Uncover the Mysteries of the

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Session FF-11

• Uncover the Mysteries of the
• Law and Regulations
• Anita Wojick
• U.S. Department of Education

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Whats Important?

• How Does a Bill Become a Law?
• Laws VS. Regulations
• What's the Federal Register?
• What's the Blue Book?
• What is meant by Guidance"?
• Finding Answers Using the Federal Student Aid
  Handbook and Dear Colleague Letters

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Title IV Federal StudentAid Programs

• Pell Grants
• Academic Competitiveness Grant
• National SMART Grant
• TEACH Grant
• Campus Based Programs
• FSEOG, FWS, Federal Perkins Loan
• FFELP/FDLP

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Whos Responsible?

• Congress
• Creation and modification of programs
• Need analysis formula
• Maximum grant and loan amounts
• Amount of funding

• Executive Branch
• Cash management
• Audit criteria
• Enforcement (L, S T)
• FAFSA design
• Reporting requirements

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Law The Process

• Authorizing Legislation
• Established HEA of 1965 as amended
• Reauthorization changes/renews authorizing
  legislation approximately every 5 years
• Appropriating Legislation
• Annually funds programs
• Budget bills

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How the Law is Numbered

• Title IV, Part G - General Provisions
• Subpart (Arabic numerals when used)
• Section 484 - Student Eligibility
• Subsection (c) - Satisfactory Progress
• Paragraph (1)
• Subparagraph (A)
• Division - lower case Roman - (i), (ii), (iii)
• Clause - upper case Roman - (I), (II), (III)
• Example Sec. 484(c)(1)(A)

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What Is Reauthorization?

• Process of reauthorizing or continuing the
• existing law
• Reauthorization of the Higher Education Act of
  1965, as amended
• Originally enacted as part of President Johnsons
  Great Society programs
• Authorizations sunset and must be renewed
• Authorizes all federal Higher Education Programs

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Why Reauthorization?

• Reauthorization provides the opportunity for
  Congressional review
• Public hearings
• More time to consider ideas
• Ability to review fundamental issues
• Access
• Choice
• Eligibility
• Subsidies
• Accountability

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Latest Reauthorization

• Higher Education Opportunity Act of 2008 enacted
  August 14, 2008
• Also known as H.R. 4137

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Hand-off To The Executive Branch

• Presidential signature required on all changes to
  the law
• Date of enactment is the date that the President
  signs a bill into law

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Hand-off To The Executive Branch

• Executive Branch must execute and enforce laws
• Statutory language may be vague
• Congress may direct that regulations be written
  or may prohibit regulation
• Regulations are the primary vehicles that
  executive branch agencies use to interpret and
  enforce statutes
• Sub-Regulatory guidance includes Dear Colleague
  Letters, forms, Audit Guide

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Federal Regulations

• Regulations
• Promulgated by appropriate federal agency
• U.S. Department of Education
• Reviewed by Office of Management and Budget (OMB)
• Implements and adds detail to statute

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Regulatory Process

• Negotiated Rulemaking (Neg-Reg)
• Mandated by the Higher Education Act (HEA)
• All rules implementing changes to the Higher
  Education Act, and revisions to regulations, are
  subject to this process
• Secretary consults with the community

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Regulations - The Process

• Initially published in the Federal Register
• Notice of Proposed Rulemaking (NPRM)
• Comment periods 30, 45, 60, or 120 days
• Final Rules
• Effective date 45-days following publication or
  later date published in Federal Register
• Notices
• Provide regulatory deadlines and announcements

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Master Calendar

• Rules must be published by the preceding November
  1 to be effective for an academic year
• Example rules published by November 1, 2007 will
  be effective on July 1, 2008 for 2008-2009 award
  year
• Secretary may permit earlier implementation

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Title IV Regulations -Federal Register

• The official daily publication of rules, proposed
  rules, and notices
• Prepared annually by the NARA published by GPO
• Available on online or in hardcopy

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Title IV Regulations - Code of Federal
Regulations

• Codification of rules
• Divided into 50 titles Title 34 governs federal
  student aid
• Updated once each calendar year
• Available online or in hardcopy

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How Regulations Are Numbered

• Title - 34
• Part numbers 600 thru 694
• Subpart numbers following the decimal point
• Section small letter, e.g. (a)
• Explanatory Subsections
• (1)(i)(A)
• Example the Standards of Administrative
  Capability Regulatory Cite is 34 CFR 668.16

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Guidance vs. Laws and Regulations

• Guidance is information that provides direction
  or advice as to a decision or course of action
• Guidance, as related to the Title IV programs, is
• Issued by ED
• Helps financial aid administrators interpret
  laws/regs
• Administered in several different forms

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Title IV Guidance - FSA Handbook

• Primary resource for financial aid administrators
• Provides plain language explanation of laws and
  regulations
• Published annually
• Available online or in hardcopy

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Title IV Guidance - The Blue Book

• Primary resource for school Business Office
• Available online or in hardcopy

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Title IV Guidance -Dear Colleague Letters

• Issued by ED to provide additional
  policy/guidance
• QAs
• Technical information
• Introduce new rules
• Explain rules in existence
• Explain policies

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Dear Colleague Letter Numbering

• Training Announcements
• Campus-based Programs
• Financial Partners
• General Distribution
• Pell Grant Program
• Direct Loan Bulletins

• ANN
• CB
• FP
• GEN
• P
• DLB

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Dear Colleague Letter Numbering

• GEN-08-02
• GEN type of letter
• 08 calendar year
• 02 number of letter in that calendar year
• Second GEN letter in 2008

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Title IV Guidance -Electronic Announcements

• Less formal memos/letters from Senior FSA staff
  to assist schools
• Provide updates, guidance, reminders, notices
• Delivered electronically
• Sent to SAIG mailbox
• Listed on IFAP by date

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Where can I find this information?

• Information For Financial Aid Professionals
• ifap.ed.gov
• Financial Aid Professionals Portal
• fsa4schools.ed.gov/SCHOOLSWebApp/index.jsp

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Whats Involved? - Review

• The Law Higher Education Act of 1965, as
  amended
• Created by Congress
• Regulations implement the Law
• Created by ED through negotiated rulemaking
  process
• Dear Colleague Letters
• Issued by ED to provide additional
  policy/guidance
• Electronic Announcements
• Less formal information from ED to assist schools

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Legislation and Regulation

• Now Youre An Expert!!!

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Contacts
Your feedback and comments are appreciated.

• Anita Wojick
• Training Officer
• 617-289-0130
• anita.wojick_at_ed.gov