Uncover the Mysteries of the Law and Regulations Devin Croft Margaret Day

1. Uncover the Mysteries of the Law and Regulations Devin Croft Margaret Day

2. What’s 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

3. Title IV Federal StudentAid Programs • Pell Grants • ACG & National SMART Grant • Campus Based Programs • FSEOG, FWS, Federal Perkins Loans • FFELP/FDLP

4. 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 Who’s Responsible?

5. Legislation VS. Regulation • Legislation • Congress Adopts with presidential signature or after overriding a veto • Amends the U.S. Code -- the statute (e.g., Higher Education Act) • Public Laws (108-XX)

6. How the Law is Numbered • P.L. 105-244 (10/7/98) reauthorized the HEA • 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)

7. Legislative Process • Authorizing Legislation: • Introduced by a Representative or Senator to amend or create a federal statute • Appropriating Legislation: • Sets annual funding levels for federal programs

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

9. 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of “reauthorizing” or continuing the existing law • Reauthorization of the Higher Education Act of 1965, as amended • Originally enacted as part of President Johnson’s “Great Society” programs • Authorizations “sunset” and must be renewed • Authorizes all federal Higher Education Programs

10. 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

11. 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

12. 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

13. Legislation VS. Regulation • Regulations • Promulgated by appropriate federal agency • U.S. Department of Education • Reviewed by Office of Management and Budget (OMB) • Interprets and adds detail to statute • Amends Code of Federal Regulations (C.F.R.)

14. 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”

15. Regulatory Process • New/amended regulations 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 • Regulations compiled once a year

16. Regulatory Process - 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

17. Title IV Regulations -Federal Register • The official daily compilation of federal regulations and notices • prepared by the NARA; published by GPO • Available on online or in hardcopy

18. Title IV Regulations - Code of Federal Regulations • Codification of the regulations • Divided into 50 titles; Title 34 governs federal financial aid • Updated once each calendar year • Available online or in hardcopy

19. 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

20. Guidance vs. Laws and/or 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

21. 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

22. Title IV Guidance - The Blue Book • Primary resource for school Business Office • Available online or in hardcopy

23. Title IV Guidance -Dear Colleague Letters • Issued by ED to provide additional policy/guidance • Q&A’s • Technical information • Introduce new rules • Explain rules in existence • Explain policies

24. Dear Colleague Letter Numbering • ANN Training Announcements • CB Campus-based Programs • FP Financial Partners (FFEL lenders & guarantee agencies) • GEN General Distribution • P Pell Grant Program • DLB Direct Loan Bulletins

25. Dear Colleague Letter Numbering GEN-07-02 GEN = type of letter 07 = calendar year 02 = number of letter in that calendar year Second GEN letter in 2007

26. 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

27. Where can I find this information? • IFAP – ifap.ed.gov • FAP Portal – fsa4schools.ed.gov

28. Federal Student Aid (FSA) Handbook

29. Order hardcopies of Handbooks, Blue Books, CFRs and other items

30. What’s 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

31. Legislation and Regulation Now You’re An Expert!!!

32. Margaret Day Phone: (303) 844-3677 ext. 127 Email: margaret.day@ed.gov Contacts We appreciate your feedback and comments. We can be reached at: Devin Croft • Phone: (303) 844-3677 ext. 125 • Email: devin.croft@ed.gov

33. Please provide any comments regarding this training or the trainers to: Jo Ann Borel Title IV Training Supervisor joann.borel@ed.gov 202-377-3930