[Federal Register Volume 68, Number 37 (Tuesday, February 25, 2003)]
[Notices]
[Pages 8746-8747]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-4392]


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DEPARTMENT OF EDUCATION


Student Assistance General Provisions

AGENCY: Department of Education.

ACTION: Notice of implementation of electronic delivery of school 
cohort default rate data for institutions located in the United States.

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SUMMARY: The Secretary gives notice of the implementation of electronic 
delivery of cohort default rate notification packages to institutions 
located in the United States (domestic institutions) that participate 
in the Federal student aid programs authorized under Title IV of the 
Higher Education Act of 1965, as amended. This notice concerns 
electronic processes related to cohort default rates calculated for 
institutions participating in the Federal Family Education Loan (FFEL) 
Program, the William D. Ford Federal Direct Loan (Direct Loan) Program, 
or both. It does not apply to cohort default rates calculated for the 
Federal Perkins Loan Program.
    Domestic schools must participate in this new electronic process by 
June 1, 2003. After that date, and except in the case of a technical 
problem caused by the U.S. Department of Education (Department) as 
described below, the electronic process will be the sole means by which 
the Secretary provides notice to domestic schools of their draft and 
official cohort default rates and underlying data. While participation 
in the electronic process by domestic schools is mandatory as of June 
1, 2003,

[[Page 8747]]

we will begin electronic distribution of cohort default rate 
notifications with the fiscal year (FY) 2001 draft rates in February 
2003, for schools that by then have registered for the new service, as 
described below.

FOR FURTHER INFORMATION CONTACT: Kriste Jordan, Default Management, 
Schools Channel, Federal Student Aid, U.S. Department of Education, 
Union Center Plaza, 084B4, 830 First Street, Washington, DC 20002. 
Telephone: (202) 377-3191, FAX (202) 275-4511.
    If you use a telecommunications device for the deaf (TDD), you may 
call the Federal Information Relay Service (FIRS) at 1-800-877-8339.
    Individuals with disabilities may obtain this document in an 
alternative format (e.g., Braille, large print, audiotape, or computer 
diskette) on request to the program contact person listed under FOR 
FURTHER INFORMATION CONTACT.

SUPPLEMENTARY INFORMATION: Beginning with the release of fiscal year 
(FY) 2001 draft cohort default rates in February 2003, we will 
electronically transmit draft and official cohort default rate 
notification packages to domestic institutions using our Student Aid 
Internet Gateway (SAIG). The electronic delivery of cohort default rate 
information to domestic institutions will replace the current process, 
which involves delivery of hardcopy documents. Foreign schools (i.e., 
schools eligible to participate in the Federal Family Education Loan 
Program under section 102(a)(1)(C) of the Higher Education Act of 1965, 
as amended) are not subject to participation in this electronic 
process. Foreign schools will continue to receive their cohort default 
rate notification documents in hardcopy rather than electronically. 
Foreign schools' rights to appeal, make challenges and seek adjustments 
will continue to run from the date of receipt of the hardcopy, as they 
have in the past.
    For each electronic distribution of default rate notifications 
(draft and official) to domestic institutions, we will announce on our 
Information for Financial Aid Professionals (IFAP) Web site (http://www.ifap.ed.gov) the date of the electronic transmission of cohort 
default rate information to the destination points designated by each 
domestic institution. Except as described in the following paragraph, 
the time periods for making appeals and challenges and seeking 
adjustments under 34 CFR part 668, subpart M will begin with the sixth 
business day after the date the default rate notification packages were 
transmitted to the SAIG destination points, as noted in the IFAP 
announcement.
    If an institution believes that a technical problem that was caused 
by the U.S. Department of Education (Department) resulted in the 
institution not being able to access its electronic cohort default rate 
information, it must notify us no later than five business days after 
the transmission date announced on IFAP. By doing so and if we agree 
that the problem was caused by the Department, we will extend the 
challenge, appeal, and adjustment deadlines and timeframes to account 
for a re-transmission of the information after the technical problem is 
resolved. Reports of technical problems must be made via e-mail and 
addressed to our Default Management sharepost at: fsa.schools. 
default.management@[chyph]ed.gov.
    Each institution is responsible for updating its SAIG enrollment 
whenever a change is needed to its cohort default rate notification 
package destination point. Failure of an institution to enroll in or 
update SAIG for the eCDR process does not constitute a valid, timely 
technical problem that would extend timeframes or deadlines for 
appeals, challenges, and adjustments.
    To implement the electronic process, every domestic school must, no 
later than June 1, 2003, designate an SAIG destination point that will 
receive the institution's electronic cohort default rate (eCDR) 
notification packages. The designation of the eCDR destination point 
must be conducted through the SAIG enrollment process at: http://www.sfawebenroll.ed.gov.
    In addition, before eCDR functionality can be provided to the 
designated SAIG destination point each institution must submit, by June 
1, 2003, a hardcopy SAIG signature page signed by the institution's 
Chief Executive Officer (CEO) (e.g., President, Chancellor, Owner) or 
the person previously designated by the CEO as the institution's SAIG 
signature authority.
    Once SAIG enrollment is completed, the institution's designee will 
receive electronic school cohort default rate notification packages 
unless the school changes the designee by submitting a revision to its 
SAIG enrollment.

Electronic Access to This Document

    You may view this document, as well as all other Department of 
Education documents published in the Federal Register, in text or Adobe 
Portable Document Format (PDF) on the Internet at the following site: 
http://www.ed.gov/legislation/FedRegister.
    To use the PDF you must have the Adobe Acrobat Reader, which is 
available free at this site. If you have questions about using the PDF, 
call the U.S. Government Printing Office (GPO); toll free, at 1-888-
293-6498; or in the Washington, DC area at (202) 512-1530.
    You may also view this document in PDF at the following site: 
ifap.ed.gov.

    Note: The official version of this document is the document 
published in the Federal Register. Free Internet access to the 
official edition of the Federal Register and the Code of Federal 
Regulations is available on GPO Access at: http://www.access.gpo.gov/nara/index.html.


    Program Authority: 20 U.S.C. 1085, 1094, 1099c.
    Dated: February 20, 2003.
Sally L. Stroup,
Assistant Secretary, Office of Postsecondary Education.
[FR Doc. 03-4392 Filed 2-24-03; 8:45 am]
BILLING CODE 4000-01-P