrediting agencies to conduct these
visits virtually. Virtual site visits should
rely on an engaged, interactive format
(e.g., telephonic meetings, video
conference calls), rather than solely
relying upon document reviews or
exchanges of emails.
However, if a site visit within six
months after a change of ownership is
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conducted virtually, a follow up inperson visit must be conducted within
90 days following the date on which the
COVID–19 national emergency
declaration is rescinded.
accreditation to offer distance education
programs.
Program Eligibility (34 CFR 668.8)
Under § 668.22(d), an IHE is not
permitted to place students on a leave
of absence during the suspension of
coursework, including clinicals or
internships/externships. However, if the
coursework suspension results from a
COVID–19 related circumstance, IHEs
may grant an approved leave of absence
to affected students. Approved leaves of
absence granted due to COVID–19related concerns or limitations are
considered to fall under the exception
provided in § 668.22(d)(3)(iii)(B)
permitting, in the case of unforeseen
circumstances, an IHE to grant such
leave prior to the student’s request. A
written request for leave of absence for
that period must subsequently be
obtained from the student. These
flexibilities apply to all leaves of
absence granted through the end of the
payment period that begins after the
date on which the Federally-declared
national emergency related to COVID–
19 is rescinded.
Section 668.22(d)(1)(vi) provides that
the maximum number of days in an
approved leave of absence, when added
to the number of days in all other
approved leaves of absence, may not
exceed 180 in any 12-month period. The
Secretary modifies this requirement and
extends the maximum number of days
from 180 (in any 12-month period) to
allow a leave of absence to be extended
to December 31, 2020.
Short-Term Programs
Sections 668.8(d)(3) and (e) provide
that proprietary IHEs and postsecondary
vocational institutions that offer shortterm programs must demonstrate in
their annual compliance audits that
students enrolled in the programs had
completion and job placement rates of at
least 70 percent before those programs
qualify, or continue to qualify, as
eligible programs for Federal Direct
Loans (the ‘‘70/70 qualifying
requirements’’).
The Secretary waives the 70/70
qualifying requirements for any award
year in which the COVID–19 national
emergency declaration was in place for
at least one day during the award year.
Institutions must continue to report
completion and placement rates for
short-term programs for such award
years in compliance audits, but the
programs will remain eligible even if
they do not meet the 70/70
requirements. Short-term programs will
once again be required to meet the 70/
70 qualifying requirements for any
future award year in which the COVID–
19 national emergency declaration is not
in effect.
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New Distance Education Programs
Section 668.8(m) provides that an
otherwise eligible program that is
offered in whole or in part through
telecommunications is eligible for title
IV, HEA program purposes if the
program is offered by an institution,
other than a foreign institution, that has
been evaluated and is accredited for its
effective delivery of distance education
programs by an accrediting agency or
association that is recognized by the
Secretary under subpart 2 of part H of
the HEA, and has accreditation of
distance education within the scope of
its recognition.
In recognition that many
postsecondary institutions needed to
implement distance learning solutions
to continue educating students in
response to campus interruptions or the
unexpected return of students from
travel abroad experiences, the Secretary
is waiving, through the end of the
payment period that begins after the
date on which the Federally-declared
national emergency related to COVID–
19 is rescinded, the requirement that
these IHEs must have obtained
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Approved Leaves of Absence (34 CFR
668.22)
Treatment of Direct Loan Funds if a
Student Does Not Begin Attendance (34
CFR 668.21(a)(2)(ii))
The Secretary is waiving the
requirement in § 668.21(a)(2)(ii) that an
institution notify the Direct Loan
Servicer when a borrower who has
received a credit balance payment
composed of Federal Direct Loan funds
will not or has not begun attendance, so
that the servicer will issue a final
demand letter. Under this waiver, in
such circumstances, the institution
should not notify the servicer. The
amount of the Direct Loan credit
balance will be the borrower’s
responsibility to repay under the terms
of the promissory note. This waiver
expires at the end of the payment period
that begins after the date on which the
Federally-declared national emergency
related to COVID–19 is rescinded.
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Annual Compliance and Financial
Statement Audit Submission Deadlines
(34 CFR 668.23)
For IHEs and other entities subject to
the Single Audit Act and the
implementing regulations at 2 CFR
Subpart F that submit an audit under
the Single Audit Act, the Department
will consider the audit submission of
the IHE or other entity timely if it is
submitted to the Department through
eZ-Audit or as directed by the
Department at the same time it is timely
submitted to the Federal Audit Clearing
House under Office of Management and
Budget guidance M 20–26 for COVID–19
audit submissions and any future
extensions provided by the Office of
Management and Budget.
IHEs and other entities that do not
submit audits under the Single Audit
Act are required under § 668.23 to
submit their annual compliance audit
and financial statements no later than
six months after the last day of their
fiscal year. For any such audits that are
due to be submitted to the Department
no later than March 1, 2020, through
December 31, 2020, or other periods
specified by the Secretary, the Secretary
is extending the submission deadline up
to an additional six months t and other
entities to provide more time for the IHE
auditors to complete those audits. For
IHEs and other entities choosing to
submit their audits after the normal due
date, the Department will consider the
audits to be submitted timely if they are
submitted to eZ-audit or as directed by
the Department no later than 30
calendar days after the date of the audit
report. If date of the audit report is prior
to the date of this notice, IHEs and other
entities have 30 calendar days from the
date of this notice to submit their
required audits.
End of an Institution’s Participation in
the Title IV, HEA Programs (34 CFR
668.26(a)(1) and (2))
Section 668.26 provides that an IHE’s
participation in a title IV, HEA program
ends on the date that the IHE closes or
stops providing educational programs
for a reason other than a normal
vacation period or a natural disaster that
directly affects the IHE or the IHE’s
students, or on the date it loses its
institutional eligibility under part 600.
The Secretary is waiving this
requirement in recognition that some
IHEs are unable to convert their
programs to an alternative instructional
modality during the COVID–19
pandemic. IHEs that have interrupted
their on-campus instruction without
converting to an alternative
instructional modality, either on-ground
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or online, must resume instruction by
the start of the institution’s scheduled
payment period, as published in the
institution’s academic calendar, one
payment period after the payment
period in which the COVID–19 national
emergency is lifted to continue their
participation in the title IV, HEA
programs.
The Department retains the discretion
to determine that an institution has
closed based on its assessment of the
institution’s capacity to reopen at the
end of the COVID–19 national
emergency.
Campus Security, Fire Safety, and
Equity in Athletics Disclosures (34 CFR
668.41)
The Secretary extends the October 1
deadline in § 668.41(e)(1) for IHEs to
distribute their Annual Security Reports
and Annual Fire Safety Reports
(required under § 668.46(b) and
§ 668.49(b), respectively) to required
recipients to December 31, 2020.
Likewise, the October 15 deadline
established in § 668.41(g)(1) for IHEs to
distribute their annual Equity in
Athletics Disclosure Act (EADA)
disclosures (required under § 668.47(c))
to required recipients is extended to
December 31, 2020.
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Acceptable Documentation (34 CFR
668.57(b), (c), and (d))
Sections 668.57(b) and (c) require a
statement signed by both the applicant
and one of the applicant’s parents if the
applicant is a dependent student, or
only the applicant if the applicant is an
independent student, to verify the
number of family members in the
household and the number of family
members enrolled in IHEs. Pursuant to
§ 668.57(d), an applicant may also be
required to verify other information
specified in the annual Federal Register
document that announces the Free
Application for Federal Student Aid
(FAFSA) information as well as the
acceptable documentation for verifying
that FAFSA information. IHEs are
permitted to waive the requirement for
a parental signature in the event that it
cannot be obtained, or accept a
document signed and photographed and
sent by email or text message
attachment, on any verification
documentation required to validate a
student’s title IV eligibility;. This waiver
expires at the end of the payment period
that begins after the date on which the
Federally-declared national emergency
related to COVID–19 is rescinded.
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Cash Management Regulations (34 CFR
668.161 and 162)
Payment Methods
Under § 668.161(a)(2)(iv), an IHE may
disburse title IV, HEA program funds by
electronic funds transfer (EFT) if the
EFT is an automated clearing house
transaction, meaning that the EFT must
be a direct deposit transaction. The
Secretary waives the requirement that
the EFT be a direct deposit transaction
to allow IHEs and third-party servicers
to use any type of EFT under the
Treasury Department regulations in 31
CFR 208.2, including person-to-person
payment methods such as Zelle and
PayPal, or to enable an IHE to use a
student’s debit card number to transfer
a title IV credit balance to the student’s
checking account using an original
credit transaction. This waiver expires
at the end of the payment period that
begins after the date on which the
Federally-declared national emergency
related to COVID–19 is rescinded.
An IHE or third-party servicer must
ensure that any payment method used
complies with the disbursement
requirements in the Cash Management
regulations, and that the institution
notifies its auditor of the alternative
method used as part of its annual
compliance audit for any fiscal year that
alternative is used. We note that
regardless of whether any audit
deficiencies are identified, the IHE or
servicer must disclose in the
compliance audit the alternative method
used and how it was used to make title
IV disbursements.
Credit Balances
For IHEs that are on HCM1 under
§ 668.162(d)(1), the Secretary is
temporarily modifying the cash
management requirements to permit
those institutions to submit a request for
funds without first paying the credit
balances due to the students for whom
those funds were requested. For
requests submitted between March 2020
and the end of the payment period that
begins after the date on which the
Federally-declared national emergency
related to COVID–19 is rescinded, IHEs
must pay the credit balances no later
than three calendar days after receiving
the funds for those students.
Cohort Default Rate (CDR) Appeals (34
CFR 668.204)
Section 668.204(b) provides that an
IHE may challenge the accuracy of the
data included on the loan record detail
report by sending a challenge to the
relevant data manager, or data
managers, within 45 days after receiving
the data.
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79861
On February 24, 2020, the Department
posted an Electronic Announcement
that draft CDRs for FY 2017 had been
distributed to institutions and that
included information about the process
for appealing those draft rates.
In recognition that IHEs have
encountered many difficulties and
interruptions in day-to-day operations
during the COVID–19 pandemic, the
Secretary extended to June 30, 2020, the
deadline for IHEs to appeal the draft
CDRs that were distributed on or about
February 24, 2020.
Deadline for Submission of Fiscal
Operations Report and Application To
Participate (34 CFR 673.7)
The Secretary extended until
November 1, 2020, the October 1, 2020,
deadline established in the Federal
Register on January 3, 2020 (85 FR 303)
for submission of the 2020–2021 Fiscal
Operations Report and Application to
Participate (FISAP).
Federal Work–Study (34 CFR 673.7)
The Secretary is waiving the Federal
Work-Study (FWS) community service
requirements in § 675.18(g) for all FWSparticipating schools for at least the
2019–20 and 2020–21 award years.
Schools do not need to apply for the
waiver for either award year. The
Department will administratively grant
waivers to all schools. This waiver
expires at the end of the award year that
begins after the date on which the
Federally-declared national emergency
related to COVID–19 is rescinded.
Perkins Loans (34 CFR 674.2(b))
Under sections 428F(b) and 464(h)(2)
of the HEA and under the definition of
‘‘satisfactory repayment arrangement’’, a
defaulted Perkins Loan borrower may
make six consecutive, on-time,
voluntary, full, monthly payments to
reestablish eligibility for title IV Federal
student financial assistance. To assist
Perkins Loan borrowers who are
affected by the COVID–19 pandemic,
the Secretary is waiving, through
December 31, 2020, the statutory and
regulatory provisions that require the
borrower to make consecutive payments
to reestablish eligibility. Loan holders
are encouraged not to treat any payment
missed during the time that a borrower
is an affected individual in this category
as an interruption in the six
consecutive, on-time, voluntary, full,
monthly payments required for
reestablishing title IV eligibility. If there
is an arrangement or agreement in place
between the borrower and loan holder
and the borrower makes a payment
during this period, the loan holder must
treat the payment as an eligible payment
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Federal Register / Vol. 85, No. 239 / Friday, December 11, 2020 / Rules and Regulations
in the required series of payments even
if the borrower did not make additional
payments during this period. At the
conclusion of this waiver period, the
required sequence of qualifying
payments may resume at the point they
were discontinued because of the
borrower’s status as an affected
individual. The Secretary will apply the
waivers described in this paragraph to
loans held by the Department.
Loan Rehabilitation (34 CFR 674.39)
Federal Perkins Loan borrowers must
make nine consecutive, on-time
monthly payments to rehabilitate a
defaulted Federal Perkins Loan in
accordance with § 464(h)(1)(A) of the
HEA and § 674.39. To assist title IV
borrowers who are affected by the
COVID–19 pandemic, the Secretary is
waiving, through December 31, 2020,
the statutory and regulatory loan
rehabilitation requirements that eligible
payments must be made over no more
than 10 consecutive months, as follows.
Loan holders other than the Department
are encouraged to treat any payment
missed during the time that a borrower
is an affected individual in this category
as a payment that counts toward a
rehabilitation agreement. If there is an
arrangement or agreement in place
between the borrower and loan holder
and the borrower makes a payment or
payments during this period, the loan
holder must treat the payment as an
eligible payment in the required series
of payments. When the borrower is no
longer an affected individual in this
category, the required sequence of
qualifying payments may resume at the
point they were discontinued because of
the borrower’s status as an affected
individual to successfully rehabilitate a
Perkins Loan. The Department will
apply the waivers described in this
paragraph to loans held by the
Department.
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Repayment of a Loan (34 CFR 682.209)
Section 682.209 provides that interest
accrues on an FFEL loan during the
interval between scheduled payments.
On March 13, 2020, the President
announced 3 that the interest on all
FFEL loans held by the Department and
on all Direct Loans would be waived
amid the coronavirus outbreak. On
March 20, 2020, the Secretary
announced 4 that interest rates for such
loans would be set to zero percent (0%)
3 /www.whitehouse.gov/presidential-actions/
memorandum-continued-student-loan-paymentrelief-covid-19-pandemic/.
4 www.ed.gov/news/press-releases/deliveringpresident-trumps-promise-secretary-devossuspends-federal-student-loan-payments-waivesinterest-during-national-emergency.
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for a period of at least 60 days, during
which time borrowers would have the
option to suspend their monthly loan
payments. On March 27th, 2020, the
CARES Act was signed into law and
provided that interest would not be
charged on Perkins, HEAL, FFEL, or
Direct Loans held by the Department
through September 30, 2020. Following
the President’s Memorandum of August
8, 2020, the Secretary is further
extending until December 31, 2020, in
accordance with the prior
announcement, the waivers of the
regulatory provisions in §§ 682.202 and
682.209 that require that interest be
charged on FFEL loans held by the
Department from March 13, 2020,
through March 27, 2020, and from
October 1, 2020 through December 31,
2020. The affected loans include FFEL
Program Loans that the Department
acquired pursuant to the Ensuring
Continued Access to Student Loans Act
of 2008 (ECASLA), through the
assignment of defaulted loans under
§ 682.409, and rehabilitated loans for
which a guaranty agency could not
secure a purchaser and assigned to the
Department under § 682.405(a)(2)(ii).
This does not apply to defaulted FFEL
Program Loans for which a guaranty
agency has paid a claim to the FFEL
Program lender and on which the
guaranty agency is pursuing the
borrower for collection. However, the
guaranty agencies may voluntarily
provide interest or payment waivers, for
the duration of the COVID–19 national
emergency, to borrowers of loans on
which collection activity continues.
Obligation To Repay (34 CFR 685.207)
Section 685.207 provides that a
borrower is required to pay any interest
not subsidized by the Secretary unless
the borrower is relieved of the
obligation to repay. On March 13, 2020,
the President announced that the
interest on all student loans held by the
Department would be waived amid the
coronavirus outbreak. On March 20,
2020, the Secretary announced that
interest rates for such loans would be
set to zero percent for a period of at least
60 days, during which time borrowers
would have the option to suspend their
monthly loan payments. On March 27th,
2020, the CARES Act was signed into
law and extended this same benefit
through September 30, 2020. The period
of this benefit was further extended to
December 31, 2020 by the President’s
Memorandum of August 8, 2020.
Accordingly, Direct Loans are
automatically placed in an
administrative forbearance status that is
currently scheduled to be in effect from
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March 13, 2020, through December 31,
2020.
Borrower Defense to Repayment (34 CFR
685.206 & 685.222)
When the Department expanded the
utilization of the Borrower Defense to
Repayment (BD) provision to provide
potential loan forgiveness to borrowers
who had enrolled in certain programs,
during certain periods of time, it offered
to review BD applications submitted by
students who had FFEL or Perkins
loans, and other loans that were not
Direct Loans (non-Direct Loans), and
notify the borrower of their eligibility
for full or partial loan relief in the event
that such students elected to consolidate
those loans into a Direct Consolidation
Loan. If the Department determined that
the borrower had successfully
established a defense to repayment, the
borrower could apply for a Direct
Consolidation Loan to receive the
discharge. On July 1, 2020, new
regulations regarding BD went into
effect. In the months prior to July 1,
2020, BD applicants were not
specifically notified that they would
need to take action to consolidate the
non-Direct loans included in their
borrower defense applications into a
Direct Consolidation Loan prior to July
1, 2020, to ensure that the Direct
Consolidation Loan would be
adjudicated under the 2016 BD
regulations, which includes the
standards under which the Department
would make the determination of
eligibility for BD relief on FFEL or
Perkins loans, or other non-Direct
Loans, in the event that the borrower
chose to consolidate his or her eligible
loans into a Direct Consolidation Loan.
Applications for relief on Direct
Consolidation Loans that include FFEL
or Perkins loans originally included in
BD applications received by the
Department prior to July 1, 2020, will
therefore be adjudicated under the
standards for Direct Loans, including
Direct Consolidation loans, disbursed
between July 1, 2017, and July 1, 2020.
Recertification of Income-Driven
Repayment Plans (34 CFR 685.209 &
685.221)
Sections 685.209 and 685.221 provide
that a borrower participating in an
income-driven repayment plan is
required to provide documentation,
acceptable to the Secretary, that enables
the annual calculation of the borrower’s
payment amount for each year that the
borrower remains on the plan. The
Secretary is waiving §§ 685.209(a)(5)(i)
and 685.221(e)(1) for one calendar year
from the date on which a borrower
would have been required to provide
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recertification documentation in 2020.
Borrowers will be notified by their loan
servicer of their new recertification date,
in advance of the deadline on which
such documentation is required.
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Capitalization of Interest Under the
Income-Contingent Repayment Plan (34
CFR 685.209)
Section 685.209(a)(2)(iv)(A) provides
that interest is capitalized on a
borrower’s loans that are being repaid
under the income-contingent repayment
plan when a borrower is determined to
no longer have a partial financial
hardship or at the time a borrower
chooses to leave the Pay As You Earn
repayment plan. As noted above, all
Direct Loans in repayment or default
have been placed in an administrative
forbearance status and interest has been
suspended. If the borrower’s loan
payments were current before the
administrative forbearance period
began, interest accrued prior to March
13, 2020, will not capitalize at the end
of the coronavirus-related
administrative forbearance period.
However, if the borrower’s loans were
in the type of deferment or forbearance
in which interest would normally
capitalize before the coronavirus-related
administrative forbearance period
began, interest accrued prior to March
13, 2020, will capitalize when the
borrower’s original deferment or
forbearance ends, or on January 1, 2021,
whichever is later.
For borrowers whose loans were in a
grace period before the coronavirusrelated administrative forbearance
period began, any outstanding or unpaid
interest on a borrower’s account will
capitalize as it usually does when the
loan(s) enter repayment.
This waiver expires on December 31,
2020.
Academic Calendar Flexibility (34 CFR
690.63)
Section 690.63(a)(3) requires, as a
condition of calculating Pell grant
eligibility under Formula 1,5 that
students not be allowed ‘‘to be enrolled
simultaneously in overlapping terms
. . .’’. The Secretary is waiving this
requirement for academic years that
include the latter of December 31, 2020,
or the last date of the COVID–19
national emergency. All standard terms
will be permitted to overlap with an
adjacent term without the program
being considered non-term.
Additionally, a standard semester or
trimester may consist of as few as 13
weeks of instructional time and a
5 https://ifap.ed.gov/sites/default/files/
attachments/2019-09/1920FSAHbkVol3Master.pdf.
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standard quarter as few as nine weeks
of instructional time without the
program being considered a nonstandard term program.
The Secretary is waiving the
provisions of § 690.63(a)(1)(ii)(B)(3) and
permitting IHEs to treat as standard term
any academic calendar comprised of
semesters, trimesters, or quarters that
overlap. For all academic years that
include the later of December 31, 2020,
or the end date for the COVID–19
Federally declared emergency, the
existence of overlapping standard terms
will not result in a program being
considered non-term.
Section 3513 of the CARES Act
Section 3513 of the CARES Act
directs the Secretary to: (1) Suspend all
payments due, (2) cease interest accrual,
and (3) suspend involuntary collections
for loans made under part D and part B
(that are held by the Department) of title
IV of the HEA through September 30,
2020. The section also directs the
Secretary to deem each month for which
a loan payment was suspended as if the
borrower of the loan had made a
payment for the purpose of any loan
forgiveness program or loan
rehabilitation program authorized under
part D or B for which the borrower
would have otherwise qualified. Lastly,
this section directs the Secretary to
ensure that, for the purpose of reporting
information about the loan to a
consumer reporting agency, any
payment that has been suspended is
treated as if it were a regularly
scheduled payment made by a borrower.
On August 8, 2020, the President
issued a memorandum directing the
Secretary to continue to waive interest
and payments on such loans until
December 31, 2020. Therefore, in
accordance with the prior
announcement, the Secretary is using
her authority under the HEROES Act to
modify the terms of the benefits
provided under section 3513 of the
CARES Act such that they will continue
to be provided to borrowers until
December 31, 2020.
Accessible Format: On request to Mr.
Jean-Didier Gaina, by telephone: (202)
502–7526 or by email: JeanDidier.Gaina@ed.gov, individuals with
disabilities can obtain this document in
an accessible format (such as braille,
large print, audiotape, or compact disc),
to the extent reasonably practicable.
Electronic Access to This Document:
The official version of this document is
the document published in the Federal
Register. You may access the official
edition of the Federal Register and the
Code of Federal Regulations at
www.govinfo.gov. At this site you can
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79863
view this document, as well as all other
documents of this Department
published in the Federal Register, in
text or 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.
(Catalog of Federal Domestic Assistance
Numbers: 84.007 Federal Supplemental
Educational Opportunity Grant Program;
84.032 Federal Family Education Loan
Program; 84.032 Federal PLUS Program;
84.033 Federal Work-Study Program; 84.038
Federal Perkins Loan Program; 84.063
Federal Pell Grant Program; and 84.268
William D. Ford Federal Direct Loan
Program.)
Program Authority: 20 U.S.C. 1071, 1082,
1087a, 1087aa, Part F–1.
Robert King,
Assistant Secretary for Postsecondary
Education.
[FR Doc. 2020–27042 Filed 12–10–20; 8:45 am]
BILLING CODE 4000–01–P
ENVIRONMENTAL PROTECTION
AGENCY
40 CFR Part 82
[EPA–HQ–OAR–2003–0118; FRL–10016–19–
OAR]
RIN 2060–AG12
Protection of Stratospheric Ozone:
Determination 36 for Significant New
Alternatives Policy Program
Environmental Protection
Agency (EPA).
ACTION: Determination of acceptability.
AGENCY:
This determination of
acceptability expands the list of
acceptable substitutes pursuant to the
U.S. Environmental Protection Agency’s
(EPA) Significant New Alternatives
Policy (SNAP) program. This action lists
as acceptable additional substitutes for
use in the refrigeration and air
conditioning, foam blowing, and fire
suppression sectors.
DATES: This determination is applicable
on December 11, 2020.
ADDRESSES: The EPA established a
docket for this action under Docket ID
No. EPA–HQ–OAR–2003–0118
(continuation of Air Docket A–91–42).
All electronic documents in the docket
SUMMARY:
E:\FR\FM\11DER1.SGM
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Agencies
[Federal Register Volume 85, Number 239 (Friday, December 11, 2020)]
[Rules and Regulations]
[Pages 79856-79863]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-27042]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF EDUCATION
34 CFR parts 600, 602, 668, 673, 674, 682, and 685
Federal Student Aid Programs (Student Assistance General
Provisions, Federal Perkins Loan Program, William D. Ford Federal
Direct Loan Program, and Federal-Work Study Programs)
AGENCY: Office of Postsecondary Education, Department of Education.
ACTION: Updated waivers and modifications of statutory and regulatory
provisions.
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SUMMARY: The Secretary is issuing updated waivers and modifications of
statutory and regulatory provisions governing the Federal student
financial aid programs under the authority of the Higher Education
Relief Opportunities for Students Act of 2003 (HEROES Act or Act). The
HEROES Act requires the Secretary to publish, in a document in the
Federal Register, the waivers or modifications of statutory or
regulatory provisions applicable to the student financial assistance
programs under title IV of the Higher Education Act of 1965, as amended
(HEA), to assist individuals who are performing qualifying military
service, and individuals who are affected by a disaster, war, or other
military operation or national emergency, as described in the
SUPPLEMENTARY INFORMATION section of this document. On March 13, 2020,
President Trump declared a national emergency based on the COVID-19
outbreak. (Proclamation on Declaring a National Emergency Concerning
the Novel Coronavirus Disease (COVID-19) Outbreak, available at https://www.whitehouse.gov/presidential-actions/proclamation-declaring-national-emergency-concerning-novel-coronavirus-disease-covid-19-
outbreak/).
DATES: Effective December 11, 2020. The waivers and modifications in
this document expire as noted within each of the provisions below,
unless extended by the Secretary in a document published in the Federal
Register.
FOR FURTHER INFORMATION CONTACT: Barbara Hoblitzell, by telephone:
(202) 453-7583 or by email: [email protected], or Gregory
Martin, by telephone: (202) 453-7535 or by email:
[email protected].
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.
SUPPLEMENTARY INFORMATION:
The Secretary is issuing these waivers and modifications under the
authority of the HEROES Act, as codified at 20 U.S.C. 1098bb(a)(2),
which authorizes the Secretary to waive or modify any statutory or
regulatory provision applicable to the Federal student financial
assistance programs under title IV of the HEA, 20 U.S.C. 1070 et seq.,
as the Secretary deems necessary in connection with a war or other
military operation or national emergency to affected individuals who
are recipients of Federal student financial assistance under title IV
of the HEA, institutions of higher education (IHEs), eligible lenders,
guaranty agencies, and other entities participating in the Federal
student assistance programs under title IV of the HEA that are located
in areas that are declared disaster areas by any Federal, State, or
local official in connection with a national emergency, or whose
operations are significantly affected by such a disaster. These
entities may be granted temporary relief from requirements that are
rendered infeasible or unreasonable by a national emergency, including
due diligence requirements and reporting deadlines.
In 20 U.S.C. 1098bb(b)(1), the HEROES Act further provides that
section 437 of the General Education Provisions Act (20 U.S.C. 1232)
and section 553 of the Administrative Procedure Act (5 U.S.C. 553) do
not apply to the contents of this document.
[[Page 79857]]
The terms ``institution of higher education'' and ``institution of
higher education for purposes of title IV programs'' (IHE) used in this
document are defined in sections 101 and 102 of the HEA.
In 20 U.S.C. 1098ee, the HEROES Act provides definitions critical
to determining whether a person is an ``affected individual'' under the
Act and, if so, which waivers and modifications apply to the affected
individual. However, because these definitions do not include the
specific circumstances under which these waivers and modifications are
provided under the HEROES Act, we provide these definitions below.
For purposes of this document, ``affected individual'' means a
student enrolled in a postsecondary institution. An ``affected
borrower'' is one whose Federal student loans provided under title IV
are in repayment. These definitions are in keeping with 20 U.S.C.
1098bb(a)(2) that establishes that statutory and regulatory provisions
can be waived or modified ``as necessary to ensure that recipients of
student financial assistance under title IV of the [HEA{time} who are
affected individuals are not placed in a worse position financially in
relation to that financial assistance because of their status as
affected individuals''. The statute also provides that administrative
requirements placed on affected individuals who are recipients of
student financial assistance are minimized, to the extent possible
without impairing the integrity of the student financial assistance
programs, to ease the burden on such students and avoid inadvertent,
technical violations, or defaults.
In accordance with the HEROES Act, the Secretary is providing the
following waivers and modifications of statutory and regulatory
provisions applicable to the student assistance general provisions and
student financial assistance programs under title IV of the HEA that
the Secretary believes are necessary to ensure that, during and in
response to the COVID-19 pandemic--
Accrediting agencies and associations are permitted to
conduct virtual site visits of institutions or programs currently under
review, scheduled for initial or renewal of accreditation, or in a
show-cause or probationary status;
IHEs may ensure continuity of instruction and learning by
employing distance education to protect the health of their students,
faculty, and staff;
IHEs that are undergoing a change of ownership are
provided additional time to gather the records, data, financial
information, and approvals necessary to support their change of
ownership application, and their temporary program participation
agreements are extended while the application is pending;
Foreign graduate medical schools that participate in the
Federal Direct Loan Program are not required to obtain and report test
results from the Medical College Admission Test (MCAT) from applicants
during admission years in which the COVID-19 national emergency is in
effect;
Entities not submitting single audits in accordance with
the audit requirements of 2 CFR 200, subpart F, are provided an
additional six months to submit their annual compliance and financial
statement audits;
IHEs that resume offering educational programs after
temporarily closing or suspending their educational programs due to
COVID-19 are not considered to have ended their participation in the
title IV, HEA programs;
IHEs that offer existing short-term programs that qualify
for Federal Direct Loans, or began offering a short-term program prior
to the COVID emergency, are given some flexibility for programs
affected by COVID-19;
IHEs are provided additional flexibility to approve leaves
of absence for students whose coursework is suspended due to the COVID-
19 pandemic;
IHEs are provided additional time to comply with deadlines
for campus security, fire safety, and equity in athletics disclosures;
IHEs are permitted to waive the requirement for a parental
signature in the event that it cannot be obtained, or accept a document
signed and photographed and sent by email or text message attachment,
on any verification documentation required to validate a student's
title IV eligibility;
IHEs that participate in the Federal student financial aid
programs under the heightened cash monitoring one (HCM1) status are
provided flexibility to pay student credit balances after drawing down
title IV funds;
IHEs are provided alternative methods for disbursing title
IV, HEA credit balance funds to students;
IHEs that were experiencing challenges accessing data and
preparing their cohort default rate (CDR) appeals during the national
emergency were permitted to submit appeals to the draft fiscal year
(FY) 2017 CDRs on or before June 30, 2020;
IHEs are provided additional time to complete and submit
their Fiscal Operations Report and Application to Participate (FISAP);
IHEs that participate in the Federal Work-Study (FWS)
programs are not subject to the FWS community service requirements
during the national emergency;
Perkins Loan and HEAL borrowers whose loans are held by
the Department of Education (Department) are afforded the same benefits
extended to Direct Loan borrowers in the Coronavirus Aid, Relief, and
Economic Security (CARES) Act; \1\
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\1\ https://www.congress.gov/bill/116th-congress/house-bill/748/text.
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Borrowers with loans under the Federal Family Education
Loan (FFEL), Federal Perkins Loan, HEAL, and Direct Loan programs that
are held by the Department, did not accrue interest on those loans from
March 13, 2020 to March 27, 2020. Borrowers were also permitted to
suspend payment on their loans without any penalties during this
period. The automatic suspension of payment and the application of a
zero percent interest rate on loans held by the Department was extended
to October 1, 2020, under the CARES Act. Those benefits were further
extended through December 31, 2020, by the President through the
Presidential Memorandum issued on August 8, 2020; \2\
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\2\ https://www.whitehouse.gov/presidential-actions/memorandum-continued-student-loan-payment-relief-covid-19-pandemic/.
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Borrowers who, prior to July 1, 2020, submitted an
application for borrower defense to repayment (BD) relief that included
a FFEL or Perkins loan and who would need to consolidate those loans
into a Direct Consolidation Loan (DCL) to receive BD relief will have
their eligibility for relief be adjudicated under the standards for
Direct Loans disbursed between July 1, 2017, and July 1, 2020.
Borrowers participating in income-driven repayment plans
are not required to recertify their income or family size until after
the administrative forbearance period extended by the August 8, 2020,
Presidential Memorandum expires, and will be notified of a new
certification deadline thereafter;
Borrowers participating in income-contingent repayment
plans who do not make payments during the COVID-19 emergency will
generally not have any interest capitalized upon the conclusion of the
COVID-19-related administrative forbearance period; and
IHEs are provided academic calendar flexibility to address
scheduling complications that have
[[Page 79858]]
arisen as a result of the COVID-19 national emergency.
Prior waivers granted by the Secretary under this Act remain in
effect for affected individuals, as defined in those waivers.
Statutory Waiver Granted Under the Heroes Act in Response to the Covid-
19 Pandemic
Recognition of Accrediting Agency or Association (HEA Sec. 496, 20
U.S.C. 1099b)
HEA Sec. 496(c)(1) (20 U.S.C. 1099b(c)(1)) provides that a
recognized accrediting agency or association must perform, at regularly
established intervals, on-site inspections and reviews of IHEs (which
may include unannounced site visits) with particular focus on
educational quality and program effectiveness, and ensures that
accreditation team members are well-trained and knowledgeable with
respect to their responsibilities, including those regarding distance
education.
HEA Sec. 496(c)(1) (20 U.S.C. 1099b(c)(5)) provides that an
accrediting agency or association must agree to conduct, as soon as
practicable, but within a period of not more than six months of the
establishment of a new branch campus or a change of ownership of an
IHE, an on-site visit of that branch campus or of the institution after
a change of ownership.
The Secretary is waiving these requirements, for the duration of
the national emergency declaration and 180 days following the date on
which the COVID-19 national emergency declaration is rescinded, to
provide accrediting agencies and associations the flexibility to
develop, adopt, modify, and implement temporary virtual site visit
policies. Virtual site visits should rely on an engaged, interactive
format (e.g., telephonic meetings, video conference calls), rather than
solely relying upon document reviews or exchanges of emails.
However, if a site visit within six months after a change of
ownership is conducted virtually, a follow up in-person visit must be
conducted within 90 days following the date on which the COVID-19
national emergency declaration is rescinded.
Regulatory Waivers Granted Under the Heroes Act in Response to the
Covid-19 Pandemic Distance Education (34 CFR 600.9, 602.16, 602.18,
602.19, and 602.27)
Section 600.9(c) requires IHEs to obtain State authorization to
provide postsecondary educational programs through distance education.
The Secretary is waiving this requirement for payment periods that
overlap March 5, 2020, or begin after March 5, 2020, through the end of
the payment period that begins after the date on which the Federally-
declared national emergency related to COVID-19 is rescinded.
This waiver applies only to the Department's requirements; IHEs
will need to determine whether the distance education being provided
meets the applicable State requirements.
The Secretary is providing this waiver so that IHEs may provide
programs using distance education to accommodate students without
requiring such institutions to obtain Department approval to provide
the program through distance education. If an IHE chooses to continue
offering a program or use distance education in a manner requiring the
Department's approval after the waiver period ends, it must obtain
approval under the Department's normal process.
Section 602.16 provides that an accrediting agency or association
that has within its scope of recognition the evaluation of the quality
of institutions or programs offering distance education, correspondence
courses, or direct assessment education, must have standards that
effectively address the quality of an institution's distance education,
correspondence courses, or direct assessment education. The Secretary
is waiving, for the duration of the national emergency declaration and
180 days following the date on which the COVID-19 national emergency
declaration is rescinded, this requirement so that accreditors may
waive their distance education review requirements for institutions
working to accommodate students whose enrollment is otherwise
interrupted as a result of COVID-19. This waiver is limited to distance
learning opportunities developed specifically for the purpose of
serving students who were already in attendance, and whose attendance
was interrupted by COVID-19.
Section 602.16(a)(2)(ii) limits to five years the duration of
preaccreditation status that can be granted by an accrediting agency
before a final determination can be made. The Secretary is waiving, for
the duration of the national emergency declaration and 180 days
following the date on which the COVID-19 national emergency declaration
is rescinded, this requirement to enable accrediting agencies
sufficient opportunity to complete their assessment of a preaccredited
institution for a final accreditation determination.
Section 602.19(a) requires accrediting agencies to reevaluate, at
regularly established intervals, the institutions or programs it has
accredited or preaccredited. The Secretary is waiving this requirement,
for the duration of the national emergency declaration and 180 days
following the date on which the COVID-19 national emergency declaration
is rescinded, to provide accrediting agencies the flexibility to
develop, adopt, modify, and implement temporary virtual site visit
policies. With the approval of the accrediting agency's board, or other
decision-making body, during a telephonic or video conference meeting,
accrediting agencies may adopt or modify temporary virtual site visit
policies without a public comment period. Because these policies would
be temporary and arise from the unique set of circumstances and
challenges presented by the COVID-19 pandemic, this approval would not
require a vote of the full membership of the accrediting agency. Should
an accrediting agency desire to make a temporary virtual site visit
policy or policy modification permanent after the COVID-19 national
emergency declaration is rescinded, it must adhere to applicable
statutory and regulatory requirements.
The Secretary is also waiving the requirements under Sec.
602.21(c), for the duration of the national emergency declaration and
180 days following the date on which the COVID-19 national emergency
declaration is rescinded, to enable accrediting agencies to expedite
the development of temporary standards to approve distance learning
programs or courses, including agencies that did not previously have
distance learning in their scope and for institutions that did not
previously offer distance learning opportunities. However, in
accrediting clock-hour programs for which licensure boards approved the
use of distance learning to meet the ``clock-hour of instruction''
requirements, agencies must continue to meet the requirements under
Sec. 602.21(c).
On September 2, 2020, the Secretary amended the Department's
regulations to permanently permit the use of synchronous and
asynchronous distance learning in the delivery of clock-hour programs
by distance learning if the relevant licensure body will accept
distance learning hours to meet licensure requirements. Institutions
are permitted to implement this new regulation immediately; otherwise,
the new regulation goes into effect on July 1, 2021.
The Secretary is also waiving the requirement in Sec. 602.27(a)(4)
that an
[[Page 79859]]
accrediting agency must expand its scope of recognition by notifying
the Secretary prior to accrediting programs and institutions that
provide education through distance learning. During the COVID-19
national emergency, an accrediting agency need not expand its scope of
recognition to include distance learning in order to approve its member
programs or institutions to offer distance learning.
Notice and Application Procedures for Establishing, Reestablishing,
Maintaining, or Expanding Institutional Eligibility and Certification
(34 CFR 600.20)
Section 600.20(h)(3)(iii) provides that the Secretary will extend
an institution's provisional Program Participation Agreement (PPA) on a
month-to-month basis after the expiration date if, prior to that
expiration date, the institution provides the Secretary with approval
of the change of ownership from the institution's accrediting agency.
In keeping with the waivers provided in Sec. 600.31, the Secretary
is waiving, through the end of the payment period that begins after the
date on which the Federally-declared national emergency related to
COVID-19 is rescinded, the requirement to provide approval of the
change of ownership from the institution's accrediting agency within
the time period set forth in 600.20(h)(3)(iii).
Institutional Eligibility--Change of Ownership (34 CFR 600.31)
The Secretary is waiving Sec. 600.31(a)(2) and providing an
additional six months for IHEs to provide the approvals from the
institution's accrediting agency and State, and the same-day balance
sheet or statement of financial position prepared under required
financial standards pursuant to Sec. 600.20(h)(3), that is ordinarily
due by the end of the month following the change of ownership. The
Secretary will accept unaudited financial statements for the IHE's and
new owner's most recently completed fiscal year within the time frame
established under Sec. 600.20(g)(1), provided that the submission
includes the engagement letters for the audited financial statements
under Sec. 600.20(g)(2) to be completed for submission to the
Department the earlier of six months after the change in ownership or
30 days after the date of the auditor's report with the financial
statements. This waiver is in effect for the duration of the national
emergency declaration and 180 days following the date on which the
COVID-19 national emergency declaration is rescinded.
Medical College Admissions Test (MCAT) (34 CFR 600.55)
Section 600.55(c) requires a foreign graduate medical school having
a post-baccalaureate or equivalent medical program that participates in
the Federal Direct Loan program to require students accepted for
admission who are U.S. citizens, nationals, or permanent residents to
have taken the MCAT and to have reported their scores to the foreign
graduate medical school.
The Secretary is waiving, for the duration of admissions years in
which the COVID-19 national emergency declaration is in effect, the
requirement that to participate in the Federal Direct Loan program, a
foreign medical school must require students to take the MCAT.
Application of Standards in Reaching an Accrediting Decision (34 CFR
602.17)
As a result of travel restrictions, State-mandated campus closures,
and administrative decisions to move instruction to distance learning,
accrediting agencies may need to perform required site visits
virtually. Therefore, beginning on March 13, 2020, for the duration of
the national emergency declaration and 180 days following the date on
which the COVID-19 national emergency declaration is rescinded, the
Secretary is waiving the provisions of Sec. 602.17(c) that require
accrediting agencies to conduct at least one on-site review of the
institution or program during which it obtains sufficient information
to determine if the institution or program complies with the agency's
standards. Accrediting agencies may conduct required site visits for
monitoring performance virtually at regularly scheduled intervals or
renewal of accreditation.
The Secretary continues to require that in the case such a site
visit is associated with making an award of accreditation or
preaccreditation, the agency must perform a limited in-person site
visit as soon as practicable. This limited in-person site visit need
not replicate the virtual visit, or elements thereof, and need not
include the full team that participated in the virtual site visit, but
could be conducted through a limited visit performed by agency staff or
a single site visitor.
Virtual site visits should rely on an engaged, interactive format
(e.g., telephonic meetings, video conference calls), rather than solely
relying upon document reviews or exchanges of emails.
Substantive Changes and Other Reporting Requirements (34 CFR 602.22)
Section 602.22(d) requires accrediting agencies to have an
effective mechanism for conducting, at reasonable intervals, visits to
a representative sample of additional locations they have approved.
Section 602.22(f)(1) requires an accrediting agency to conduct a
site visit, within six months, to each additional location an
institution establishes (when the total number of additional locations,
where at least 50 percent of an educational program is offered, is
three or fewer and the locations are not considered to be branch
campuses).
Section 602.22(f)(2) requires an accrediting agency to have a
mechanism for conducting, at reasonable intervals, visits to a
representative sample of additional locations an institution
establishes (when the total number of additional locations, where at
least 50 percent of an educational program is offered, is more than
three and the locations are not considered to be branch campuses).
The Secretary is waiving these requirements for the duration of the
national emergency declaration and 180 days following the date on which
the COVID-19 national emergency declaration is rescinded and permitting
accrediting agencies to conduct these visits virtually. Virtual site
visits should rely on an engaged, interactive format (e.g., telephonic
meetings, video conference calls), rather than solely relying upon
document reviews or exchanges of emails.
Additional Procedures Certain Institutional Agencies Must Have (34 CFR
602.24)
Section 602.24(b) provides that an accrediting agency must
undertake a site visit to a new branch campus, or following a change of
ownership or control, as soon as practicable, but no later than six
months, after the establishment of that campus or the change of
ownership or control.
The Secretary is waiving these requirements, for the duration of
the national emergency declaration and 180 days following the date on
which the COVID-19 national emergency declaration is rescinded, to
permit accrediting agencies to conduct these visits virtually. Virtual
site visits should rely on an engaged, interactive format (e.g.,
telephonic meetings, video conference calls), rather than solely
relying upon document reviews or exchanges of emails.
However, if a site visit within six months after a change of
ownership is
[[Page 79860]]
conducted virtually, a follow up in-person visit must be conducted
within 90 days following the date on which the COVID-19 national
emergency declaration is rescinded.
Program Eligibility (34 CFR 668.8)
Short-Term Programs
Sections 668.8(d)(3) and (e) provide that proprietary IHEs and
postsecondary vocational institutions that offer short-term programs
must demonstrate in their annual compliance audits that students
enrolled in the programs had completion and job placement rates of at
least 70 percent before those programs qualify, or continue to qualify,
as eligible programs for Federal Direct Loans (the ``70/70 qualifying
requirements'').
The Secretary waives the 70/70 qualifying requirements for any
award year in which the COVID-19 national emergency declaration was in
place for at least one day during the award year. Institutions must
continue to report completion and placement rates for short-term
programs for such award years in compliance audits, but the programs
will remain eligible even if they do not meet the 70/70 requirements.
Short-term programs will once again be required to meet the 70/70
qualifying requirements for any future award year in which the COVID-19
national emergency declaration is not in effect.
New Distance Education Programs
Section 668.8(m) provides that an otherwise eligible program that
is offered in whole or in part through telecommunications is eligible
for title IV, HEA program purposes if the program is offered by an
institution, other than a foreign institution, that has been evaluated
and is accredited for its effective delivery of distance education
programs by an accrediting agency or association that is recognized by
the Secretary under subpart 2 of part H of the HEA, and has
accreditation of distance education within the scope of its
recognition.
In recognition that many postsecondary institutions needed to
implement distance learning solutions to continue educating students in
response to campus interruptions or the unexpected return of students
from travel abroad experiences, the Secretary is waiving, through the
end of the payment period that begins after the date on which the
Federally-declared national emergency related to COVID-19 is rescinded,
the requirement that these IHEs must have obtained accreditation to
offer distance education programs.
Approved Leaves of Absence (34 CFR 668.22)
Under Sec. 668.22(d), an IHE is not permitted to place students on
a leave of absence during the suspension of coursework, including
clinicals or internships/externships. However, if the coursework
suspension results from a COVID-19 related circumstance, IHEs may grant
an approved leave of absence to affected students. Approved leaves of
absence granted due to COVID-19-related concerns or limitations are
considered to fall under the exception provided in Sec.
668.22(d)(3)(iii)(B) permitting, in the case of unforeseen
circumstances, an IHE to grant such leave prior to the student's
request. A written request for leave of absence for that period must
subsequently be obtained from the student. These flexibilities apply to
all leaves of absence granted through the end of the payment period
that begins after the date on which the Federally-declared national
emergency related to COVID-19 is rescinded.
Section 668.22(d)(1)(vi) provides that the maximum number of days
in an approved leave of absence, when added to the number of days in
all other approved leaves of absence, may not exceed 180 in any 12-
month period. The Secretary modifies this requirement and extends the
maximum number of days from 180 (in any 12-month period) to allow a
leave of absence to be extended to December 31, 2020.
Treatment of Direct Loan Funds if a Student Does Not Begin Attendance
(34 CFR 668.21(a)(2)(ii))
The Secretary is waiving the requirement in Sec. 668.21(a)(2)(ii)
that an institution notify the Direct Loan Servicer when a borrower who
has received a credit balance payment composed of Federal Direct Loan
funds will not or has not begun attendance, so that the servicer will
issue a final demand letter. Under this waiver, in such circumstances,
the institution should not notify the servicer. The amount of the
Direct Loan credit balance will be the borrower's responsibility to
repay under the terms of the promissory note. This waiver expires at
the end of the payment period that begins after the date on which the
Federally-declared national emergency related to COVID-19 is rescinded.
Annual Compliance and Financial Statement Audit Submission Deadlines
(34 CFR 668.23)
For IHEs and other entities subject to the Single Audit Act and the
implementing regulations at 2 CFR Subpart F that submit an audit under
the Single Audit Act, the Department will consider the audit submission
of the IHE or other entity timely if it is submitted to the Department
through eZ-Audit or as directed by the Department at the same time it
is timely submitted to the Federal Audit Clearing House under Office of
Management and Budget guidance M 20-26 for COVID-19 audit submissions
and any future extensions provided by the Office of Management and
Budget.
IHEs and other entities that do not submit audits under the Single
Audit Act are required under Sec. 668.23 to submit their annual
compliance audit and financial statements no later than six months
after the last day of their fiscal year. For any such audits that are
due to be submitted to the Department no later than March 1, 2020,
through December 31, 2020, or other periods specified by the Secretary,
the Secretary is extending the submission deadline up to an additional
six months t and other entities to provide more time for the IHE
auditors to complete those audits. For IHEs and other entities choosing
to submit their audits after the normal due date, the Department will
consider the audits to be submitted timely if they are submitted to eZ-
audit or as directed by the Department no later than 30 calendar days
after the date of the audit report. If date of the audit report is
prior to the date of this notice, IHEs and other entities have 30
calendar days from the date of this notice to submit their required
audits.
End of an Institution's Participation in the Title IV, HEA Programs (34
CFR 668.26(a)(1) and (2))
Section 668.26 provides that an IHE's participation in a title IV,
HEA program ends on the date that the IHE closes or stops providing
educational programs for a reason other than a normal vacation period
or a natural disaster that directly affects the IHE or the IHE's
students, or on the date it loses its institutional eligibility under
part 600. The Secretary is waiving this requirement in recognition that
some IHEs are unable to convert their programs to an alternative
instructional modality during the COVID-19 pandemic. IHEs that have
interrupted their on-campus instruction without converting to an
alternative instructional modality, either on-ground
[[Page 79861]]
or online, must resume instruction by the start of the institution's
scheduled payment period, as published in the institution's academic
calendar, one payment period after the payment period in which the
COVID-19 national emergency is lifted to continue their participation
in the title IV, HEA programs.
The Department retains the discretion to determine that an
institution has closed based on its assessment of the institution's
capacity to reopen at the end of the COVID-19 national emergency.
Campus Security, Fire Safety, and Equity in Athletics Disclosures (34
CFR 668.41)
The Secretary extends the October 1 deadline in Sec. 668.41(e)(1)
for IHEs to distribute their Annual Security Reports and Annual Fire
Safety Reports (required under Sec. 668.46(b) and Sec. 668.49(b),
respectively) to required recipients to December 31, 2020. Likewise,
the October 15 deadline established in Sec. 668.41(g)(1) for IHEs to
distribute their annual Equity in Athletics Disclosure Act (EADA)
disclosures (required under Sec. 668.47(c)) to required recipients is
extended to December 31, 2020.
Acceptable Documentation (34 CFR 668.57(b), (c), and (d))
Sections 668.57(b) and (c) require a statement signed by both the
applicant and one of the applicant's parents if the applicant is a
dependent student, or only the applicant if the applicant is an
independent student, to verify the number of family members in the
household and the number of family members enrolled in IHEs. Pursuant
to Sec. 668.57(d), an applicant may also be required to verify other
information specified in the annual Federal Register document that
announces the Free Application for Federal Student Aid (FAFSA)
information as well as the acceptable documentation for verifying that
FAFSA information. IHEs are permitted to waive the requirement for a
parental signature in the event that it cannot be obtained, or accept a
document signed and photographed and sent by email or text message
attachment, on any verification documentation required to validate a
student's title IV eligibility;. This waiver expires at the end of the
payment period that begins after the date on which the Federally-
declared national emergency related to COVID-19 is rescinded.
Cash Management Regulations (34 CFR 668.161 and 162)
Payment Methods
Under Sec. 668.161(a)(2)(iv), an IHE may disburse title IV, HEA
program funds by electronic funds transfer (EFT) if the EFT is an
automated clearing house transaction, meaning that the EFT must be a
direct deposit transaction. The Secretary waives the requirement that
the EFT be a direct deposit transaction to allow IHEs and third-party
servicers to use any type of EFT under the Treasury Department
regulations in 31 CFR 208.2, including person-to-person payment methods
such as Zelle and PayPal, or to enable an IHE to use a student's debit
card number to transfer a title IV credit balance to the student's
checking account using an original credit transaction. This waiver
expires at the end of the payment period that begins after the date on
which the Federally-declared national emergency related to COVID-19 is
rescinded.
An IHE or third-party servicer must ensure that any payment method
used complies with the disbursement requirements in the Cash Management
regulations, and that the institution notifies its auditor of the
alternative method used as part of its annual compliance audit for any
fiscal year that alternative is used. We note that regardless of
whether any audit deficiencies are identified, the IHE or servicer must
disclose in the compliance audit the alternative method used and how it
was used to make title IV disbursements.
Credit Balances
For IHEs that are on HCM1 under Sec. 668.162(d)(1), the Secretary
is temporarily modifying the cash management requirements to permit
those institutions to submit a request for funds without first paying
the credit balances due to the students for whom those funds were
requested. For requests submitted between March 2020 and the end of the
payment period that begins after the date on which the Federally-
declared national emergency related to COVID-19 is rescinded, IHEs must
pay the credit balances no later than three calendar days after
receiving the funds for those students.
Cohort Default Rate (CDR) Appeals (34 CFR 668.204)
Section 668.204(b) provides that an IHE may challenge the accuracy
of the data included on the loan record detail report by sending a
challenge to the relevant data manager, or data managers, within 45
days after receiving the data.
On February 24, 2020, the Department posted an Electronic
Announcement that draft CDRs for FY 2017 had been distributed to
institutions and that included information about the process for
appealing those draft rates.
In recognition that IHEs have encountered many difficulties and
interruptions in day-to-day operations during the COVID-19 pandemic,
the Secretary extended to June 30, 2020, the deadline for IHEs to
appeal the draft CDRs that were distributed on or about February 24,
2020.
Deadline for Submission of Fiscal Operations Report and Application To
Participate (34 CFR 673.7)
The Secretary extended until November 1, 2020, the October 1, 2020,
deadline established in the Federal Register on January 3, 2020 (85 FR
303) for submission of the 2020-2021 Fiscal Operations Report and
Application to Participate (FISAP).
Federal Work-Study (34 CFR 673.7)
The Secretary is waiving the Federal Work-Study (FWS) community
service requirements in Sec. 675.18(g) for all FWS-participating
schools for at least the 2019-20 and 2020-21 award years. Schools do
not need to apply for the waiver for either award year. The Department
will administratively grant waivers to all schools. This waiver expires
at the end of the award year that begins after the date on which the
Federally-declared national emergency related to COVID-19 is rescinded.
Perkins Loans (34 CFR 674.2(b))
Under sections 428F(b) and 464(h)(2) of the HEA and under the
definition of ``satisfactory repayment arrangement'', a defaulted
Perkins Loan borrower may make six consecutive, on-time, voluntary,
full, monthly payments to reestablish eligibility for title IV Federal
student financial assistance. To assist Perkins Loan borrowers who are
affected by the COVID-19 pandemic, the Secretary is waiving, through
December 31, 2020, the statutory and regulatory provisions that require
the borrower to make consecutive payments to reestablish eligibility.
Loan holders are encouraged not to treat any payment missed during the
time that a borrower is an affected individual in this category as an
interruption in the six consecutive, on-time, voluntary, full, monthly
payments required for reestablishing title IV eligibility. If there is
an arrangement or agreement in place between the borrower and loan
holder and the borrower makes a payment during this period, the loan
holder must treat the payment as an eligible payment
[[Page 79862]]
in the required series of payments even if the borrower did not make
additional payments during this period. At the conclusion of this
waiver period, the required sequence of qualifying payments may resume
at the point they were discontinued because of the borrower's status as
an affected individual. The Secretary will apply the waivers described
in this paragraph to loans held by the Department.
Loan Rehabilitation (34 CFR 674.39)
Federal Perkins Loan borrowers must make nine consecutive, on-time
monthly payments to rehabilitate a defaulted Federal Perkins Loan in
accordance with Sec. 464(h)(1)(A) of the HEA and Sec. 674.39. To
assist title IV borrowers who are affected by the COVID-19 pandemic,
the Secretary is waiving, through December 31, 2020, the statutory and
regulatory loan rehabilitation requirements that eligible payments must
be made over no more than 10 consecutive months, as follows. Loan
holders other than the Department are encouraged to treat any payment
missed during the time that a borrower is an affected individual in
this category as a payment that counts toward a rehabilitation
agreement. If there is an arrangement or agreement in place between the
borrower and loan holder and the borrower makes a payment or payments
during this period, the loan holder must treat the payment as an
eligible payment in the required series of payments. When the borrower
is no longer an affected individual in this category, the required
sequence of qualifying payments may resume at the point they were
discontinued because of the borrower's status as an affected individual
to successfully rehabilitate a Perkins Loan. The Department will apply
the waivers described in this paragraph to loans held by the
Department.
Repayment of a Loan (34 CFR 682.209)
Section 682.209 provides that interest accrues on an FFEL loan
during the interval between scheduled payments. On March 13, 2020, the
President announced \3\ that the interest on all FFEL loans held by the
Department and on all Direct Loans would be waived amid the coronavirus
outbreak. On March 20, 2020, the Secretary announced \4\ that interest
rates for such loans would be set to zero percent (0%) for a period of
at least 60 days, during which time borrowers would have the option to
suspend their monthly loan payments. On March 27th, 2020, the CARES Act
was signed into law and provided that interest would not be charged on
Perkins, HEAL, FFEL, or Direct Loans held by the Department through
September 30, 2020. Following the President's Memorandum of August 8,
2020, the Secretary is further extending until December 31, 2020, in
accordance with the prior announcement, the waivers of the regulatory
provisions in Sec. Sec. 682.202 and 682.209 that require that interest
be charged on FFEL loans held by the Department from March 13, 2020,
through March 27, 2020, and from October 1, 2020 through December 31,
2020. The affected loans include FFEL Program Loans that the Department
acquired pursuant to the Ensuring Continued Access to Student Loans Act
of 2008 (ECASLA), through the assignment of defaulted loans under Sec.
682.409, and rehabilitated loans for which a guaranty agency could not
secure a purchaser and assigned to the Department under Sec.
682.405(a)(2)(ii). This does not apply to defaulted FFEL Program Loans
for which a guaranty agency has paid a claim to the FFEL Program lender
and on which the guaranty agency is pursuing the borrower for
collection. However, the guaranty agencies may voluntarily provide
interest or payment waivers, for the duration of the COVID-19 national
emergency, to borrowers of loans on which collection activity
continues.
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\3\ /www.whitehouse.gov/presidential-actions/memorandum-
continued-student-loan-payment-relief-covid-19-pandemic/.
\4\ www.ed.gov/news/press-releases/delivering-president-trumps-promise-secretary-devos-suspends-federal-student-loan-payments-waives-interest-during-national-emergency.
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Obligation To Repay (34 CFR 685.207)
Section 685.207 provides that a borrower is required to pay any
interest not subsidized by the Secretary unless the borrower is
relieved of the obligation to repay. On March 13, 2020, the President
announced that the interest on all student loans held by the Department
would be waived amid the coronavirus outbreak. On March 20, 2020, the
Secretary announced that interest rates for such loans would be set to
zero percent for a period of at least 60 days, during which time
borrowers would have the option to suspend their monthly loan payments.
On March 27th, 2020, the CARES Act was signed into law and extended
this same benefit through September 30, 2020. The period of this
benefit was further extended to December 31, 2020 by the President's
Memorandum of August 8, 2020. Accordingly, Direct Loans are
automatically placed in an administrative forbearance status that is
currently scheduled to be in effect from March 13, 2020, through
December 31, 2020.
Borrower Defense to Repayment (34 CFR 685.206 & 685.222)
When the Department expanded the utilization of the Borrower
Defense to Repayment (BD) provision to provide potential loan
forgiveness to borrowers who had enrolled in certain programs, during
certain periods of time, it offered to review BD applications submitted
by students who had FFEL or Perkins loans, and other loans that were
not Direct Loans (non-Direct Loans), and notify the borrower of their
eligibility for full or partial loan relief in the event that such
students elected to consolidate those loans into a Direct Consolidation
Loan. If the Department determined that the borrower had successfully
established a defense to repayment, the borrower could apply for a
Direct Consolidation Loan to receive the discharge. On July 1, 2020,
new regulations regarding BD went into effect. In the months prior to
July 1, 2020, BD applicants were not specifically notified that they
would need to take action to consolidate the non-Direct loans included
in their borrower defense applications into a Direct Consolidation Loan
prior to July 1, 2020, to ensure that the Direct Consolidation Loan
would be adjudicated under the 2016 BD regulations, which includes the
standards under which the Department would make the determination of
eligibility for BD relief on FFEL or Perkins loans, or other non-Direct
Loans, in the event that the borrower chose to consolidate his or her
eligible loans into a Direct Consolidation Loan. Applications for
relief on Direct Consolidation Loans that include FFEL or Perkins loans
originally included in BD applications received by the Department prior
to July 1, 2020, will therefore be adjudicated under the standards for
Direct Loans, including Direct Consolidation loans, disbursed between
July 1, 2017, and July 1, 2020.
Recertification of Income-Driven Repayment Plans (34 CFR 685.209 &
685.221)
Sections 685.209 and 685.221 provide that a borrower participating
in an income-driven repayment plan is required to provide
documentation, acceptable to the Secretary, that enables the annual
calculation of the borrower's payment amount for each year that the
borrower remains on the plan. The Secretary is waiving Sec. Sec.
685.209(a)(5)(i) and 685.221(e)(1) for one calendar year from the date
on which a borrower would have been required to provide
[[Page 79863]]
recertification documentation in 2020. Borrowers will be notified by
their loan servicer of their new recertification date, in advance of
the deadline on which such documentation is required.
Capitalization of Interest Under the Income-Contingent Repayment Plan
(34 CFR 685.209)
Section 685.209(a)(2)(iv)(A) provides that interest is capitalized
on a borrower's loans that are being repaid under the income-contingent
repayment plan when a borrower is determined to no longer have a
partial financial hardship or at the time a borrower chooses to leave
the Pay As You Earn repayment plan. As noted above, all Direct Loans in
repayment or default have been placed in an administrative forbearance
status and interest has been suspended. If the borrower's loan payments
were current before the administrative forbearance period began,
interest accrued prior to March 13, 2020, will not capitalize at the
end of the coronavirus-related administrative forbearance period.
However, if the borrower's loans were in the type of deferment or
forbearance in which interest would normally capitalize before the
coronavirus-related administrative forbearance period began, interest
accrued prior to March 13, 2020, will capitalize when the borrower's
original deferment or forbearance ends, or on January 1, 2021,
whichever is later.
For borrowers whose loans were in a grace period before the
coronavirus-related administrative forbearance period began, any
outstanding or unpaid interest on a borrower's account will capitalize
as it usually does when the loan(s) enter repayment.
This waiver expires on December 31, 2020.
Academic Calendar Flexibility (34 CFR 690.63)
Section 690.63(a)(3) requires, as a condition of calculating Pell
grant eligibility under Formula 1,\5\ that students not be allowed ``to
be enrolled simultaneously in overlapping terms . . .''. The Secretary
is waiving this requirement for academic years that include the latter
of December 31, 2020, or the last date of the COVID-19 national
emergency. All standard terms will be permitted to overlap with an
adjacent term without the program being considered non-term.
Additionally, a standard semester or trimester may consist of as few as
13 weeks of instructional time and a standard quarter as few as nine
weeks of instructional time without the program being considered a non-
standard term program.
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\5\ https://ifap.ed.gov/sites/default/files/attachments/2019-09/1920FSAHbkVol3Master.pdf.
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The Secretary is waiving the provisions of Sec.
690.63(a)(1)(ii)(B)(3) and permitting IHEs to treat as standard term
any academic calendar comprised of semesters, trimesters, or quarters
that overlap. For all academic years that include the later of December
31, 2020, or the end date for the COVID-19 Federally declared
emergency, the existence of overlapping standard terms will not result
in a program being considered non-term.
Section 3513 of the CARES Act
Section 3513 of the CARES Act directs the Secretary to: (1) Suspend
all payments due, (2) cease interest accrual, and (3) suspend
involuntary collections for loans made under part D and part B (that
are held by the Department) of title IV of the HEA through September
30, 2020. The section also directs the Secretary to deem each month for
which a loan payment was suspended as if the borrower of the loan had
made a payment for the purpose of any loan forgiveness program or loan
rehabilitation program authorized under part D or B for which the
borrower would have otherwise qualified. Lastly, this section directs
the Secretary to ensure that, for the purpose of reporting information
about the loan to a consumer reporting agency, any payment that has
been suspended is treated as if it were a regularly scheduled payment
made by a borrower.
On August 8, 2020, the President issued a memorandum directing the
Secretary to continue to waive interest and payments on such loans
until December 31, 2020. Therefore, in accordance with the prior
announcement, the Secretary is using her authority under the HEROES Act
to modify the terms of the benefits provided under section 3513 of the
CARES Act such that they will continue to be provided to borrowers
until December 31, 2020.
Accessible Format: On request to Mr. Jean-Didier Gaina, by
telephone: (202) 502-7526 or by email: [email protected],
individuals with disabilities can obtain this document in an accessible
format (such as braille, large print, audiotape, or compact disc), to
the extent reasonably practicable.
Electronic Access to This Document: The official version of this
document is the document published in the Federal Register. You may
access the official edition of the Federal Register and the Code of
Federal Regulations at www.govinfo.gov. At this site you can view this
document, as well as all other documents of this Department published
in the Federal Register, in text or 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.
(Catalog of Federal Domestic Assistance Numbers: 84.007 Federal
Supplemental Educational Opportunity Grant Program; 84.032 Federal
Family Education Loan Program; 84.032 Federal PLUS Program; 84.033
Federal Work-Study Program; 84.038 Federal Perkins Loan Program;
84.063 Federal Pell Grant Program; and 84.268 William D. Ford
Federal Direct Loan Program.)
Program Authority: 20 U.S.C. 1071, 1082, 1087a, 1087aa, Part F-
1.
Robert King,
Assistant Secretary for Postsecondary Education.
[FR Doc. 2020-27042 Filed 12-10-20; 8:45 am]
BILLING CODE 4000-01-P