[Federal Register Volume 63, Number 144 (Tuesday, July 28, 1998)]
[Rules and Regulations]
[Pages 40348-40349]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-20124]
[[Page 40347]]
_______________________________________________________________________
Part IV
Department of Education
_______________________________________________________________________
34 CFR Part 668
Student Assistance General Provisions; Final Rule
Federal Register / Vol. 63, No. 144 / Tuesday, July 28, 1998 / Rules
and Regulations
[[Page 40348]]
DEPARTMENT OF EDUCATION
34 CFR Part 668
Student Assistance General Provisions
AGENCY: Department of Education.
ACTION: Final regulations.
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SUMMARY: The Secretary amends the Student Assistance General Provisions
regulations. These technical amendments are necessary to correct
citations and typographical errors, to clarify regulatory language, and
to add Office of Management and Budget control numbers.
EFFECTIVE DATE: These regulations take effect July 1, 1998.
FOR FURTHER INFORMATION CONTACT: John Kolotos or Lloyd Horwich, U.S.
Department of Education, 7th and D Streets, SW, Regional Office
Building 3, Room 3045, Washington, DC 20202-5345. Telephone: (202) 708-
8242. Individuals who use a telecommunications device for the deaf
(TDD) may call the Federal Information Relay Service (FIRS) at 1-800-
877-8339 between 8 a.m. and 8 p.m., Eastern time, Monday through
Friday.
Individuals with disabilities may obtain this document in an
alternate format (e.g., Braille, large print, audiotape, or computer
diskette) on request to the contact person listed in the preceding
paragraph.
SUPPLEMENTARY INFORMATION: The following regulations are amended to
correct citations and typographical errors and to clarify regulatory
language in the text of the Student Assistance General Provisions
regulations, 34 CFR Part 668.
Sections 668.172 and 668.173 are amended to clarify regulatory
language explaining the general standards of financial responsibility.
Sections 668.174 and 668.175 are amended to correct certain citations
to other sections.
Section 668.174 also is amended to correct typographical errors
concerning the percentage of ownership necessary for a person or entity
to be considered to exercise substantial control over an institution
that receives funds under title IV of the Higher Education Act of 1965,
as amended, or over a third-party servicer to such an institution.
Final regulations for Secs. 668.171, 668.172, 668.174, and 668.175
were published on November 25, 1997 (62 FR 62830). Compliance with
information collection requirements in these sections was subject to
Office of Management and Budget (OMB) approval and assignment of an OMB
control number. OMB assigned a control number on January 20, 1998.
Publication of the control number in these final regulations notifies
the public that OMB has approved these information collection
requirements under the Paperwork Reduction Act of 1995.
Appendix G to Part 668 is amended to clarify the definition of an
accounting term used in calculating an institution's Primary Reserve
Ratio.
Waiver of Proposed Rulemaking
In accordance with the Administrative Procedure Act, 5 U.S.C. 553,
it is the Secretary's practice to offer interested parties the
opportunity to comment on proposed regulations. However, the regulatory
changes in this document are necessary to add OMB control numbers and
correct minor technical errors and omissions in the Student Assistance
General Provisions regulations, 34 CFR 668. They do not establish any
new substantive rules. Therefore, the Secretary has determined that
publication of a proposed rule is unnecessary and contrary to the
public interest under 5 U.S.C. 553(b)(B).
Regulatory Flexibility Act Certification
The Secretary certifies that these final regulations will not have
significant economic impact on a substantial number of small entities.
Small entities affected by these regulations are small institutions of
higher education. These regulations contain technical amendments
designed to clarify and correct current regulations. The changes will
not have a significant economic impact on any of the institutions
affected.
Paperwork Reduction Act of 1995
These regulations have been examined under the Paperwork Reduction
Act of 1995 and have been found to contain no information collection
requirements.
Assessment of Educational Impact
Based on its own review, the Department has determined that the
regulations in this document do not require transmission of information
that is being gathered by or is available from any other agency or
authority of the United States.
Electronic Access to This Document
Anyone may view this document, as well as all other Department of
Education documents published in the Federal Register, in text or
portable document format (pdf) on the World Wide Web at either of the
following sites:
http://ocfo.ed.gov/fedreg.htm
http://www.ed.gpv/news.html
To use the pdf you must have the Adobe Acrobat Reader Program with
Search, which is available free at either of the previous sites. If you
have questions about using the pdf, call the U.S. Government Printing
Office toll free at 1-888-293-6498.
List of Subjects in 34 CFR Part 668
Administrative practice and procedure, Colleges and universities,
Student aid, Reporting and recordkeeping requirements.
Dated: July 20, 1998.
David A. Longanecker,
Assistant Secretary for Postsecondary Education.
The Secretary amends Part 668 of Title 34 of the Code of Federal
Regulations as follows:
PART 668--STUDENT ASSISTANCE GENERAL PROVISIONS
1. The authority citation for Part 668 continues to read as
follows:
Authority: 20 U.S.C. 1085, 1088, 1091, 1092, 1094, 1099c, and
1141, unless otherwise noted.
Secs. 668.171, 668.172, 668.174, 668.175 [Amended]
2. Sections 668.171, 668.172, 668.174, and 668.175 are amended by
adding the OMB control number following the sections to read as
follows: ``(Approved by Office of Management and Budget under control
number 1840-0537)''.
Sec. 668.172 [Amended]
3. Section 668.172 is amended by removing ``Primary Reserve ratio''
and adding in its place ``ratio calculations'' in paragraph (c)(5)(ii).
4. Section 668.173 is amended by revising paragraph (b) to read as
follows:
Sec. 668.173 Refund reserve standards.
* * * * *
(b) Timely refunds. An institution demonstrates that it makes
required refunds within the time permitted under Sec. 668.22(j)(4) if
the auditor(s) who conducted the institution's compliance audits for
the institution's two most recently completed fiscal years, or the
Secretary or a State or guaranty agency that conducted a review of the
institution covering those fiscal years--
(1) Finds in the sample of student records audited or reviewed for
each of those fiscal years that--
(i) Less than five percent of the refunds that the institution made
within that sample were late (for purposes of determining the
percentage of late refunds under this paragraph, the auditor or
reviewer must include in the
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sample only those title IV, HEA program recipients who received or
should have received a refund under Sec. 668.22); or
(ii) The institution made only one late refund within that sample
(regardless of the percentage of the refunds within that sample
represented by the one late refund); and
(2) Did not note for either of those fiscal years a material
weakness or a reportable condition in the institution's report on
internal controls that is related to refunds.
* * * * *
Sec. 668.174 [Amended]
5. Section 668.174 is amended by removing ``20 percent ownership''
and adding in its place ``25 percent ownership'' in paragraphs
(c)(3)(i), (ii), (iii) and (iv)(B).
6. Section 668.174 is amended by adding ``a general partner'' after
``board of directors'' in paragraph (c)(3)(iv) introductory text.
Sec. 668.175 [Amended]
7. Section 668.175 is amended by removing ``668.174(d)'' and adding
in its place ``668.174(b)(1) and (c)'' in paragraphs (f)(3)(i) and
(ii).
8. Section 668.175 is amended by removing the semicolon and
inserting ``, except that this requirement does not apply to a public
institution;'' at the end of paragraph (f)(2)(i).
9. Section 668.175 is amended by removing ``668.174(d)'' and adding
in place ``668.174(b)(1) and (c)'' and by removing
``668.174(c)(2)(ii)'' and adding in its place ``668.174(b)(2)(ii)'' in
paragraph (g)(1)(i)(A).
10. Section 668.175 is amended by removing ``668.171(b) and (d)''
and adding in its place ``668.171(b) and (d)(1)'' in paragraph
(g)(1)(ii).
Appendix G--[Amended]
11. Appendix G, Section 1, to Part 668 is amended by inserting
``--(unsecured related-party receiv- ables)'' at the end of the
definition of Expendable Net Assets.
[FR Doc. 98-20124 Filed 7-27-98; 8:45 am]
BILLING CODE 4000-01-P
