Uncover the Mysteries of the Law and Regulations Devin Croft Margaret Day

2 What’s Important? How Does a Bill Become a Law? Laws VS. Regulations What's the Federal Register? What's the Blue Book? What is meant by “Guidance"? Finding Answers Using the Federal Student Aid Handbook and Dear Colleague Letters

3 Title IV Federal Student Aid Programs Pell Grants ACG & National SMART Grant Campus Based Programs  FSEOG, FWS, Federal Perkins Loans FFELP/FDLP

4 Who’s Responsible? Congress  Creation and modification of programs  Need analysis formula  Maximum grant and loan amounts  Amount of funding  Executive Branch  Cash management  Audit criteria  Enforcement (L, S & T)  FAFSA design  Reporting requirements

5 Legislation VS. Regulation Legislation  Congress Adopts with presidential signature or after overriding a veto  Amends the U.S. Code -- the statute (e.g., Higher Education Act)  Public Laws (108-XX)

6 How the Law is Numbered P.L (10/7/98) reauthorized the HEA Title IV, Part G - General Provisions Subpart (Arabic numerals when used) Section Student Eligibility Subsection (c) - Satisfactory Progress –Paragraph (1) –Subparagraph (A) –Division - lower case Roman - (i), (ii), (iii) –Clause - upper case Roman - (I), (II), (III) Example: Sec. 484(c)(1)(A)

7 Legislative Process Authorizing Legislation:  Introduced by a Representative or Senator to amend or create a federal statute Appropriating Legislation:  Sets annual funding levels for federal programs

8 Legislative Process Applied to HEA Authorizing Legislation  Established HEA of 1965 as amended  Reauthorization changes/renews authorizing legislation approximately every 5 years Appropriating Legislation  Annually funds programs  Budget bills

9 What is Reauthorization? Process of “reauthorizing” or continuing the existing law Reauthorization of the Higher Education Act of 1965, as amended  Originally enacted as part of President Johnson’s “Great Society” programs  Authorizations “sunset” and must be renewed  Authorizes all federal Higher Education Programs

10 Why Reauthorization? Reauthorization provides the opportunity for Congressional review  Public hearings  More time to consider ideas  Ability to review fundamental issues  Access  Choice  Eligibility  Subsidies  Accountability

11 Hand-off to the Executive Branch Presidential signature required on all changes to the law –Date of enactment is the date that the President signs a bill into law

12 Hand-off to the Executive Branch Executive Branch must execute and enforce Laws  Statutory language may be vague  Congress may direct that regulations be written or may prohibit regulation  Regulations are the primary vehicles that executive branch agencies use to interpret and enforce statutes  Sub-Regulatory guidance includes Dear Colleague Letters, forms, Audit Guide

13 Legislation VS. Regulation Regulations  Promulgated by appropriate federal agency U.S. Department of Education Reviewed by Office of Management and Budget (OMB)  Interprets and adds detail to statute  Amends Code of Federal Regulations (C.F.R.)

14 Regulatory Process Negotiated Rulemaking (Neg-Reg)  Mandated by the Higher Education Act (HEA)  All rules implementing changes to the Higher Education Act, and revisions to regulations, are subject to this process  Secretary consults with the “community”

15 Regulatory Process New/amended regulations initially published in the Federal Register  Notice of Proposed Rulemaking (NPRM) Comment periods 30, 45, 60, or 120 days  Final Rules Effective date 45-days following publication or Later date published in Federal Register  Notices Regulations compiled once a year

16 Regulatory Process - Master Calendar Rules must be published by the preceding November 1 to be effective for an academic year  Example: rules published by November 1, 2007 will be effective on July 1, 2008 for award year  Secretary may permit earlier implementation

17 Title IV Regulations - Federal Register The official daily compilation of federal regulations and notices prepared by the NARA; published by GPO Available on online or in hardcopy

18 Title IV Regulations - Code of Federal Regulations Codification of the regulations Divided into 50 titles; Title 34 governs federal financial aid Updated once each calendar year Available online or in hardcopy

19 How Regulations Are Numbered Title - 34 Part – numbers 600 thru 694 Subpart – numbers following the decimal point Section – small letter, e.g. (a) Explanatory Subsections –(1)(i)(A) Example: the Standards of Administrative Capability Regulatory Cite is 34 CFR

20 Guidance vs. Laws and/or Regulations Guidance is information that provides direction or advice as to a decision or course of action Guidance, as related to the Title IV programs, is  Issued by ED  Helps financial aid administrators interpret laws/regs  Administered in several different forms

21 Title IV Guidance - FSA Handbook Primary resource for financial aid administrators Provides “plain language” explanation of laws and regulations Published annually Available online or in hardcopy

22 Title IV Guidance - The Blue Book Primary resource for school Business Office Available online or in hardcopy

23 Title IV Guidance - Dear Colleague Letters Issued by ED to provide additional policy/guidance  Q&A’s  Technical information  Introduce new rules  Explain rules in existence  Explain policies

24 Dear Colleague Letter Numbering  ANNTraining Announcements  CBCampus-based Programs  FPFinancial Partners (FFEL lenders & guarantee agencies)  GENGeneral Distribution  PPell Grant Program  DLBDirect Loan Bulletins

Dear Colleague Letter Numbering GEN GEN = type of letter 07 = calendar year 02 = number of letter in that calendar year Second GEN letter in 2007

26 Title IV Guidance - Electronic Announcements Less formal memos/letters from Senior FSA staff to assist schools Provide updates, guidance, reminders, notices Delivered electronically  Sent to SAIG mailbox  Listed on IFAP by date

27 Where can I find this information? IFAP –ifap.ed.gov FAP Portal – fsa4schools.ed.gov

28 Federal Student Aid (FSA) Handbook

29 Order hardcopies of Handbooks, Blue Books, CFRs and other items

30 What’s Involved? - Review The Law – Higher Education Act of 1965, as amended  Created by Congress Regulations – implement the Law  Created by ED through negotiated rulemaking process Dear Colleague Letters  Issued by ED to provide additional policy/guidance Electronic Announcements  Less formal information from ED to assist schools

31 Legislation and Regulation Now You’re An Expert!!!

32 Contacts Margaret Day Phone: (303) ext We appreciate your feedback and comments. We can be reached at: Devin Croft Phone: (303) ext

33 Please provide any comments regarding this training or the trainers to: Jo Ann Borel Title IV Training Supervisor