Session 39

Uncover the Mysteries of How a Law Becomes Operational

Angela Smith

Kevin CampbellBill

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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

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Title IV Federal Student Aid Programs

• Pell Grants

• Campus Based Programs

– FSEOG, FWS, Federal Perkins Loans

• FFELP/FDLP

• ACG/SMART

• Other

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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

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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)

Senate Majority LeaderBill Frist (R, TN)

Speaker of the HouseDennis Hastert (R, IL)

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Leadership in the New Congress

Senator Harry Reid, D. Nevada

Senate Majority Leader

Representative Nancy Pelosi, D. California

Speaker of the House of Representatives

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How the Law is Numbered• P.L. 105-244 (10/7/98) reauthorized the HEA• Title IV, Part G - General Provisions

• Subpart (Arabic numerals when used)• Section 484 - 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)

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Legislative Process

• Authorization Legislation:

– Introduced by a Representative or Senator to amend or create a Federal statute

• Appropriations Legislation:

– Sets annual funding levels for Federal programs

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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

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What is Reauthorization?• 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 virtually all Federal Higher

Education Programs

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Why Reauthorization?• Reauthorization Provides the Opportunity for Thoughtful

Congressional Review

– Public hearings

– More time to consider ideas

– Ability to review fundamental issues• Access

• Choice

• Eligibility

• Subsidies

• Accountability

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Current Reauthorization• Process Underway Since Late 2002• Many Issues Incorporated into Higher Education

Reconciliation Act (HERA)– Loan program extended– Loan limits increased– Origination fees reduced– Graduate students may borrow under the PLUS

program• Other Issues Still Unresolved

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Hand-off to the Executive Branch• Presidential Signature Required on All Changes to

Statute– Date of enactment is

date President signs a bill into law

– President becomes anactive player in shaping final bill

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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 Partner Letters,

forms, Audit Guides

Secretary of EducationMargaret Spellings

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Legislation VS. Regulation• Regulations

– Promulgated by appropriate Federal agency• U.S. Department of Education for Higher Education

Programs

• Reviewed by Office of Management and Budget (OMB)

– Interprets and adds detail to statute

– Amends Code of Federal Regulations (C.F.R.)

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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”

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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

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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, 2006 will be effective on July 1, 2007 for 2007-2008 academic year

– Secretary may permit, but not require, earlier implementation

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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

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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

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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 668.16

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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

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Title IV Guidance: Federal Student Aid Handbook

• Primary resource financial aid administrators

• Provides “plain language” guidance of laws and regulations

• Published annually• Available online or in

hardcopy

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Title IV Guidance: The Blue Book

• Provides guidance to those responsible for managing Title IV FSA program funds (e.g. Business Office, Comptroller’s Office, Treasurer, etc.)

• Available online or in hardcopy

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Title IV Guidance:Dear Colleague/Partner Letters

• Issued by ED to provide additional policy/guidance

– Q&A’s

– Technical information

– Introduce new rules

– Explain rules in existence

– Explain policies

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Title IV Guidance:Dear Colleague/Partner Letters, con’t.

• ANN: Training Announcements

• CB: Campus-based Programs Letters

• GEN: General Distribution Letters

• P: Pell Grant Program

• DLB: Direct Loan Bulletins

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Title IV Guidance:Dear Colleague/Partner Letters, con’t.

• How DCLs/DPLs are numbered example:– CB-06-11: Eleventh Campus-Based DCL

issued in 2006• Recent DCLs/DPLs

–  CB-06-13: 06/07 Supplemental Campus-Based Awards

– ANN-06-10: HERA Workshops– GEN-06-15: National SMART Grant - Revised

List of Eligible Majors

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Title IV Guidance:Electronic Announcements

• Less formal bulletins, memos and letters from Senior FSA staff to assist schools

• Provide updates, guidance, reminders, notices

• Delivered electronically

– Sent to SAIG mailbox

– Listed on IFAP by date

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Where can I find this information?

• IFAP – ifap.ed.gov

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• FAP Portal – fsa4schools.ed.gov

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Federal Student Aid (FSA) Handbook

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Order hardcopies of Handbooks, Blue Books,

CFRs and other items

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What’s Involved? - Review• The Law – Higher Education Act of 1965, as amended

– Created by Congress

• Regulations – implement the Law

– Created by Department of Education (ED) and others

• Dear Partner/Colleague Letters

– Issued by ED to provide additional policy/guidance

• Electronic Announcements

– Less formal information from ED to assist schools

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Legislation and Regulation

Now You’re An Expert!!!

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We appreciate your feedback and comments.We can be reached at:

• Name: Kevin Campbell

• Phone: 214-661-9488

• Fax: 214-661-9662

• Email: kevin.campbell@ed.gov

• Name: Angela Smith

• Phone: 312-886-8341

• Fax: 312-886-6737

• Email: angela.smith@ed.gov