NCHELP Sample

1
Trainin' in Memphis for Regs 101
2003 NCHELP Fall Training Conference
Memphis, Tennessee
Marlene Seeklander, Education Assistance
Corporation Erin Rooney, NextStudent Pat
Riemenschneider, Iowa Student Loan Betsy Mayotte,
American Student Assistance Nancy Masten,
Illinois Student Assistance Commission Steve
Meier, General Revenue Corporation Mike Johnson,
Utah Higher Education Assistance Authority Joy
Lightsey, Suntech, Inc.
2
What You Will Learn
The legislative process The hierarchy
Reauthorization and the path it takes The
regulatory process How to read a Federal
Register and regulations Sub-regulatory
guidance The best resources for finding rules
3
The Legislative Process

• Mr. Smith Goes to Washington
• Movie Clip

4
The Hierarchy

• Mike Johnson
• Utah Higher Education Assistance
  Authority

5
Higher Education Act

• Primary law is Higher Education Act of 1965
• Title IV
• Federal Family Education Loan Program
• General Provisions
• Federal Pell Grant Program
• Campus-Based Programs

6
Impact of Other Laws

• HEA can be impacted by other laws
• Electronic Signatures in Global
• and National Commerce Act
• Gramm-Leach-Bliley (privacy)
• USA Patriot Act
• Higher Education Relief Opportunities
• for Students Act (military deployment)
• Appropriations bills
• State privacy laws

7
How the Law is Implemented

• Role of the U.S. Department of Education
• Publish regulations (Code of Federal
  Regulations)
• Interpret and implement the law
• Provide sub-regulatory guidance
• Federal Student Aid Handbook
• Dear Partner/Colleague Letters
• Other interpretive communications

8
Hierarchy of Rules

• Some rules take precedence over others. . .
• Laws
• Regulations
• Dear Colleague/Dear Partner Letters
• Private Letters
• Verbal guidance

9
How the Law is Implemented

• Role of NCHELP
• Promote network of Title IV FFELP professionals
• Facilitate implementation of Title IV FFELP
  provisions
• Provide training and support
• Common Manual
• e-Library
• Conferences workshops
• Committees
• Represent members on policy regulatory issues

10
Reauthorizationand the Path it Takes

• Erin Rooney
• NextStudent

11
HEA Reauthorization

• Primary law is Higher Education Act (HEA)
• Reauthorization is required each 5-6 years by
  Congress
• Most recent reauthorization October 7, 1998
• Next reauthorization will be in 2004

12
This Years Guiding Tenets

• Affordability
• College costs and affordability
• Accessibility
• Expanding access to postsecondary education
• Simplifying the financial aid process
• Promoting education opportunities
• Accountability
• Ensuring accountability at all levels
• Quality
• Improving teacher training
• Promoting student academic preparation for
  postsecondary education

13
Its the Economy

• Money is key this year!
• Most parties agree that there will not be an
  increase in funding, so focus will be on
  maximizing effectiveness and quality of programs
  within current allocations
• If new funds are required, theyll likely come at
  the expense of another program
• All of this means a very political
  reauthorization process this year

14
Current Legislation

• Passed by the House
• Ready to Teach Act (H.R. 2211)
• Reauthorizes teacher education provisions in
  Title II of HEA
• Teacher Recruitment and Retention Act (H.R. 438)
• Provides for loan forgiveness for classroom
  teachers
• In Process in the House
• The College Opportunity Act for All (H.R. 3180)
• Reauthorization of Title IV student aid programs
• Expanding Opportunities in Higher Education (H.R.
  3039)

15
Hot Topics for Reauthorization

• Loan Limits
• Loan limits are out of step with cost of
  attendance
• Most discussion focused on raising annual and
  aggregate Stafford loan limits
• Last increase was 1992 reauthorization
• NASFAA proposal
• - Undergraduate 14,000 (7,000 unsubsidized)
• - Graduate 25,000 (15,000 unsubsidized)
• - Equalize annual loan limits (eliminate
  differences between 1st, 2nd, 3rd year students)

16
Hot Topics for Reauthorization

• Loan Limits
• Allow schools to adopt lower limits for specific
  student categories
• Student groups oppose increased limits
• Concerns about growing student debt burden

17
Hot Topics

• Consolidation
• Change interest rate from fixed to variable
• Same eligibility requirements for both FFELP and
  FDSLP
• Eliminate spousal consolidation
• Improve borrower counseling on pros and cons of
  consolidation, especially regarding inclusion of
  Perkins loans and possible loss of benefits

18
Hot Topics

• Repayment Issues
• Keep 10-year standard repayment term
• Make extended repayment terms available as an
  elective to all new borrowers with federal loan
  balances over 7,500
• Tiered repayment-term levels modeled on current
  consolidation loan terms
• Standardize borrower benefits for auto-debit
  payment, on-time repayment, etc.
• Mandate borrower contact on regular basis
  regarding repayment options throughout life of
  loan

19
Hot Topics

• School Issues
• Eliminate administrative burden
• Tracking Selective Service registration
• Tracking and enforcing Title IV fund
  eligibility based on drug-related convictions
• Maintain Financial Aid Administrator discretion
• Maintain school as lender provisions

20
Possible Reauthorization Timeline

• Fall 2003 House Education and the Workforce
  Committee hold hearings and mark-up
  reauthorization bills
• Late 2003 U.S. House of Representatives
  considers and passes their reauthorization bills
• February 2004 President Bush submits FY 2005
  Budget with additional indications of
  reauthorization priorities
• Spring 2004 Senate bill introduced in Committee
  on Health, Education, Labor and Pensions

21
Possible Reauthorization Timeline

• Late Spring 2004 Full Senate considers
  reauthorization bill
• Summer 2004 House and Senate members conference
  to resolve differences in their respective bills
• Late Summer 2004 House and Senate pass
  conference agreement and send bill to President
  for signature
• Late Summer/Fall 2004 Reauthorization bill
  signed by President

22
What happens next?

• Once the HEA has been reauthorized and signed by
  the President, the real fun beginsNeg Reg
• Representatives from many organizations hammer
  out regulatory language
• Consensus means unanimity

23
Negotiated Rulemaking

• Negotiated Rulemaking drafting sessions
• Notice of Proposed Rulemaking (NPRM)
• Public Comment Period
• Generally 30 60 days
• Opportunity to analyze changes
• Trade organizations, others review NPRM
• Determine coordinate issues
• Submit comments to ED
• Individually or as group
• Negotiators cannot disagree on consensus issues

24
Reading the Federal Register and Regulations

• Pat Riemenschneider
• Iowa Student Loan

25
Final Rules

• Final Rule published in Federal Register
• Rules become effective
• Master Calendar
• Effective dates specified in statute
• - General Effective Date (e.g., October 1)
• Early Implementation
• Some provisions are effective immediately (e.g.,
  self-implementing)
• Trigger Events
• Specific Effective Dates for certain items (e.g.,
  date of enactment, 90-days after, etc.)

26
What is the Federal Register?

• Medium for notifying the public of official
  agency actions
• Not unusual for a year or more to go by between
  the publication of proposed and final rules

27
Identifying an NPRM
28
NPRM Elements

• Preamble
• List of regs in NPRM
• Brief summary statement (why)
• Public comment deadline
• Where to send comments (e-mail or snail mail)
• Further information contact
• Supplementary information
• Detail
• Rationale
• Proposed Language

29
NPRM Sample
30
Identifying a Final Rule
31
Final Rules Usual Contents

• Preamble
• list of all parts changed
• brief summary of changes
• effective date
• Typically the following
• July 1st
• Could have several dates,
• some early
• individual to contact for further info
• supplementary information

32
Supplementary Information

• Background
• Historical discussion of process NPRM through
  final

33
Supplementary Information

• Substantive Revisions Optional section
  identifying final regulations which are
  significantly different from those proposed

34
Supplementary Information

• Analysis of comments and changes
• Summarizes comment
• Discussion EDs agreement or disagreement
• Change, if any, from the proposed rule

35
Final Rules Usual Content

• Regulatory language with changes integrated into
  existing regulation

36
Final Rules Usual Contents

• Regulatory language showing only changes

37
Reading a Regulation
38
Reading a Regulation

• 34 C.F.R.
• Part 682
• Section .207
• Subsection (b)
• Paragraph (1)
• Subparagraph (v)
• Division (B)
• Clause (2)

39
Reading a Regulation

• 34 CFR 682.207(b)(1)(v)(B)(2) Requires
  co-payable PLUS disbursements for checks
• Read all Lead-Ins!

40
Sub-Regulatory Guidance

• Betsy Mayotte
• American Student Assistance

41
Dear Colleague Letters (DCLs)

• Identify formal policy guidance issued by ED
• Changes such as to a form (GEN-03-04)
• Interim recent foreign school letters
  (G-03-348)
• Explanation TPD Process (GEN-02-03)
• Regulatory Relief military mobilizations
  (GEN-03-06)
• Informational Title IV WAN training
  (ANN-03-10)

42
DCL Organization

• ANN Announcements from SFA
• CB Campus Based
• GEN General Title IV
• G Guaranty Agencies
• L Lenders
• P Pell
• S FFEL Schools
• D - Disaster

43
DCL Numbering

• GEN-03-07
• General Distribution Year Issued
  Published
• Sequential numbering usually starts at 1 the
  beginning of each calendar year
• Can be found at www.ifap.ed.gov OR www.nchelp.org

44
Private Letters

• Similar to DCLs
• Sent to individuals in answer to specific
  questions

45
Common Manual

• Unified, guarantor policy
• FFELP only
• Differences found in Appendix C
• Updated regularly via Common Bulletins
• Entire volume updated every July
• Found on GA website or www.nchelp.org

46
Best Source of Resources

• Nancy Masten
• Illinois Student Assistance Commission

47
Best Source of Resources

• NCHELP e-Library

• Central source for FFELP and
• non-FFELP related information

• Organized into logical groupings

• Complete and updated as
• needed

• www.nchelp.org

48
NCHELP e-Library Home Page
49
Lets take a closer look at the e-Library
sections
50
e-Library Home Page
51
Laws Home Page
52
e-Library Home Page
53
Regulations Home Page
54
Regulations Home Page
55
Regulations ? Federal Registers - Enhanced!
56
e-Library Home Page
57
Dear Partner Letters Home Page
58
Dear Partner Letters ? Guarantor Letters
59
e-Library Home Page
60
Common Manual Home Page
61
e-Library Home Page
62
Forms Home Page
63
Forms ? Promissory Notes
64
e-Library Home Page
65
Manuals Guides Home Page
66
e-Library Home Page
67
Legal Proceedings Home Page
68
e-Library Home Page
69
Training Materials Home Page
70
e-Library Home Page
71
Reference Materials Home Page
72
Reference Materials Home Page
73
Reference Materials ? Topical Index of Regulations
74
e-Library Home Page
75
Reports/Testimonies Home Page

• Includes reports and testimony from government
  and industry groups and from NCHELPs own experts.

76
e-Library Home Page
77
Presentations Home Page

• By Conference
• Includes presentations made at NCHELP Events
  (archive of 2000-2002)
• By Topic
• Index to locate the one youre looking for by
  topic

78
e-Library Home Page
79
Higher Education Research Home Page
80
e-Library Home Page
81
Morning Briefing

• NCHELPs Daily update on the student loan
  community and issues affecting it
• Password Protected
• Includes archives back to November 1999

82
Morning Briefing Home Page
83
Morning Briefing
84
Future Enhancements

• Search Engine

85

• Now lets test your knowledge

86
Hollywood Squares

• Mike Johnson
• Utah Higher Education Assistance Authority
• Joy Lightsey
• Suntech, Inc.

87
Thank You