[Federal Register Volume 60, Number 152 (Tuesday, August 8, 1995)]
[Notices]
[Pages 40446-40447]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-19463]




[[Page 40445]]

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Part IV





Department of Education





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Federal Student Assistance Programs Under Title IV of the Higher 
Education Act of 1965, as Amended; Notice

  Federal Register / Vol. 60, No. 152 / Tuesday, August 8, 1995 / 
Notices   

[[Page 40446]]


DEPARTMENT OF EDUCATION


Federal Student Assistance Programs Under Title IV of the Higher 
Education Act of 1965, as Amended

AGENCY: Department of Education.

ACTION: Notice inviting applications for participation in the Quality 
Assurance Program.

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SUMMARY: The Secretary invites institutions of higher education that 
are not currently participating in the Quality Assurance (QA) Program 
under section 487A of the Higher Education Act to submit applications 
to participate beginning with the 1995-1996 award year.

DATES: Applications may be submitted any time after August 8, 1995.

ADDRESSES: Barbara Mroz, U.S. Department of Education, 600 Independence 
Avenue, SW., (Room 3925, ROB-3), Washington, DC 20202-5232.

FOR FURTHER INFORMATION CONTACT: Jacqulyn Bannister, telephone: (202) 
260-4788. 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:

Background

    The Department of Education is undertaking a series of initiatives 
to simplify regulations and administrative processes for the Federal 
student assistance programs authorized by Title IV of the Higher 
Education Act (HEA). By notice published on April 25, 1995, 60 FR 
20326, the Secretary invited QA Program participants and other 
institutions to submit proposals to reinvent the administration of 
those programs through the use of the experimental sites authority in 
section 487A(d) of the HEA. At the direction of the President, the 
Secretary has conducted a page-by-page review of all student financial 
assistance regulations to identify those that should be eliminated or 
improved. The Secretary will also consider developing proposals for 
statutory amendments to eliminate unnecessary administrative burden.
    As a part of this student aid reform effort, the Secretary intends 
to expand the QA Program. Begun on a pilot basis in 1985, the QA 
Program currently permits participating institutions to develop and 
implement their own comprehensive systems to verify student financial 
aid application data. Participation in the program is entirely 
voluntary. The Secretary is authorized to exempt participating 
institutions from the reporting and verification requirements that 
would otherwise apply and to substitute other necessary quality 
assurance reporting.
    Presently, ninety schools participate in the program, and the 
Secretary has exempted these schools from several provisions of the 
Student Assistance General Provisions regulations relating to 
verification.
    Beginning with the upcoming award year, the Secretary intends to 
expand the QA Program by increasing the number of schools that 
participate in the program and by employing the experimental sites 
authority in section 487A(d) of the HEA to facilitate the development 
of innovative management approaches on a broader scale. If 
participating QA schools, acting alone or together, develop an 
innovative approach to the management of student aid programs and the 
Secretary approves the approach, the Secretary is authorized to exempt 
the schools from any Title IV statutory or regulatory requirement that 
would bias the results of their experiments.

Invitation for Applications

    The Secretary invites institutions of higher education that 
administer one or more Title IV programs to submit applications to 
participate in the QA Program beginning with the 1995-1996 award year. 
Institutions that currently participate in the program may continue to 
do so without submitting new applications. Because training workshops 
will be scheduled for early fall, institutions are encouraged to apply 
as soon as possible. The Secretary anticipates that the review of 
applications will begin within 45 days of the date of this notice; 
however, applications that are received later will also be considered.
    An institution that wishes to apply may do so by mailing a letter 
of application to Barbara Mroz at the address provided at the beginning 
of this notice or by faxing it to her at (202) 708-9485. The Secretary 
will review applications on the basis of demonstrated institutional 
performance, as indicated by information currently on file that 
pertains to the institution and information in the letter of 
application that addresses the institution's commitment to the 
Secretary's current quality assurance goals. Those goals are the 
following:
    (1) To improve the accuracy of Title IV student aid awards;
    (2) To increase institutional flexibility in managing student aid 
funds while maintaining accountability for the proper use of those 
funds;
    (3) To encourage the development of innovative management 
approaches;
    (4) To emphasize results rather than process, up-front correction 
rather than after-the-fact inspection; and
    (5) To place responsibility for quality control and quality 
improvement at the point where funds and services are delivered--the 
institution.

Features of the Program

    The Secretary encourages institutions participating in the QA 
Program to employ a continuous cycle of assessment and improvement as 
they develop and implement their systems to verify student aid 
application data. Institutions evaluate their verification procedures, 
adopt improvements in those procedures, test the effects of those 
improvements, and adopt further improvements.
    The Secretary will adopt no regulations for the QA Program. 
Institutions that participate in the program will be free to develop 
and implement their own comprehensive verification systems and to 
request exemptions from reporting and verification requirements that 
would otherwise apply. It is the Secretary's intention to exempt all 
participating institutions from the requirements in the following 
provisions of 34 CFR part 668, subpart E--Verification of Student Aid 
Application Information:
     Section 668.53(a) (1)-(4);
     Section 668.54(a) (1), (2), and (4);
     Section 668.56;
     Section 668.57; and
     Section 668.60(a).
    In addition, a participating institution may request an exemption 
from any other student financial assistance program reporting or 
verification requirement. As provided by section 487A(b) of the HEA, 
the Secretary may substitute such quality assurance reporting as he 
deems necessary to ensure accountability and compliance with the 
purposes of the Title IV programs.
    Participating institutions may also take advantage of their 
improved administrative capabilities to propose their own individual or 
collective innovative approaches to the administration of Title IV 
programs under the experimental sites authority and to seek exemptions 
from Title IV requirements that stand in the way of those experiments. 
Further information on experimental sites may be found in the Federal 
Register document referred to earlier in this notice.
    The Secretary believes that the process of continuous improvement 
in 

[[Page 40447]]
verification systems fostered by the QA Program has enhanced the 
integrity of those systems at participating institutions. By expanding 
the program to include other management areas, the Secretary believes 
that it can serve to promote improvements not only in the accuracy of 
student aid awards and payments, but in the management of student aid 
offices and the delivery of services to students as well.

    Dated: August 2, 1995.
David A. Longanecker,
Assistant Secretary for Postsecondary Education.
[FR Doc. 95-19463 Filed 8-7-95; 8:45 am]
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