[Federal Register Volume 62, Number 182 (Friday, September 19, 1997)]
[Notices]
[Pages 49414-49416]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-24958]



[[Page 49413]]

_______________________________________________________________________

Part VI





Department of Education





_______________________________________________________________________



Student Assistance General Provisions; Notice

  Federal Register / Vol. 62, No. 182 / Friday, September 19, 1997 / 
Notices  

[[Page 49414]]



DEPARTMENT OF EDUCATION


Student Assistance General Provisions

AGENCY: Department of Education.

ACTION: Notice of deadline dates for institutions to use designated 
electronic processes in order to meet administrative capability 
requirements for participation in the Student Financial Assistance 
Programs authorized by title IV of the Higher Education Act of 1965, as 
amended (HEA).

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SUMMARY: In accordance with the provisions of 34 CFR 668.16(o), the 
Secretary gives notice to institutions of the designated electronic 
processes in which they must participate, and the respective deadline 
dates. Table A provides a listing, with deadline dates, of those 
designated electronic processes. Table B provides institutions with 
technical hardware and software specifications for both current and 
future levels of participation in the designated electronic processes.
    As provided for by the regulation, the Secretary considers an 
institution that fails to participate in one or more of the electronic 
processes listed in this notice by the respective deadline date for 
that process, to lack administrative capability to administer the title 
IV, HEA programs properly.

FOR FURTHER INFORMATION CONTACT:

    1. Title IV Federal Student Aid Program Policy: Jacquelyn C. 
Butler, U.S. Department of Education, 600 Independence Avenue, S.W. 
(ROB-3, Room 3045), Washington, DC 20202-5447. Telephone: (202) 708-
8242.
    2. Title IV Wide Area Network (TIV WAN): Title IV WAN Customer 
Service, P.O. Box 30, Iowa City, IA 52244. Telephone: 1-800-615-1189
    3. ``Info for Financial Aid Professionals'' website or the Student 
Financial Assistance Bulletin Board System (SFA BBS): Customer Support 
Branch, U.S. Department of Education, 600 Independence Avenue, SW. 
(ROB-3, Room 3108A), Washington, DC 20202-5231. Telephone: 1-800-433-
7327.
    4. Electronic Application for Approval to Participate in Federal 
Student Aid Programs: Patricia Patterson, Institutional Participation 
and Oversight Services, U.S. Department of Education, 600 Independence 
Avenue, SW. (ROB-3, Room 3682), Washington, DC 20202-5300. Telephone: 
(202) 260-5742.
    5. Fiscal Operations Report and Application to Participate (FISAP): 
Campus Based Programs State Representatives, Institutional Financial 
Management Division, U.S. Department of Education, 600 Independence 
Avenue, SW. (ROB-3, Room 4714), Washington, DC 20020-5458. Telephone: 
(202) 708-7741.
    6. Federal Pell Grant Reporting: Financial Management Specialists, 
Institutional Financial Management Division, 600 Independence Avenue, 
SW. (ROB-3, Room 4714), Washington, DC 20202-5458. Telephone: (202) 
708-9807.
    7. National Student Loan Data System (NSLDS): F. Lynn Alexander, 
U.S. Department of Education, 600 Independence Avenue, SW. (ROB-3, Room 
4520), Washington, DC 20202-5259. Telephone: (202) 708-8125.
    8. Project EASI (Easy Access for Students and Institutions): Fred 
Sellers, U.S. Department of Education, 600 Independence Avenue, SW. 
(ROB-3, Room 3045), Washington, DC 20202-5447. Telephone: (202) 708-
8242.
    Individuals who use a telecommunications device for the deaf may 
call the Federal Information Relay Service at 1-800-877-8339 between 9 
a.m. and 8 p.m., Eastern Time, Monday through Friday.
    Individuals with disabilities may obtain this document in an 
alternate format (e.g., Braille, large print, audiotape, or computer 
diskette) on request to Vicki Wilson, U.S. Department of Education, 600 
Independence Avenue, SW., (ROB-3, Room 3030), Washington, DC 20202-
5352. Telephone: (202) 708-8619.

SUPPLEMENTARY INFORMATION: On November 29, 1996, the Secretary 
published final regulations in the Federal Register (61 FR 60603) that 
require institutions to participate in the electronic processes that 
the Secretary identifies and provides during a processing year in order 
to improve the delivery of title IV, HEA program funds to students and 
institutions and to protect further the Federal fiscal interest. An 
institution will be able to use software provided by the Secretary or 
software developed by the institution, or its vendor, in accordance 
with specifications provided by the Secretary. The Secretary believes 
that the savings and benefits from improved business processes made 
possible by using these electronic processes will more than offset any 
necessary initial investments by both the Department of Education 
(Department) and by institutions. To achieve these savings and 
benefits, it is essential that, to the extent practicable, electronic 
processes and, in the future, magnetic tape and cartridge data 
submissions, replace paper processes at both the Department and 
institutions. The Secretary also believes that most institutions 
already have the necessary equipment and technical expertise to use 
these processes, and institutions that have to purchase or replace 
equipment to meet the standards will be making an investment that will 
improve their institutional processes at minimal cost.
    The Secretary believes that use of these electronic processes is 
also essential to the implementation of Project EASI. Project EASI is 
an initiative of the Secretary to pursue a collaborative effort among a 
diverse group of government, business, and educational leaders to 
develop an integrated student aid delivery system available not only to 
students and their families but also institutions, State agencies, and 
others.
    As part of Project EASI, the Secretary is joining with other 
partners in the student aid delivery system in the development of data 
standards and standards for electronic transmission of data. Electronic 
data interchange (EDI) standards of the American National Standards 
Institute now exist for numerous applications relevant to the student 
aid delivery system. They include electronic payments, invoices, 
purchase orders, student transcripts, enrollment verifications, student 
loan applications, and transfer and status verifications. Using the EDI 
process, the Secretary with other partners in the student aid delivery 
system, will provide agreed upon data standards that can be updated as 
new needs arise. The Secretary believes that EDI standards are an 
important basis to achieving systems integration and will participate 
in their development and implementation for the title IV, HEA programs. 
Additional information about Project EASI can be found at http://
easi.ed.gov on the Project EASI World Wide Web home page.
    This notice also furthers the implementation of the Secretary's 
initiatives to reduce burden and improve program accountability by 
using electronic processes to achieve an integrated student aid 
delivery system for students and institutions. The Secretary believes 
that using these electronic processes is essential to simplifying 
program administration, improving program accountability, and providing 
institutions with the experience necessary to begin developing an 
expertise in using the electronic processes that the Department 
provides. This expertise is essential to the implementation of 
additional electronic processes that the Secretary expects to use in 
administering the title IV, HEA programs.

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    In order to assist institutions with their implementation of these 
designated processes, the Secretary will be offering a series of 
informational and hands-on training activities. On October 16, 1997, 
the Department will broadcast another in its series of video-
conferences. That video-conference called, ``SFAP Update: The 1998-99 
FAFSA and More,'' will focus on the electronic requirements contained 
in this notice as well as on changes to the federal student aid 
delivery system for the 1998-99 award year. In November and December of 
this year, the Department will, once again, present three on-site 
conferences where institutions can learn about the electronic processes 
required by this notice as well as other electronic services available 
from the Department. The first of these conferences, ``A Second Decade 
of Partnership Through Electronics,'' will be held in St. Paul, 
Minnesota from November 4 through November 6. The second will be in 
Seattle, Washington from November 17 until November 19. The final 
conference will be from December 16 through December 18 in Boston, 
Massachusetts. For additional information on these conferences, visit 
our website at http://edeworkshop.walcoff.com.
    The conference sites are accessible to individuals with 
disabilities. An individual with a disability who will need an 
auxiliary aid or service to participate in the conference (e.g., 
interpreting service, assistive listening device, or materials in an 
alternate format) should notify Vicki Wilson, U.S. Department of 
Education, 600 Independence Avenue, SW., (ROB-3, Room 3030), 
Washington, DC 20202-5352, Telephone: (202) 708-8619, at least two 
weeks before the scheduled conference date. Although the Department 
will attempt to meet a request received after that date, the requested 
auxiliary aid or service may not be available because of insufficient 
time to arrange it.
    Finally, the Department will begin training in February 1998 
throughout the country on ``The Electronic Financial Aid Office'' 
focusing on the uses of electronics in the administration of student 
financial aid programs.

Electronic Access to This Document

    Anyone may view this document, as well as all other Department of 
Education documents published in the Federal Register, in text or 
portable document format (pdf) on the World Wide Web at either of the 
following sites:

http://ocfo.ed.gov/fedreg.htm
http://www.ed.gov/news.html

To use the pdf you must have the Adobe Acrobat Reader Program with 
Search, which is available free at either of the previous sites. If you 
have questions about using the pdf, call the U.S. Government Printing 
Office toll free at 1-888-293-6498.
    Anyone may also view these documents in text copy only on an 
electronic bulletin board of the Department. Telephone: (202) 219-1511 
or, toll free, 1-800-222-4922. The documents are located under Option 
G--Files/Announcements, Bulletins and Press Releases.

    Note: The official version of this document is the document 
published in the Federal Register.

Table A: Designated Processes and Deadline Dates

    This table provides a listing of the electronic processes, and 
their respective deadline dates, in which institutions must participate 
in order to be considered administratively capable to participate in 
the Title IV student assistance programs. The Secretary will provide 
additional details on these requirements in a letter that will be sent 
to all participating institutions.

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                     Deadline date                                   Designated electronic processes            
----------------------------------------------------------------------------------------------------------------
January 1, 1998........................................  1. Participate in the Title IV Wide Area Network (TIV  
                                                          WAN).                                                 
                                                         2. For the 1998-99 Processing Year \1\ and Beyond:     
                                                           a. Receipt of Institutional Student Information      
                                                          Records (ISIRs).\2\                                   
                                                           b. Adding Your Institution to the Central Processing 
                                                          System Record (CPS).                                  
                                                           c. On-line Access to the National Student Loan Data  
                                                          System (NSLDS).                                       
July 1, 1998...........................................  1. Access to the ``Info for Financial Aid              
                                                          Professionals'' website or the Student Financial      
                                                          Assistance Bulletin Board System (SFA BBS).           
                                                         2. Submission of the Application for Approval to       
                                                          Participate in Federal Student Aid Programs           
                                                          (recertification, reinstatement, and changes) through 
                                                          the Internet.                                         
                                                         3. Submission of the Fiscal Operations Report and      
                                                          Application to Participate (FISAP) to the Title IV    
                                                          Wide Area Network (TIV WAN). Diskettes will be        
                                                          eliminated.                                           
July 1, 1999...........................................  1. For the 1999-2000 Award Year and Beyond:            
                                                           Report Federal Pell Grant Payments Electronically or 
                                                          on Magnetic Tape or Cartridge to the Title IV Wide    
                                                          Area Network (TIV WAN). Diskettes will be eliminated. 
                                                         2. Submit Student Status Confirmation Report (SSCR)    
                                                          data Electronically or on Magnetic Tape or Cartridge  
                                                          to the National Student Loan Data System (NSLDS).     
                                                          Diskettes will be eliminated.                         
                                                         3. Submit Federal Perkins Loan Data Electronically or  
                                                          on Magnetic Tape or Cartridge to the National Student 
                                                          Loan Data System (NSLDS). Diskettes will be           
                                                          eliminated.                                           
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\1\ The application processing cycle lasts 18 months. For the 1998-99 award year, application processing begins 
  in January 1998 and applications for that year will be accepted until June 30, 1999. (See The 1997-98         
  Counselor's Handbook for Postsecondary Schools, page 19.)                                                     
\2\ The Secretary realizes that processing title IV aid upon the receipt of an ISIR, rather than the paper      
  Student Aid Report (SAR), may be new for some institutions. In order to provide these institutions sufficient 
  time to implement electronic procedures to receive ISIRs, the Secretary will not assess any penalties against 
  an institution that is not able to comply with this requirement on January 1, 1998. However, beginning July 1,
  1998, all institutions are expected to be receiving ISIRs electronically for any title IV applicant who has   
  listed that institution on the applicant record in the CPS.                                                   

Technical Specifications

    The technical specifications table that follows provides 
institutions with information regarding hardware and software 
requirements that will enable them to participate in these designated 
electronic processes. Some of the specifications, while not needed to 
meet the current requirements designated in this notice, will be 
required in future years as the title IV student aid programs delivery 
system is upgraded and enhanced. Therefore, institutions should include 
in their automated data processing budgets, on a regular basis, plans 
for upgrades and enhancements to their systems.
    The table includes two columns of specifications. The left column 
provides information on the current minimum configuration needed in 
order for an

[[Page 49416]]

institution to maintain a basic level of electronic efficiency. The 
right column provides information on the configuration that will be 
needed to support the electronic requirements beginning in January 1999 
as designated in this notice. Although many institutions are able to 
participate electronically using the current minimum configuration, it 
is recommended that institutions that need to acquire resources in 
order to meet the requirements of this notice invest in the equipment 
and software that will be needed in the future (January 1999). Schools 
that currently participate electronically should prepare to upgrade 
their equipment and software in time to meet the January 1999 
requirements. When reviewing these specifications, institutions should 
be aware that capacity requirements (processor speed, RAM, hard drive 
storage, etc.) are greatly affected by specific factors at each 
institution, including which EDExpress functions the school uses, 
number of records processed, and institutional database interfaces.
    Finally, institutions should particularly note that, beginning on 
January 1, 1999, for the 1999-2000 processing year, the Department's 
electronic processes will require a Windows 95 or Windows NT operating 
system. Neither the Disk Operating System (DOS) or earlier versions of 
Windows will be supported.

                                       Table B.--Technical Specifications                                       
----------------------------------------------------------------------------------------------------------------
                                                 Current minimum configuration                                  
                                                  (depending upon volume and      Minimum configuration required
                                                            usage)                       by January 1999        
----------------------------------------------------------------------------------------------------------------
Equipment....................................  IBM or fully IBM-compatible PC..  IBM or fully IBM-compatible PC.
                                               66 MHz Processor 486DX2.........  200 MHz Pentium Processor or   
                                                                                  comparable.                   
                                               16MB RAM........................  64MB RAM.                      
                                               300MB Hard Disk Space...........  4.0 GB SCSI Hard Drive.        
                                               14,400 bps or higher baud Hayes   56K Analog Modem.              
                                                or comparable Modem.                                            
                                               3.5''/1.44MB Diskette Drive.....  3.5''/1.44MB Diskette Drive.   
                                               SVGA Monitor....................  SVGA Monitor.                  
                                               Standard Keyboard...............  Windows 95 Keyboard.           
                                               Printer capable of printing on    Laser printer capable of       
                                                standard paper (8\1/2\'' x        printing on standard paper    
                                                11'').                            (8\1/2\'' x 11'').            
                                               4x CD-ROM Drive with sound board  12x CD-ROM Drive with sound    
                                                *.                                board.*                       
Software.....................................  MS-DOS version 6.2 or higher;     32 bit operating system        
                                                Windows 3.1, 3.11 or 95.          (Windows 95 or Windows NT     
                                                                                  4.x).                         
                                               Internet Service Provider         Internet Service Provider      
                                                (ISP).**.                         (ISP).**                      
                                               Netscape Navigator 3.0 or 3.01    Netscape Navigator 3.0 or 3.01 
                                                (domestic) or web browser. ***.   (domestic) or web browser.*** 
Phone Line...................................  Dedicated phone line............  Dedicated phone line.          
Diskettes....................................  3.5'' high-density double-sided   3.5'' high-density double-sided
                                                diskettes.                        diskettes.                    
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* Required if institutions want to use the EDExpress Tutorial and the AWARE software.                           
** Will be necessary to access the ``Info for Financial Aid Professionals'' website or the Student Financial    
  Assistance Bulletin Board System and for submission of the Application for Approval to Participate in Federal 
  Student Aid Programs (recertification, reinstatement, and changes).                                           
*** Must use Netscape Navigator 3.0 or 3.01 (domestic) in order to utilize FAFSA on the web.                    

Applicable Regulation

    The regulation applicable to this notice is the Student Assistance 
General Provisions, 34 CFR part 668.

(Authority: 20 U.S.C. 1082, 1085, 1094, 1099c)

    Dated: September 9, 1997.
David A. Longanecker,
Assistant Secretary for Postsecondary Education.
[FR Doc. 97-24958 Filed 9-18-97; 8:45 am]
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