[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