[Federal Register Volume 60, Number 231 (Friday, December 1, 1995)]
[Rules and Regulations]
[Pages 61790-61794]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-29126]




[[Page 61789]]

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Part VI





Department of Education





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34 CFR Part 685



William D. Ford Federal Direct Loan Program; Final Rule

  Federal Register / Vol. 60, No. 231 / Friday, December 1, 1995 / 
Rules and Regulations   

[[Page 61790]]


DEPARTMENT OF EDUCATION

34 CFR Part 685

RIN 1840-AC22


William D. Ford Federal Direct Loan Program

AGENCY: Department of Education.

ACTION: Final regulations.

-----------------------------------------------------------------------

SUMMARY: The Secretary of Education amends the William D. Ford Federal 
Direct Loan (Direct Loan) Program regulations. The regulations apply to 
loans under the Federal Direct Stafford/Ford Loan (Direct Subsidized 
Loan) Program, the Federal Direct Unsubsidized Stafford/Ford Loan 
(Direct Unsubsidized Loan) Program, the Federal Direct PLUS Loan 
(Direct PLUS Loan) Program, and the Federal Direct Consolidation Loan 
(Direct Consolidation Loan) Program, collectively referred to as the 
Direct Loan Program. These regulations provide schools with more 
flexibility in performing origination functions, and clarify the date 
of loan origination. Further, these regulations set timelines for the 
submission of promissory notes, disbursement records, and origination 
records.

EFFECTIVE DATE: These regulations take effect July 1, 1996.

FOR FURTHER INFORMATION CONTACT: Ms. Katrina Ingalls, Program 
Specialist, Direct Loan Policy Group, Policy Development Division, U.S. 
Department of Education, Room 3053, ROB-3, 600 Independence Avenue, 
SW., Washington, DC 20202-5400. Telephone: (202) 708-9406. 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 Secretary is amending the Direct Loan Program regulations to 
improve the program based on experience gained during the first year of 
operation. These amended regulations reflect programmatic changes that 
the Secretary believes will improve services to student and parent 
borrowers, increase institutional flexibility, and enhance the 
Department's administrative and fiscal oversight capabilities.
    On September 20, 1995, the Secretary published the proposed amended 
regulations in a notice of proposed rulemaking (NPRM) for part 685 in 
the Federal Register (60 FR 48858). The major issues surrounding the 
proposed changes were discussed in the NPRM and thus will not be 
repeated here.
    The following section summarizes the two revisions to the proposed 
rule.

Substantive Revisions to the Proposed Rule

Section 685.215(h)(2)  Repayment Plans

    The NPRM proposed to revise the repayment plan regulations to 
reflect the Secretary's current operational practice regarding 
repayment plan selection for certain Direct Consolidation Loan 
borrowers. Under the NPRM, borrowers who consolidate only one FFEL 
Program loan into the Direct Loan Program would be required to select 
initially a repayment plan other than the standard repayment plan. The 
Secretary has determined that this restriction will not be included in 
the final regulations.

Section 685.301  Origination of a Loan by a Direct Loan Program School

    The NPRM proposed that the date of loan origination be the earlier 
of the date the promissory note is printed or the date the origination 
record is accepted by the Secretary. The Secretary has revised 
Sec. 685.301(a)(5) to provide that the date of loan origination is the 
date the school creates the electronic loan origination record for a 
borrower. Beginning with the 1996-1997 academic year, enhanced loan 
origination software will record the date of origination permanently on 
the borrower's loan file when the borrower's origination record is 
created by the school. Modifying the Direct Loan school software to 
record automatically the date the school creates the origination record 
will ensure that a school is able to document clearly the date that it 
certified the borrower's eligibility for the loan, the loan amount, and 
anticipated disbursement dates. The date the electronic origination 
record is created occurs earlier in loan processing than either 
printing the promissory note or the origination record being accepted 
by the Secretary. This change will result in improved service to 
schools by automatically generating the information necessary to 
document the origination process and will improve services to borrowers 
by promoting flexibility in processing loans.

Analysis of Comments and Changes

    In response to the Secretary's invitation in the NPRM, ten parties 
submitted comments on the proposed regulations. An analysis of the 
comments appears below, beginning with a general discussion of the 
comments received concerning the length of the comment period. This is 
followed by a general discussion of the comments received regarding the 
Secretary's consideration of establishing foreign school participation 
requirements for the Direct Loan Program.
    A discussion of the major issues that generated comments follows. 
The major issues are grouped according to subject, with references to 
the appropriate sections of the regulations. Technical and other minor 
changes, and suggested changes the Secretary is not legally authorized 
to make under the applicable statutory authority, generally are not 
addressed.

General Discussion of Length of Comment Period

    Several commenters argued that the comment period was too short, 
especially considering that the Department published six NPRMs, all 
with comment periods ending at approximately the same time.
    In the six NPRMs referred to above, the Secretary proposed numerous 
improvements and necessary changes to the Student Financial Assistance 
Programs. The ``Master Calendar'' provisions contained in section 482 
of the Higher Education Act of 1965 (HEA) require that regulations be 
published in final form by December 1 prior to the start of the award 
year for which they will become effective. Because of the importance of 
implementing these changes and improvements for the award year 
beginning July 1, 1996, the Secretary established a comment period that 
would allow publication of these final regulations by December 1, 1995, 
consistent with the ``Master Calendar'' timeframe. The Secretary always 
endeavors to provide as long a comment period as possible.

General Discussion of Foreign School Participation Comments

    In the preamble of the NPRM, the Secretary asked for comments and 
supporting arguments on:
     What, if any, additional standards should be established 
for foreign schools that participate in the Direct Loan Program;
     Potential financial risks as well as benefits of admitting 
foreign schools into the Direct Loan Program; and
     Potential losses or benefits to students related to 
foreign school participation in the Direct Loan Program.
    One foreign school responded to the Secretary's invitation for 
comments. This school expressed enthusiasm about the Direct Loan 
Program because it 

[[Page 61791]]
views potential participation as a way to solve some of the problems 
the school is currently experiencing in receiving loan funds under the 
FFEL Program. The commenter supported foreign school participation in 
the Direct Loan Program.
    Further, the commenter suggested that the Secretary should not 
group all foreign schools together for purposes of participation in the 
Direct Loan Program and recommended that a separate category be 
established for schools that are located outside of the U.S. but are 
U.S. accredited. It is the school's opinion that this group would 
present a lower potential financial risk for the Federal Government 
since these schools maintain a U.S. Admissions Office and a U.S. dollar 
bank account. This commenter also pointed out the importance of making 
sure that foreign schools have trained individuals processing loans for 
their students.
    Another commenter felt that it was premature to consider foreign 
school participation in the Direct Loan Program and recommended that 
processing system changes be implemented prior to allowing foreign 
school participation.
    A third commenter recommended that foreign schools be allowed to 
participate, but not allowed to originate loans. This commenter 
suggested that foreign schools be required to use an alternative 
originator. This suggestion was made based on the commenter's opinion 
that all foreign schools are not uniform in their ability to administer 
the Title IV programs.
    The Secretary understands and appreciates the issues raised by 
these commenters. As discussed in the NPRM, the Secretary is aware 
that, due to the nature of the Direct Loan Program, additional fiscal 
oversight and administrative requirements are warranted for 
participating foreign schools. The Direct Loan Program is unique among 
the financial aid programs with respect to its funds disbursement 
processes and requirements. Because there is no authorized limit to the 
amount of funds that schools may draw down in the Direct Loan Program, 
the Department must rigorously oversee the funds disbursement process. 
To prevent potential program abuse, the Secretary is committed to the 
careful monitoring of the drawdown of funds to schools and the 
disbursement to students.
    Based on the comments received, the Secretary has determined that 
the issue of foreign school participation in the Direct Loan Program 
warrants further consideration. Therefore, no specific provisions 
related to foreign school participation are included in these 
regulations.

Discussion of Major Issues

Section 685.102  Definitions

School Origination Option 1, School Origination Option 2, and Standard 
Origination

Section 685.102(b)
    Comments: Several commenters responded to the proposed revisions of 
the current definitions of school origination option 1, school 
origination option 2, and standard origination. These commenters viewed 
these changes as a positive step that would allow institutions greater 
flexibility to have the origination process modified based on the their 
unique capabilities and individual needs.
    Several other commenters did not support the proposed change. These 
commenters argued that the Secretary should not amend the ``origination 
requirements.''
    Discussion: It appeared from the comments that there may be some 
confusion regarding the proposed change. The Secretary is not changing 
the origination criteria, nor is the Secretary redesignating the 
functions performed at a given level of origination. The purpose of 
this amendment is to allow a school the flexibility to ask the 
Secretary to perform a function that the school must, under current 
regulation, perform, at a given origination level. If the Secretary 
approves the school's request, the Secretary will perform the 
functions, but the school would not be required to change its 
origination level.
    For example, during the 1996-1997 academic year, an origination 
option 2 level school is fully qualified to perform all loan 
origination functions and to draw down loan funds. If a school wanted 
to ask the Secretary to handle the promissory note functions, but still 
wanted to be able to draw down funds (for which the school is fully 
qualified), current regulations would not allow this option. The 
proposed change would allow the Secretary to establish this type of 
individual agreement with the school.
    The proposed regulatory amendment would not undermine the integrity 
of the program or the Secretary's ability to provide sound oversight. 
Furthermore, the change is consistent with the Secretary's current 
initiative to promote regulatory flexibility and reduce unnecessary 
burden on institutions. The Secretary is confident that this regulatory 
change allows schools to customize the origination process in a manner 
that would be beneficial for schools, as well as the Direct Loan 
Program.
    Change: For clarity, the word ``status'' has been changed to 
``options'' in each of the definitions.
    Comments: A number of commenters recommended that any revisions to 
the origination criteria be established through negotiated rulemaking. 
These commenters noted that the existing origination criteria were 
developed through extensive negotiated rulemaking.
    Discussion: Section 457 of the HEA requires the Secretary to 
conduct negotiated rulemaking for the Direct Loan Program only to the 
extent practicable. This section does not require negotiated rulemaking 
for amendments to existing regulations. Further, the Secretary does not 
believe that it is practicable to conduct negotiated rulemaking for 
amendments to these regulations. Negotiated rulemaking is a lengthy 
process that would have prevented implementation of the revised 
definitions of school origination option 1, school origination option 
2, and standard origination for the 1996/1997 academic year. For these 
amendments, the Secretary has decided not to use the negotiated 
rulemaking process to solicit input from the higher education 
community. In the Secretary's opinion, these changes are a positive 
step that allow institutions the flexibility to modify the origination 
process based on their individual needs and capabilities. Because this 
is an improvement over the existing process, schools should be able to 
benefit from these regulatory revisions as soon as possible. The 
majority of the commenters supported the Secretary's proposal to revise 
these definitions of origination criteria.
    Changes: None.

Section 685.208  Repayment Plans, Section 685.210  Choice of Repayment 
Plans, and Section 685.215 Consolidation

    Comments: None of the commenters supported these proposed 
amendments. One commenter argued that borrowers with one FFEL Program 
loan should not be precluded from initially consolidating into the 
Direct Loan Program using the standard repayment plan. The commenter 
felt that a borrower's repayment options should not be limited by the 
number of loans the borrower wishes to consolidate. The commenter also 
asserted that, if the standard repayment plan offered the best terms 
for that Direct Consolidation Loan borrower, that option should be 
available to the borrower.

[[Page 61792]]

    Discussion: The Departmental practice of requiring borrowers who 
consolidate only one FFEL Program loan into the Direct Loan Program to 
initially select a repayment plan other than the standard repayment 
plan had been implemented in response to the concerns of the FFEL 
community. However, none of the commenters wrote in support of this 
provision. Further, the only specific comment addressing this proposal 
was received from a member of the FFEL community, and that commenter 
urged the Secretary to delete this provision.
    Change: Proposed amendments to Secs. 685.208, 685.210 and 685.215 
have been removed.

Section 685.301  Origination of a Loan by a Direct Loan Program School

Section 685.301(a)(5)  Determining Eligibility and Loan Amount

    Comments: Several commenters supported the amendment to clarify the 
date of loan origination. One commenter objected to the Secretary's 
clarification of the date of loan origination for the Direct Loan 
Program. This commenter felt that both the Direct Loan and FFEL 
Programs should establish the same definition for the ``date of 
origination.'' If this is not possible, the commenter suggested the 
Secretary create another term for ``the date of origination'' in the 
Direct Loan Program to avoid possible confusion among Direct Loan and 
FFEL Program participants.
    Discussion: It is important to establish clearly the date of 
origination, because a school may only originate a loan while the 
borrower meets the eligibility requirements. The NPRM proposed that the 
date of loan origination be the earlier of the date the promissory note 
is printed or the date the origination record is accepted by the 
Secretary. Beginning with the 1996-1997 academic year, enhanced loan 
origination software will record the date of origination permanently on 
the borrower's loan file when the borrower's origination record is 
created by the school. Modifying the Direct Loan school software to 
record automatically the date the school creates the origination record 
will ensure that the school is able to document clearly the date that 
it certified a borrower's eligibility for a loan, the loan amount, and 
anticipated disbursement dates. Further, because the electronic 
origination record is created earlier in loan processing than either 
printing the promissory note or the origination record being accepted 
by the Secretary, this change will result in improved service to both 
schools and borrowers. Service to schools is improved because the 
information necessary to document the origination process is 
automatically generated in the student's electronic file; service to 
borrowers is improved by promoting flexibility in processing loans.
    The Secretary is making every effort to ensure conformity between 
the Direct Loan and the FFEL Programs whenever possible. However, there 
is no definition of ``date of origination'' in the FFEL Program. 
Further, the programs operate differently and it is impossible to 
attain absolute conformity between the programs in all aspects. For 
example, loan origination in the Direct Loan Program is similar to 
certification of the loan application in the FFEL Program but because 
of the inherent operational differences between the program, the two 
events are not necessarily identical. In the FFEL Program, school 
officials certify borrower information on a combined application and 
promissory note. In the Direct Loan Program, the application process is 
separate from certification of loan information. Therefore, Direct Loan 
eligibility is certified by means of the electronic origination record 
and a written statement provided by the school after submitting the 
origination record. On the origination record, a school certifies a 
borrower's eligibility, the loan amount, and the anticipated 
disbursement dates. Due to these operational differences, it is not 
appropriate to have the same provision in both loan programs. Further, 
because very few schools participate in both the Direct Loan and FFEL 
Programs, the Secretary does not believe that this terminology will 
cause confusion.
    The Secretary wants to clarify that the use of the phrase ``date of 
loan origination'' in the Direct Loan Program is intended for 
operational purposes only and does not constitute a commitment on the 
part of the Federal Government to make a loan. This distinction is 
important to avoid possible confusion with the use of the term 
``origination'' for Federal budgetary purposes.
    Changes: The regulation has been revised to reflect that the date 
of loan origination is the date a school creates an electronic loan 
origination record.

Section 685.301(d)  Reporting to the Secretary

    Comments: Three commenters felt that the requirement for schools to 
submit the promissory note, disbursement record, and origination record 
no later than 30 days following the date of disbursement of loan funds 
was too restrictive. One of these commenters asked the Secretary to 
reconsider this timeline because the 30-day deadline would be too 
burdensome to adhere to in light of other program requirements, such as 
reconciliation reporting requirements. Another of these commenters 
suggested that the timeline be extended to 45 days to aid financial aid 
administrators during their demanding Fall season. This commenter felt 
that the extra 15 days would make a significant difference in the 
management of financial aid processes.
    Several other commenters strongly endorsed the 30-day reporting 
requirement. They argued that if schools are required to submit these 
documents to the Secretary quickly, borrowers will be better served. 
Additionally, these commenters felt this requirement would result in 
the reconciliation processing working more smoothly and occurring on a 
more timely basis--ultimately leading to better fiscal control over 
federal funds.
    One commenter recommended that regulations be added to limit a 
school's ability to draw down funds until the school had reconciled the 
funds it had already disbursed. Another commenter recommended that, 
even though the commenter supported the 30-day reporting requirement, 
the Secretary should grant schools a brief extension if this 
requirement presents unanticipated compliance difficulties.
    Discussion: The Secretary disagrees with the commenters that assert 
that this requirement is too restrictive and overly burdensome for the 
schools. In previous guidance, the Department has advised all Direct 
Loan schools that they should reconcile and submit all loan origination 
records, promissory notes, and disbursement records on a monthly basis 
[see the April 26, 1994, Announcement of Criteria for Loan 
Origination--1995-1996 Academic Year (59 FR 21804) and Chapter 7 of the 
Direct Loan School Guide]. This requirement is needed to ensure that 
borrowers receive disbursement disclosure information and loan 
servicing information shortly after the loan is disbursed. Further, 
Direct PLUS Loan borrowers enter repayment when the loan is fully 
disbursed and the Department must receive disbursement information in a 
timely manner in order to establish repayment terms. Requiring the 
timely submission of program data by schools to the Direct Loan 
Servicer will enhance the Department's administrative and fiscal 
oversight capabilities and will help ensure that up-to-date data are 
maintained in the National Student Loan Data System.
    After a year of experience in administering the Direct Loan 
Program, 

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the Secretary is convinced that services to borrowers would be 
substantially improved by requiring schools to submit the promissory 
note, disbursement record, and origination record no later than 30 days 
following the date of disbursement of loan funds. The implementation of 
this 30-day requirement is in the best interest of federal taxpayers as 
well as Direct Loan schools. Furthermore, the timely submission of 
origination records, promissory notes, and initial and subsequent 
disbursement records is particularly critical at the end of the Federal 
fiscal year (September 30).
    Ultimately, the result of this requirement will be that borrowers 
will have fewer questions and problems in the initial phase of the loan 
process. Also, schools will benefit from this change because schools 
that do not report disbursements in a timely manner appear to have 
excess cash even when they have properly disbursed funds to borrowers 
in compliance with the cash management regulations. The Secretary is 
confident that the 30-day reporting requirement will help the 
reconciliation process to work more smoothly and on a more timely 
basis, ultimately leading to better fiscal control over federal funds 
and improved services to borrowers.
    The Secretary understands that, particularly for Direct Loan 
schools during their first year of participation in the program, the 
Department may initially need to extend reasonable lenience when 
enforcing this requirement. These schools may need additional time or 
assistance until they become familiar with the Direct Loan processes 
and procedures. Furthermore, the Secretary has already committed to 
current program participants that the Secretary will assist any schools 
having difficulty in complying with this requirement. The Secretary is 
ready to provide technical support to schools and is willing to review 
a school's on-site operations, if requested, to make suggestions 
regarding changes that will enable the school to meet this requirement.
    Based on the comments received on this issue, it appears that some 
commenters are confused about when a borrower receives the disclosure 
of loan information in the Direct Loan Program. Every Direct Loan 
borrower receives disclosure information on the Direct Loan promissory 
note prior to disbursement. The disclosure that is mailed from the 
Direct Loan Servicing Center following any disbursement is in addition 
to the initial disclosure.
    Changes: None.

Executive Order 12866

    These final 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 final regulations are those 
resulting from statutory requirements and those determined by the 
Secretary as necessary for administering this program effectively and 
efficiently.
    In assessing the potential costs and benefits--both quantitative 
and qualitative--of these final regulations, the Secretary has 
determined that the benefits of the 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.

Summary of Potential Costs and Benefits

    The potential costs and benefits of these final regulations are 
discussed elsewhere in this preamble under the following heading: 
Analysis of Comments and Changes.

Assessment of Educational Impact

    In the NPRM, the Secretary requested comments on whether the 
proposed regulations would require transmission of information that is 
being gathered by, or is available from, any other agency or authority 
of the United States.
    Based on the response to the proposed rules and on its own review, 
the Department has determined that the regulations in this document do 
not 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 685

    Administrative practice and procedure, Colleges and universities, 
Education, Loan programs-education, Reporting and recordkeeping 
requirements, Student aid, Vocational education.

(Catalog of Federal Domestic Assistance Numbers: 84.268, William D. 
Ford Federal Direct Loan Program)

    Dated: November 22, 1995.
Richard W. Riley,
Secretary of Education.
    The Secretary amends part 685 of title 34 of the Code of Federal 
Regulations to read as follows:

PART 685--WILLIAM D. FORD FEDERAL DIRECT LOAN PROGRAM

    1. The authority citation for Part 685 continues to read as 
follows:

    Authority: 20 U.S.C. 1087a et seq., unless otherwise noted.

    2. Section 685.102, paragraph (b) is amended by revising the 
definition of ``School origination option 1,'' ``School origination 
option 2,'' and ``Standard origination.''


Sec. 685.102  Definitions.

* * * * *
    (b) * * *
    School origination option 1: In general, under this option the 
school performs the following functions: creates a loan origination 
record, transmits the record to the Servicer, prepares the promissory 
note, obtains a completed and signed promissory note from a borrower, 
transmits the promissory note to the Servicer, receives the funds 
electronically, disburses a loan to a borrower, creates a disbursement 
record, transmits the disbursement record to the Servicer, and 
reconciles on a monthly basis. The Servicer initiates the drawdown of 
funds for schools participating in school origination option 1. The 
Secretary may modify the functions performed by a particular school.
    School origination option 2: In general, under this option the 
school performs the following functions: creates a loan origination 
record, transmits the record to the Servicer, prepares the promissory 
note, obtains a completed and signed promissory note from a borrower, 
transmits the promissory note to the Servicer, determines funding 
needs, initiates the drawdown of funds, receives the funds 
electronically, disburses a loan to a borrower, creates a disbursement 
record, transmits the disbursement record to the Servicer, and 
reconciles on a monthly basis. The Secretary may modify the functions 
performed by a particular school.
* * * * *
    Standard origination: In general, under this option the school 
performs the following functions: creates a loan origination record, 
transmits the record to the Servicer, receives funds electronically, 
disburses funds, creates a disbursement record, transmits the 
disbursement record to the Servicer, and reconciles on a monthly basis. 
The Servicer prepares the promissory note, obtains a completed and 
signed promissory note from a borrower, and initiates the drawdown of 
funds for schools participating in standard 

[[Page 61794]]
origination. The Secretary may modify the functions performed by a 
particular school.

(Authority: 20 U.S.C. 1087a et seq.)

    3. Section 685.201 is amended by revising paragraph (a)(2) 
introductory text, and paragraph (b) to read as follows:


Sec. 685.201  Obtaining a loan.

    (a) * * *
    (2) If the student is eligible for a Direct Subsidized Loan or a 
Direct Unsubsidized Loan, the Secretary or the school in which the 
student is enrolled shall perform specific functions. Unless a school's 
agreement with the Secretary specifies otherwise, the school shall 
perform the following functions:
* * * * *
    (b) Application for a Direct PLUS Loan. To obtain a Direct PLUS 
Loan, the parent shall complete the application and promissory note and 
submit it to the school at which the student is enrolled. The school 
shall complete its portion of the application and promissory note and 
submit it to the Servicer, which makes a determination as to whether 
the parent has an adverse credit history. Unless a school's agreement 
with the Secretary specifies otherwise, the school shall perform the 
following functions: A school participating under school origination 
option 2 shall draw down funds and disburse the funds. For a school 
participating under school origination option 1 or standard 
origination, the Servicer initiates the drawdown of funds, and the 
school disburses the funds.
* * * * *
(Authority: 20 U.S.C. 1087a et seq., 1091a)

    4. Section 685.301 is amended by redesignating paragraphs (a)(5) 
and (a)(6) as paragraphs (a)(6) and (a)(7), respectively, adding a new 
paragraph (a)(5) and by adding a new paragraph (d) to read as follows:


Sec. 685.301  Origination of a loan by a Direct Loan Program school.

    (a) * * *
    (5) The date of loan origination is the date a school creates the 
electronic loan origination record.
* * * * *
    (d) Reporting to the Secretary. (1) A school that originates a loan 
must submit the promissory note, loan origination record, and initial 
and subsequent disbursement records to the Secretary no later than 30 
days following the date of disbursement. A school must submit the loan 
origination record and disbursement record to the Secretary no later 
than 30 days following the date of disbursement for each subsequent 
disbursement.
    (2) A school that participates under standard origination must 
submit the initial and subsequent disbursement record to the Secretary 
no later than 30 days following the date of disbursement. A school must 
submit the disbursement record to the Secretary no later than 30 days 
following the date of disbursement for each subsequent disbursement.

(Authority: 20 U.S.C. 1087a et seq.)

(Approved by the Office of Management and Budget under Control 
Number 1840-0672)

[FR Doc. 95-29126 Filed 11-30-95; 8:45 am]
BILLING CODE 4000-01-P