[Federal Register Volume 59, Number 81 (Thursday, April 28, 1994)]
[Unknown Section]
[Page ]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-10133]
[Federal Register: April 28, 1994]
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Part V
Department of Education
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34 CFR Part 668
Student Assistance General Provisions; Proposed Rule
DEPARTMENT OF EDUCATION
34 CFR Part 668
RIN 1840-AC10
Student Assistance General Provisions
AGENCY: Department of Education.
ACTION: Notice of proposed rulemaking.
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SUMMARY: The Secretary proposes to amend Subpart E of the Student
Assistance General Provisions regulations, 34 CFR Part 668,
Verification of Student Aid Application Information, to implement
revisions resulting from the Higher Education Amendments of 1992 (Pub.
L. 102-325) and the Higher Education Technical Amendments of 1993 (Pub.
L. 103-208). In this issue of the Federal Register the Secretary is
publishing final regulations revising the existing Student Assistance
General Provisions regulations to conform to statutory changes and
clarify existing requirements associated with the verification of
student aid application information. The Secretary requests comments on
proposed changes in the percentage of Title IV applicants an
institution is required to verify annually in an award year and the
dollar tolerance amount.
DATES: Comments must be received on or before May 31, 1994.
ADDRESSES: All comments concerning these proposed regulations should be
addressed to Lorraine Kennedy, U.S. Department of Education, 400
Maryland Avenue SW., Regional Office Building 3, room 4318, Washington,
DC 20202-5451.
FOR FURTHER INFORMATION CONTACT: Lorraine Kennedy, U.S. Department of
Education, 400 Maryland Avenue SW., Regional Office Building 3, room
4318, Washington, DC 20202-5451. Telephone (202) 708-4601. 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.
SUPPLEMENTARY INFORMATION: Subpart E of the Student Assistance General
Provisions regulations (34 CFR part 668) governs the verification of
the information that is used to calculate an applicant's expected
family contribution (EFC) as part of the determination of an
applicant's need for student financial assistance. Based on the need
analysis formula established in the statute, the EFC is the amount that
an applicant and the applicant's family can reasonably be expected to
contribute towards the applicant's cost of attendance at an institution
of higher education.
Summary of Proposed Changes
The Secretary proposes to change the requirement in Sec. 668.54
that determines the percentage of selected applicants required to be
verified annually by an institution in any award year. The Secretary
also proposes to change the amount of the dollar tolerance option in
Sec. 668.59 for the Federal Pell Grant, Federal Stafford Loan, Federal
Direct Student Loan, campus-based, and Presidential Access Scholarship
programs.
The Secretary has amended Sec. 668.54 to remove the 30 percent
verification limitation and require institutions to verify all selected
applicants. This change is required by the deletion of section 484(f)
of the Higher Education Act of 1965, as amended, by the enactment of
the Higher Education Technical Amendments of 1993. The Secretary is
extending an invitation to comment to determine if there should be an
option available to institutions to not verify more than a certain
percentage of applicants and if so, what would be an appropriate
percentage and evidence for that threshold. The new percentage would be
published in the Federal Register, after all comments from the aid
community have been reviewed and analyzed by the Secretary.
The Secretary also proposes a $400 tolerance option to be used for
all Title IV programs in place of the prior $200 Pell and $800 Stafford
Loan and campus-based tolerance options. The Higher Education
Amendments of 1992 provided a single formula for establishing need for
all Title IV student financial assistance programs. Under one of the
former need analysis formulas, Congressional Methodology, a larger
tolerance for calculating the EFC was allowed because it did not result
in a change in the applicant's award. In determining the single $400
tolerance figure for all Title IV programs, the Secretary analyzed the
data to determine the appropriate tolerance amount that would not
result in a change in the applicant's award.
Under the change proposed, one tolerance for all applicants would
be used and that would not differ depending on the specific programs to
which the student is applying for assistance. The Secretary considers
the value of this simplification of the regulations to outweigh any
potential loss in flexibility.
Establishment of a new tolerance amount to be used in the
calculation of an applicant's EFC would not establish a new policy.
Institutions are currently using tolerance amounts in the calculation
of an applicant's EFC. However, since the Secretary would be
implementing a new single tolerance amount and deleting the zero PGI
charts to simplify the processing of Title IV assistance, the Secretary
requests public comment on the establishment of the $400 tolerance.
The Secretary will issue final changes to Secs. 668.54 and 668.59
of these regulations following an opportunity for public comment in
response to the proposed changes listed above.
Executive Order 12866
These proposed regulations have been reviewed in accordance with
Executive Order 12866. Under the terms of the order the Secretary has
assessed the potential costs and benefits of this regulatory action.
The potential costs associated with the proposed regulations are
those resulting from statutory requirements and those determined by the
Secretary to be necessary for administering this program effectively
and efficiently.
In assessing the potential costs and benefits--both quantitative
and qualitative--of these proposed regulations, the Secretary has
determined that the benefits of the proposed regulations justify the
costs.
The Secretary has also determined that this regulatory action does
not unduly interfere with State, local, and tribal governments in the
exercise of their governmental functions.
To assist the Department in complying with the specific
requirements of Executive Order 12866, the Secretary invites comment on
whether there may be further opportunities to reduce any potential
costs or increase potential benefits resulting from these proposed
regulations without impeding the effective and efficient administration
of the programs.
Regulatory Flexibility Act Certification
The Secretary certifies that these proposed regulations would not
have a significant economic impact on a substantial number of small
entities. Small entities affected by these regulations are small
institutions of higher education. However, the regulations would not
have a significant economic impact on the small institutions affected
because the regulations would not impose excessive regulatory burdens
or require unnecessary Federal supervision. The regulations would
impose minimal requirements necessary to ensure the proper expenditure
of program funds.
Invitation To Comment
All comments concerning these proposed changes should be sent to
the contact person given above. All comments submitted in response to
the proposed changes to Secs. 668.54 and 668.59 will be available for
public inspection during and after the comment period in room 4613,
Regional Office Building No. 3 (ROB-3), 7th and D Streets SW.,
Washington, DC between the hours of 8:30 a.m. and 4 p.m., Monday
through Friday of each week except Federal holidays.
Assessment of Educational Impact
The Secretary particularly requests comments on whether the
proposed regulations in this document would require transmission of
information that is being gathered by or is available from any other
agency or authority of the United States.
List of Subjects in 34 CFR Part 668
Administrative practice and procedure, Colleges and Universities,
Consumer protection, Education, Grant programs-education, Loan
programs-education, Reporting and recordkeeping requirements, Student
aid.
(Catalog of Federal Domestic Assistance Numbers: Federal
Supplemental Educational Opportunity Grant Program, 84.007; Federal
Stafford Loan Program, 84.032; Federal PLUS Loan Program, 84.032;
Federal Work-Study Program, 84.033; Federal Perkins Loan Program,
84.038; Federal Pell Grant Program, 84.063; Presidential Access
Scholarship and Partnership Program, No number assigned; Federal
Direct Student Loan Program, 84.268)
Dated: April 21, 1994.
Richard W. Riley,
Secretary of Education.
[FR Doc. 94-10133 Filed 4-26-94; 8:45 am]
BILLING CODE 4000-01-P
