[Federal Register Volume 85, Number 117 (Wednesday, June 17, 2020)]
[Rules and Regulations]
[Pages 36494-36504]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-12965]
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DEPARTMENT OF EDUCATION
34 CFR Part 668
[Docket ID ED-2020-OPE-0078]
RIN 1840-ZA04
Eligibility of Students at Institutions of Higher Education for
Funds Under the Coronavirus Aid, Relief, and Economic Security (CARES)
Act
AGENCY: Office of Postsecondary Education, Department of Education.
ACTION: Interim final rule.
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SUMMARY: The Department of Education (Department) issues this interim
final rule so that institutions of higher education may appropriately
determine which individuals attending their institution are eligible to
receive emergency financial aid grants to students under the
Coronavirus Aid, Relief, and Economic Security (CARES) Act (March 27,
2020).
DATES: These regulations are effective June 17, 2020. We must receive
your comments on or before July 17, 2020.
ADDRESSES: Submit your comments through the Federal eRulemaking Portal
or via postal mail, commercial delivery, or hand delivery. We will not
accept comments submitted by fax or by email or those submitted after
the comment period. To ensure that we do not receive duplicate copies,
please submit your comments only once. In addition, please include the
Docket ID at the top of your comments.
If you are submitting comments electronically, we strongly
encourage you to submit any comments or attachments in Microsoft Word
format. If you must submit a comment in Adobe Portable Document Format
(PDF), we strongly encourage you to convert the
[[Page 36495]]
PDF to print-to-PDF format or to use some other commonly used
searchable text format. Please do not submit the PDF in a scanned
format. Using a print-to-PDF format allows the Department to
electronically search and copy certain portions of your submissions.
Federal eRulemaking Portal: Go to www.regulations.gov to
submit your comments electronically. Information on using
regulations.gov, including instructions for accessing agency documents,
submitting comments, and viewing the docket, is available on the site
under ``Help.''
Postal Mail, Commercial Delivery, or Hand Delivery: The
Department strongly encourages commenters to submit their comments
electronically. However, if you mail or deliver your comments about the
interim final rule, address them to Gaby Watts, U.S. Department of
Education, 400 Maryland Ave. SW, Room 258-02, Washington, DC 20202.
Privacy Note: The Department's policy is to make comments received
from members of the public available for public viewing on the Federal
eRulemaking Portal at www.regulations.gov. Therefore, commenters should
include in their comments only information that they wish to make
publicly available.
FOR FURTHER INFORMATION CONTACT: For further information contact Gaby
Watts, U.S. Department of Education, 400 Maryland Ave. SW, Room 258-02,
Washington, DC 20202. Telephone: 202-453-7195. Email:
Gaby.Watts@ed.gov.
If you use a telecommunications device for the deaf (TDD) or a text
telephone (TTY), call the Federal Relay Service (FRS), toll-free, at
(800) 877-8339.
SUPPLEMENTARY INFORMATION:
Invitation to Comment: Although the Department has decided to issue
this final rule without first publishing a proposed rule for public
comment, we are interested in whether you think we should make any
changes to this rule. We invite your comments. We will consider these
comments in determining whether to revise the rule.
We invite you to assist us in complying with the specific
requirements of Executive Orders 12866 and 13563 and their overall
requirement of reducing regulatory burden that might result from this
final rule. Please let us know of any further ways we could reduce
potential costs or increase potential benefits while preserving the
effective and efficient administration of the Department's programs and
activities.
During and after the comment period, you may inspect all public
comments about this interim final rule by accessing Regulations.gov.
Due to the current COVID-19 pandemic, the Department's buildings are
currently not open. However, upon reopening, you may also inspect the
comments in person at 400 Maryland Ave. SW, Washington, DC 20202,
between 8:30 a.m. and 4:00 p.m., Eastern Time, Monday through Friday of
each week except Federal holidays. To schedule a time to inspect
comments, please contact the person listed under FOR FURTHER
INFORMATION CONTACT.
Assistance to Individuals with Disabilities in Reviewing the
Rulemaking Record: On request, we will provide an appropriate
accommodation or auxiliary aid to an individual with a disability who
needs assistance to review the comments or other documents in the
public rulemaking record for this interim final rule. To schedule an
appointment for this type of accommodation or auxiliary aid, please
contact the person listed under FOR FURTHER INFORMATION CONTACT.
Background:
On March 27, 2020, Congress enacted the CARES Act, Public Law 116-
136, to help Americans cope with the economic and health crises created
by the novel coronavirus disease (COVID-19) outbreak. Section 18004 of
the CARES Act establishes the Higher Education Emergency Relief Fund
(HEERF) and instructs the Secretary to allocate funding to eligible
institutions of higher education in connection with the COVID-19
outbreak. Section 18004(c) specifically allows institutions to use
their HEERF allocation under Sec. 18004(a)(1) for ``any costs
associated with significant changes to the delivery of instruction due
to the coronavirus,'' while adding the restriction that funds cannot be
used for ``payment to contractors for the provision of pre-enrollment
recruitment activities; endowments; or capital outlays associated with
facilities related to athletics, sectarian instruction, or religious
worship.'' Section 18004(c) also states that institutions must use at
least 50 percent of their allocations ``to provide emergency financial
aid grants to students for expenses related to the disruption of campus
operations due to coronavirus (including eligible expenses under a
student's cost of attendance, such as food, housing, course materials,
technology, health care, and child care),'' implicitly allowing
institutions to use more than 50 percent of their funds for this
purpose. Thus, the first sentence of section 18004(c) generally allows
an institution to use its allocated HEERF funds under section
18004(a)(1) to cover certain coronavirus-related costs, while the
second sentence requires an institution to give at least half of its
allocated HEERF funds as grants to students. Finally, section 18004(e)
requires institutions to submit reports to the Secretary describing how
the funds were used under the section and authorizes the Secretary to
specify the time and manner of such reporting.
Although the second sentence of section 18004(c) states that the
emergency financial aid grants are to be given to students, the CARES
Act does not define the term ``student'' or the phrases ``grants to
students'' or ``emergency financial aid grants to students.'' In
addition to leaving these terms undefined, Congress also included an
implicit reference to title IV terms immediately after the phrase
``emergency financial aid grants to students,'' 18004(c) (``including
eligible expenses under a student's cost of attendance''), and explicit
references to that same title IV standard following the phrase ``grants
to students'' in two of the preceding subsections, 18004(a)(2) and
(a)(3) (``the student's cost of attendance (as defined under section
472 of the Higher Education Act''). In determining who constitutes a
``student'' for purposes of ``emergency financial aid grants to
students'' in section 18004 of the CARES Act, the Department is mindful
that ``[s]tatutory construction . . . is a holistic endeavor.'' United
Sav. Ass'n of Texas v. Timbers of Inwood Forest Assocs., Ltd., 484 U.S.
365, 371 (1988). In the appropriate circumstances, the Department's
construction of the CARES Act must be informed or even controlled by
other relevant law. (``We assume that Congress is aware of existing law
when it passes legislation,'' Hall v. United States, 566 U.S. 506, 516
(2012) quoting Miles v. Apex Marine Corp., 498 U.S. 19, 32 (1990).) In
context the category of ``student'' recipients eligible for ``emergency
financial aid grants'' is therefore at a minimum ambiguous.
This is a critical ambiguity, requiring the Department to exercise
its narrow interpretative authority under Chevron U.S.A., Inc. v.
Natural Res. Def. Council, Inc., 467 U.S. 837, 843-44 (1984). (`` `The
power of an administrative agency to administer a congressionally
created . . . program necessarily requires the formulation of policy
and the making of rules to fill any gap left, implicitly or explicitly,
by Congress.' quoting Morton v. Ruiz, 415 U.S. 199, 231 (1974). . . .
Sometimes the legislative delegation to an agency on a particular
question is implicit rather than explicit.'') Here the Secretary
[[Page 36496]]
exercises her authority under 20 U.S.C. 1221e-3 and 20 U.S.C. 3474.
Relying on statutory language and context to develop a harmonious
construction faithful to the entire statutory scheme, see Food and Drug
Admin. v. Brown & Williamson Tobacco Corp., 529 U.S. 120, 132-33 (2000)
(``In determining whether Congress has specifically addressed the
question at issue, a reviewing court should not confine itself to
examining a particular statutory provision in isolation. The meaning--
or ambiguity--of certain words or phrases may only become evident when
placed in context.''), we have concluded that Congress intended the
category of those eligible for ``emergency financial aid grants to
students'' in section 18004 of the CARES Act to be limited to those
individuals eligible for title IV assistance.
The Department considered a number of factors in reaching this
conclusion. For one, an interpretation of the term ``student'' in
``emergency financial aid grants to students'' that was broad enough to
cover anyone engaged in learning, or anyone enrolled in any way at an
institution, or anyone enrolled full-time at an institution in a
program leading to a recognized postsecondary credential, would be
significantly curtailed at the outset by existing law independent of
title IV with regard to certain immigration statuses. 8 U.S.C. 1611(a)
already prohibits certain individuals from receiving any ``Federal
public benefit'' and applies ``[n]otwithstanding any other provision of
law.'' This prohibition clearly applies to the HEERF funds. Section
1611(c) defines ``Federal public benefit'' to include (A) ``any grant .
. . provided by an agency of the United States or by appropriated funds
of the United States,'' as well as (B) ``any . . . postsecondary
education . . . benefit . . . for which payments or assistance are
provided to an individual . . . by an agency of the United States or by
appropriated funds of the United States.'' \1\ To the extent an
institution uses HEERF funds, which qualify as ``appropriated funds of
the United States,'' to provide ``emergency financial aid grants to
students,'' the grants would qualify as a Federal public benefit under
both Section 1611(c)(1)(A) and (B) because they would be ``grant[s] . .
. by appropriated funds,'' as well as ``postsecondary education''
benefits to individuals. To the extent an institution otherwise uses
the funds to make payments to students for purposes of, for example,
``costs associated with significant changes to the delivery of
instruction due to the coronavirus,'' these payments would also qualify
as ``postsecondary education'' benefits to individuals. The Department
has not identified any specific language in Section 18004, or elsewhere
in the CARES Act, that suggests Congress intended to include aliens who
are not ``qualified'' for purposes of Section 1611 among the recipients
of HEERF funds, notwithstanding the preexisting general prohibition in
Section 1611.
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\1\ Because title IV also contains an eligibility requirement
based on immigration status which is similar in most respects to the
requirement in 8 U.S.C. 1611, there is little remaining application
for the prohibition in 8 U.S.C. 1611 once title IV eligibility
requirements have been applied.
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On the other extreme, the Department concludes that a more narrow
interpretation of the term ``student'' in the phrase ``emergency
financial aid grants to students''--for example, to cover only the
group that received Federal Pell Grants as referenced in section
18004(a)(1)(A)--would be overly restrictive and less supportable under
the language of the CARES Act.
Earlier in the CARES Act, in section 3504 entitled ``Use of
Supplemental Educational Opportunity Grants for Emergency Aid,''
Congress expressly authorizes institutions to use money allocated to
them under the Federal Supplemental Educational Opportunity Grant
(FSEOG) program, 20 U.S.C. 1070b et seq., for ``emergency financial aid
grants to students,'' which is the identical phrase Congress used in
section 18004. Although Congress did not expressly state that these
emergency financial aid grants to students must be limited to those
students who are eligible for participation in programs under title IV
of the HEA, the context indicates that Congress intended that
restriction as a general rule. Not only was the previously planned use
of the funds conditioned upon title IV eligibility (since the FSEOG
program is part of title IV of the HEA) but also because the text of
the CARES Act allows institutions to ``waive the amount of need
calculation under section 471'' of the HEA, which is a calculation that
applies to title IV aid.
Because ``identical words and phrases within the same statute
should normally be given the same meaning,'' Powerex Corp. v. Reliant
Energy Services, Inc., 551 U.S. 224, 232 (2007), the implicit title IV
eligibility requirement associated with ``emergency financial aid
grants to students'' in section 3504 should apply to the distribution
of ``emergency financial aid grants to students'' in section 18004.
Congress did not previously choose to provide emergency financial aid
grants through the HEA, and thus these grants, by definition, do not
constitute Federal financial student aid under the HEA, including title
IV of the HEA. However, even though it is true that all title IV aid is
subject to title IV eligibility requirements, it does not follow that
all non-title IV aid is exempt from title IV eligibility requirements.
Rather, non-title IV aid can be subject to title IV eligibility
requirements. For example, scholarships distributed under the Fund for
the Improvement of Postsecondary Education, a non-title IV program,
require that recipients meet certain title IV eligibility requirements,
as noted below. 20 U.S.C. 1138(d).
In providing emergency financial aid grants through section 18004
of the CARES Act, Congress also used the framework under title IV of
the HEA for the distribution of these emergency financial aid grants to
students, implying that the Department and institutions adhere to the
requirements under title IV, such as using the definition of ``cost of
attendance'' under title IV of the HEA and the same systems for
distributing Federal financial student aid to institutions under title
IV of the HEA.
Indeed, Congress specifically references title IV of the HEA in
various provisions in section 18004 of the CARES Act, including the
following provisions:
Section 18004(a)(1) links a component of the institutional
allocation for HEERF to enrollment of Pell Grant recipients, and a
student must be eligible for Federal financial student aid under
section 484 of title IV of the HEA to receive Pell Grants. 20 U.S.C.
1070a(a) (stating Pell Grants are only for an ``eligible student
(defined in accordance with [S]ection 484 [of the HEA])''); 20 U.S.C.
1091.
Sections 18004(a)(2) and (3) require institutions to use
funds ``for grants to students for any component of the student's cost
of attendance (as defined under Sec. 472 of [title IV of] the Higher
Education Act), including food, housing, course materials, technology,
healthcare, and child care.'' (Emphasis added.)
Section 18004(a)(3) specifically references ``part B of
title VII of the HEA,'' and section 741(d)(1) of part B of title VII of
the HEA expressly requires students to be eligible under section 484(a)
of the HEA to receive grants or scholarships. 20 U.S.C. 1138(d).
Section 18004(b) expressly requires the Secretary to use
the same systems that are used to distribute funding to each
institution under title IV of the HEA in order to distribute funds to
each institution under section 18004(a)(1) of the CARES Act.
[[Page 36497]]
Section 18004(c) again expressly refers to ``a student's
cost of attendance,'' which is a defined term in section 472 of the
HEA. 20 U.S.C. 1087ll.
The most congruent definition of ``student'' for purposes of
``emergency financial aid grants to students'' in section 18004 is a
person who is or would be eligible under section 484 of the HEA for
title IV aid. Indeed, it would be an illogical result for Congress to
require students to be eligible under section 484 of title IV of the
HEA for grants under section 18004(a)(3) of the CARES Act, which
expressly references part B of title VII of the HEA, but not for grants
under sections 18004(a)(1) and (2) of the CARES Act, especially when
Congress in section 18004(d) directs the Secretary to prioritize funds
under section 18004(a)(3) for institutions that did not receive
sufficient funding under section 18004(a)(1) and (2). ``Interpretations
of statute which would produce absurd results are to be avoided.''
Griffin v. Ocean Contractors, Inc., 458 U.S. 564, 576 (1982). To
interpret section 18004 in a holistic manner, it appears that the best
interpretation of ``student'' where section 18004 references
``emergency financial aid grants to students'' is to mean a person who
is eligible under section 484 of the HEA to receive title IV aid.\2\
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\2\ To calculate the HEERF allocation under section
18004(a)(1)(B), the Department ``approximated the factors using the
best available data'' by multiplying the 2017/2018 full-time
enrollment number by the fall 2018 percentage of undergraduate,
graduate, and professional students not enrolled exclusively in
distance education, as self-reported by institutions and compiled in
the Department's Integrated Postsecondary Education Data System
(IPEDS). See Methodology for Calculating Allocations per Section
18004(a)(1) of the CARES Act, https://www2.ed.gov/about/offices/list/ope/heerf90percentformulaallocationexplanation.pdf.
Thus, the approach taken in calculating the ``full-time
equivalent enrollment of students'' in section 18004(a)(1)(B)
differs from the approach taken in this rule in interpreting and
applying ``grants to students'' elsewhere in section 18004. The
Department intends to interpret the term ``student'' in the same way
throughout section 18004, but did not have data available on the
number of individuals enrolled at each institution who are or could
be eligible for title IV aid, so the Department had to use a
different measure based on available data. As between the available
options, the Department believed that using a broader number for
part of the baseline in establishing each institution's share under
18004(a)(1) made sense because funds used toward the first allowed
purpose in 18004(c) (to cover any costs associated with significant
changes to the delivery of instruction due to the coronavirus) apply
to the entire institution regardless of the definition of
``student.'' The Department also deemed it more important to move
expeditiously to calculate the HEERF allocation despite the
acknowledged ``limitations of th[e] data,'' rather than stopping the
HEERF process in order to gather additional data solely for purposes
of calculating the HEERF allocation.
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Final Rule:
For purposes of the phrases ``grants to students'' and ``emergency
financial aid grants to students'' in sections 18004(a)(2), (a)(3), and
(c) of the CARES Act, ``student'' is defined as an individual who is,
or could be, eligible under section 484 of the HEA, to participate in
programs under title IV of the HEA. We add this definition to 34 CFR
668.2.
An important policy goal for the Department is to make emergency
financial aid grants available to students in the most efficient,
effective, and expedient way possible and consistent with Congressional
intent. At the same time, the Department has an obligation to taxpayers
to prevent waste, fraud, and abuse. The potential for waste, fraud, and
abuse is significant when institutions of higher education are given
the opportunity to quickly make cash awards to students, particularly
when institutions are rightfully concerned about declining enrollments
and the loss of ancillary revenue as a result of COVID-19. In addition,
there have been reports that the unusual circumstances caused by COVID-
19 have given rise to new efforts to defraud government programs in
other contexts.\3\
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\3\ See, e.g., Mike Baker, Feds Suspect Vast Fraud Network Is
Targeting U.S. Unemployment Systems, New York Times,
www.nytimes.com/2020/05/16/us/coronavirus-unemployment-fraud-secret-service-washington.html (last visited May 19, 2020).
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The Department has considered these issues in reaching its
interpretation of the category of those eligible for ``emergency
financial aid grants to students'' in section 18004(a)(2), (a)(3), and
(c). The Department has concluded that the best approach to
interpreting ``student'' in ``emergency financial aid grants to
students'' is to mean a person who is eligible under section 484 of the
HEA to receive title IV aid, as suggested by the references to title IV
elsewhere in section 18004. This approach uses a clear, existing
standard that is familiar to the Department and to institutions and
will allow both the Department and institutions to implement the HEERF
provisions in an efficient, effective, and expedient way. The
Department has placed a high priority on getting assistance to
institutions and individuals as quickly and efficiently as possible in
light of the national emergency and the immediate needs resulting
therefrom, and the use of an existing standard here achieves that same
important goal. The title IV eligibility standard has already been
specified in great detail by the Department in its practice and its
communications with institutions with regard to title IV programs over
the years. In contrast, using a generic, broad standard would require
the Department and institutions to wade through a litany of specific
questions about which groups of potential students do or do not qualify
for ``grants to students.'' \4\
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\4\ For example, there would need to be consideration and a
determination made regarding whether to include or exclude
individuals based on whether they are enrolled for credit, enrolled
in an off-campus program, simultaneously finishing a high school
degree, taking remedial courses, taking only zero-credit thesis
courses, enrolled exclusively in courses not applied towards a
recognized credential, enrolled only in English as a Second Language
programs or Continuing Education Units, auditing classes only,
participating residents or interns in a medical doctor practice
program after receiving their degree, studying abroad at a foreign
university, enrolled in a branch campus in a foreign country, or
participating in Experimental Sites.
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For the majority of students, active participation in title IV
programs will clearly demonstrate to the institution and the Department
that they are qualified as a student to receive emergency financial aid
grants. For example, with regard to the title IV eligibility
requirement related to citizenship or appropriate immigration status in
the United States, the majority of students' statuses can be verified
by the fact of their participation in title IV.\5\ And this
verification also ensures that the disbursement of grants to those
individuals occurs in compliance with the independent statutory
restriction found in 8 U.S.C. 1611.
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\5\ For the rest of students, qualification can be confirmed by
the method described in the May 1, 2015 Dear Colleague Letter,
entitled ``Citizenship and Immigration Status Documentation'' (DCL
ID: GEN-15-08), the Federal Student Aid Handbook (https://ifap.ed.gov/sites/default/files/attachments/2019-08/1920FSAHbkVol1Ch2.pdf), or by employing the electronic document
submission flexibilities provided in the Department's April 3, 2020,
``UPDATED Guidance for Interruptions of Study Related to COVID-19''
(https://ifap.ed.gov/sites/default/files/attachments/2020-04/040320UPDATEDGuidanceInterruptStudyRelCOVID19Attach.pdf).
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The Department also acknowledges the efficiency of leveraging
existing processes and procedures to minimize burden on institutions
implementing this IFR. For example, institutions could encourage
students who currently do not receive title IV aid to submit the Free
Application for Federal Student Aid (FAFSA) in order to determine title
IV eligibility.
In addition, this approach to interpreting ``student'' within the
phrase ``emergency financial aid grants to students'' also allows the
Department to prevent potential waste, fraud, and abuse. For example,
without the title IV eligibility standard, the existence of HEERF
funding could incentivize individuals who are not qualified and cannot
qualify under the title IV
[[Page 36498]]
standard to enroll as students, and it could incentivize institutions
to take advantage of this dynamic to further their bottom lines. If a
broad definition of ``student'' were employed for purposes of emergency
financial aid grants to students, unscrupulous institutions could
create cheap classes and programming that provides little or no
educational value and then use the HEERF grant funding to incentivize
individuals not qualified under title IV to enroll as paying students
in those classes and programs, thereby qualifying for a grant.
Alternatively, institutions could use the HEERF grant funding to
incentivize the re-enrollment of students cannot maintain Satisfactory
Academic Progress (SAP) due to reasons beyond the qualifying emergency,
solely for the purpose of increasing revenues via the tuition such
students would pay. Without restriction, institutions could also use
HEERF funds for students who are enrolled at the institution but do not
intend to receive a degree or certificate, thereby diverting funds from
students who are pursuing a degree or certificate in an eligible
program.
Instead, interpreting ``student'' to track title IV eligibility for
purposes of emergency financial aid grants to students will ensure that
institutions are only providing funds to students who are enrolled in
an eligible program at an institution and are maintaining SAP in their
program, among other requirements. Each of these requirements exists
because it focuses the use of Federal resources on valuable educational
activities and excludes areas that are more open to waste, fraud, and
abuse. This approach will thereby allow the Department to reduce the
likelihood and amount of waste, fraud, and abuse in the administration
of the HEERF allocations under the CARES Act.
Waiver of Notice and Comment Rulemaking, Negotiated Rulemaking, and
Delayed Effective Date Under the Administrative Procedure Act
The Department believes its interim final rulemaking authority must
be narrowly construed and exercised only when there is a sound basis
for doing so. However, Congress enacted the CARES Act to help Americans
cope with the urgent economic and health crises created by the COVID-19
outbreak and created the HEERF to provide emergency financial aid
grants to students. In light of the urgent economic challenges facing
many students as a result of the crisis, the Department has determined
that there is good cause for interim final rulemaking and that such
action is in the public interest. In the absence of this interim final
rule, the terms defined herein will remain undefined and indefinite,
and the potential for waste, fraud, and abuse described above will not
have been unaddressed in any legally binding manner.\6\
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\6\ Nor will the Department enforce the title IV eligibility
interpretation announced in this rule against distribution of HEERF
funds that occurred prior to the publication of this rule.
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Under the Administrative Procedure Act (APA) (5 U.S.C. 553), the
Department generally offers interested parties the opportunity to
comment on proposed rules. However, the APA provides that an agency is
not required to conduct notice and comment rulemaking when the agency,
for good cause, finds that notice and public comment thereon are
impracticable, unnecessary, or contrary to the public interest (5
U.S.C. 553(b)(B)). In light of the current national emergency and the
importance of institutions properly distributing the HEERF allocations
via emergency financial aid grants to students to help with their
expenses related to the disruption of campus operations due to COVID-19
as quickly as possible, the normal rulemaking process would be
impracticable and contrary to the public interest, so good cause exists
for waiving the notice and comment requirements of the APA. Although
the Department has issued guidance to this effect already, that
guidance is not legally binding, the Department understands that
certain institutions have refrained from distributing some or all of
their HEERF funds until a final rule is issued clarifying this point in
a legally binding manner.
The Department is not required to conduct negotiated rulemaking for
this rule. The requirement in HEA section 492 that requires the
Department to obtain public involvement in the development of proposed
regulations for title IV of the HEA does not apply to this final rule,
because it implements the CARES Act, not title IV. Moreover, even if it
did apply, section 492(b)(2) of the HEA provides that negotiated
rulemaking may be waived for good cause when doing so would be
``impracticable, unnecessary, or contrary to the public interest.''
Section 492(b)(2) of the HEA also requires the Secretary to publish the
basis for waiving negotiations in the Federal Register at the same time
as the regulations in question are first published. Even if section 492
applied to this rule, good cause would exist to waive the negotiated
rulemaking requirement, since, as explained above, notice and comment
rulemaking is not practicable or in the public interest in this case.
The master calendar requirement in section 482 of the HEA likewise
does not apply to this rule, because the rule does not relate to the
delivery of student aid funds under title IV.
Additionally, the APA generally requires that regulations be
published at least 30 days before their effective date, except as
otherwise provided by the agency for good cause found and published
with the rule (5 U.S.C. 553(d)(3)). As described above, good cause
exists for this rule to be effective upon publication in light of the
current national emergency and the importance of institutions properly
distributing the HEERF allocations via emergency financial aid grants
to students to help with their expenses related to the disruption of
campus operations due to COVID-19. The CRA requires a major rule may
take effect no sooner than 60 calendar days after an agency submits a
CRA report to Congress or the rule is published in the Federal
Register, whichever is later. 5 U.S.C. 801(a)(3)(A). However, the CRA
creates limited exceptions to this requirement. See id. Sec. 801(c);
Sec. 808. An agency may invoke the ``good cause'' exception under
section 808(2) in the case of rules for which the agency has found
``good cause'' under the APA, section 553(b)(B), to issue the rule
without providing the public with an advance opportunity to comment. As
stated above the Department has found good cause to issue this rule
without notice and comment rulemaking and thus we are not including the
60-day delayed effective date in this rule.
Executive Orders 12866, 13563, and 13771
Regulatory Impact Analysis
Under Executive Order 12866, it must be determined whether this
regulatory action is ``significant'' and, therefore, subject to the
requirements of the Executive order and subject to review by the Office
of Management and Budget (OMB). Section 3(f) of Executive Order 12866
defines a ``significant regulatory action'' as an action likely to
result in a rule that may--
(1) Have an annual effect on the economy of $100 million or more,
or adversely affect a sector of the economy, productivity, competition,
jobs, the environment, public health or safety, or State, local, or
Tribal governments or communities in a material way (also referred to
as an ``economically significant'' rule);
[[Page 36499]]
(2) Create serious inconsistency or otherwise interfere with an
action taken or planned by another agency;
(3) Materially alter the budgetary impacts of entitlement grants,
user fees, or loan programs or the rights and obligations of recipients
thereof; or
(4) Raise novel legal or policy issues arising out of legal
mandates, the President's priorities, or the principles stated in the
Executive order.
OMB has determined that this regulatory action is a significant
regulatory action subject to review by OMB under section 3(f) of
Executive Order 12866.
Under Executive Order 13771, for each new regulation that the
Department proposes for notice and comment or otherwise promulgates
that is a significant regulatory action under Executive Order 12866 and
that imposes total costs greater than zero, it must identify two
deregulatory actions. For FY 2020, any new incremental costs associated
with a new regulation must be fully offset by the elimination of
existing costs through deregulatory actions. This rule's designation
under Executive Order 13771 will be informed by public comment.
We have also reviewed these regulations under Executive Order
13563, which supplements and explicitly reaffirms the principles,
structures, and definitions governing regulatory review established in
Executive Order 12866. To the extent permitted by law, Executive Order
13563 requires that an agency--
(1) Propose or adopt regulations only upon a reasoned determination
that their benefits justify their costs (recognizing that some benefits
and costs are difficult to quantify);
(2) Tailor its regulations to impose the least burden on society,
consistent with obtaining regulatory objectives and taking into
account--among other things and to the extent practicable--the costs of
cumulative regulations;
(3) In choosing among alternative regulatory approaches, select
those approaches that maximize net benefits (including potential
economic, environmental, public health and safety, and other
advantages; distributive impacts; and equity);
(4) To the extent feasible, specify performance objectives rather
than the behavior or manner of compliance a regulated entity must
adopt; and
(5) Identify and assess available alternatives to direct
regulation, including economic incentives--such as user fees or
marketable permits--to encourage the desired behavior, or provide
information that enables the public to make choices.
Executive Order 13563 also requires an agency ``to use the best
available techniques to quantify anticipated present and future
benefits and costs as accurately as possible.'' The Office of
Information and Regulatory Affairs of OMB has emphasized that these
techniques may include ``identifying changing future compliance costs
that might result from technological innovation or anticipated
behavioral changes.''
We are issuing this interim final rule only on a reasoned
determination that its benefits would justify its costs. In choosing
among alternative regulatory approaches, we selected those approaches
that would maximize net benefits. Based on the analysis that follows,
the Department believes that these regulations are consistent with the
principles in Executive Order 13563.
We have also determined that this regulatory action would not
unduly interfere with State, local, and Tribal governments in the
exercise of their governmental functions.
Elsewhere in this section under Paperwork Reduction Act of 1995, we
identify and explain burdens specifically associated with the
information collection requirements.
Need for Regulatory Action
The Department is issuing this interim final rule to clarify which
students are eligible for emergency financial aid grants under section
18004 of the CARES Act. This final rule is meant to balance flexibility
and clarify administration for institutions so the funds can be
provided to eligible students as efficiently as possible with
eligibility requirements consistent with congressional intent and
designed to prevent waste, fraud, and abuse. The emergency financial
aid grants are meant to assist students with expenses related to the
disruption of on-campus activities, so this final rule is meant to
clarify any questions about eligibility so the funds can be disbursed
in a timely manner.
As detailed in the preamble of this IFR, in light of the current
national emergency and the importance of institutions distributing the
HEERF allocations via emergency financial aid grants to students to
help with their expenses related to the disruption of campus operations
due to COVID-19, the normal rulemaking process would be impracticable
and contrary to the public interest. With the definition of ``student''
in ``emergency financial aid grants to students'' uncertain,
institutions may be reluctant to award the full allocation for grants
to students in time to assist with the COVID-19 related expenses the
funds are intended to alleviate.
Costs, Benefits, and Transfers
The emergency financial aid grants under section 18004 of the CARES
Act are intended to assist eligible students with expenses related to
the disruption of campus activities. In accordance with OMB Circular A-
4, we are evaluating the costs and benefits of the IFR compared to a
pre-statutory baseline. This IFR defines which students are eligible
for the grants but does not change the amount available or the
allocation formula for providing the funds to institutions. The amount
of transfers available to eligible students in 2020 is a minimum of
$6.25 billion and up to $12.5 billion, depending on the amount
institutions retain for institutional expenses. We have not discounted
or annualized this amount because it is meant to be disbursed to
students as efficiently as possible in the current year.
As described in this preamble, the eligibility requirements
clarified in this final rule allow students to know if they are
eligible to receive such funds from their institution. Limiting
eligibility to title IV-eligible students who were enrolled and making
P SAP in on-campus programs during the time of coronavirus-related
disruptions to campus operations should allow the grants to be targeted
for the purpose they were established. By aligning requirements with
title-IV eligibility,\7\ those individuals who do not meet one or more
of the title IV eligibility requirements will be unable to receive
HEERF grants.
---------------------------------------------------------------------------
\7\ An exhaustive list of student eligibility requirements can
be found in Section 484 of the Higher Education Act of 1965, as
amended [20 U.S.C. 1091]. They are as follows (1) enroll or be
accepted for enrollment in a program leading to a recognized
credential at an eligible IHE and not enrolled in elementary or
secondary school (2) if presently enrolled, be maintaining
satisfactory academic progress (3) not owe a refund on a Federal
student grant or be in default on any Federal student loan (4)
submit a Statement of Educational Purpose (5) are a U.S. citizen,
National or eligible noncitizen (6) not have been convicted of, or
plead nolo contendere or guilty to, a crime involving fraud in
obtaining federal student aid (7) have a high school diploma or its
equivalent (8) have a valid social security number (9) register with
the Selective Service (if required) (10) not been convicted of any
offense under any Federal or State law involving the possession or
sale of a controlled substance for conduct that occurred during a
period of enrollment for which the student was receiving Federal
student aid. For more information visit: https://uscode.house.gov/view.xhtml?req=(title:20%20section:1091%20edition:prelim) and here
https://ifap.ed.gov/federal-student-aid-handbook/08-05-2019-2019-2020-federal-student-aid-handbook-student-eligibility.
---------------------------------------------------------------------------
As institutions will determine how they will distribute funds to
their
[[Page 36500]]
students, the Department does not know the exact distribution of who
will receive the grants. Table 1 shows the estimated pool of potential
recipients as derived from IPEDS data for institutions that received an
allocation. It is not specific to Spring 2020 enrollment but does
provide an indication of the number of students who could receive
funds. The primary eligibility limitations reflected in the table are
the exclusion of non-resident aliens and the use of the percent of
students whose programs were exclusively through distance education to
estimate eligible on-campus enrollment.
Table 1--Estimated Potential Grant Recipients by Control of Institution
----------------------------------------------------------------------------------------------------------------
Public Private Proprietary Total
----------------------------------------------------------------------------------------------------------------
Total Enrollment \8\................ 18,527,813 4,778,403 1,053,455 24,359,671
Undergraduate................... 16,872,158 3,208,336 916,722 20,997,216
Graduate........................ 1,655,655 1,570,067 136,733 3,362,455
Non-Resident Alien.................. 692,123 408,696 25,903 1,126,722
Percent All-Distance \9\............ 11.40 19.20 59.90
Estimated Potentially Eligible On- 15,802,421 3,530,723 412,048 19,745,193
Campus Enrollment..................
----------------------------------------------------------------------------------------------------------------
It will be easier for students who have successfully completed a
FAFSA and received a valid student aid report (SAR) or institutional
student information record (ISIR) for the 2019-20 or 2020-21 award
years to receive an emergency financial aid grant because they have
already demonstrated their eligibility under title IV. While some
students may choose not to fill out a FAFSA because they have other
sources of funding for their education, others may lack the necessary
information or familiarity with the financial aid process to have
information in place already. A number of studies have examined the
issue of barriers to FAFSA completion including complexity and lack of
counseling. These barriers are particularly challenging for low-income,
minority, and first-generation students.\10\ Another limitation that
will restrict title IV eligible students' access to the emergency
financial aid grants is their program's participation in title IV aid.
Some programs at title-IV eligible institutions, primarily shorter
training courses such as first responder training certificate programs,
do not participate. Students enrolled in such programs will not be
eligible for the emergency financial aid grants. Students who choose
not to fill out a FAFSA but otherwise meet the title IV eligibility
criteria may verify their eligibility by completing an application
designed by the institution in which the student attests under the
penalty of perjury to meeting the requirements of section 484 of the
HEA.
---------------------------------------------------------------------------
\8\ Analysis of IPEDS 2017-18 12-month enrollment file, effy2018
available at https://nces.ed.gov/ipeds/datacenter/DataFiles.aspx?goToReportId=7.
\9\ National Center for Education Statistics, Digest of
Education Statistics 2019, Table 311.15. Number and percentage of
students enrolled in degree-granting postsecondary institutions, by
distance education participation, location of student, level of
enrollment, and control and level of institution: Fall 2017 and Fall
2018. Fall 2017 share of students taking exclusively distance
education courses. Available at https://nces.ed.gov/programs/digest/d19/tables/dt19_311.15.asp.
\10\ Owen, Laura and Westlund, Erik (2016) ``Increasing College
Opportunity: School Counselors and FAFSA Completion,'' Journal of
College Access: Vol. 2: Iss. 1, Article 3. Available at: http://scholarworks.wmich.edu/jca/vol2/iss1/3. Literature review discusses
barriers and interventions.
---------------------------------------------------------------------------
In developing this IFR, the Department considered waiving some
title IV eligibility requirements related to drug offenses, fraud
related to title IV funds, or default. Ultimately, it was determined
that eliminating some eligibility criteria and not others would not be
fair across groups of students and would not allow institutions to
maximize the use of their existing eligibility confirmation processes.
It is unclear how institutions will interpret the language of the
CARES Act as they continue distributing emergency financial aid grants
to students in the absence of the clarification contained in this rule.
Some institutions may choose to continue to follow the guidance the
Department has already issued on this subject, while others may adopt
their own broader definition of ``student.'' At a minimum, the
Department has already brought to the attention of institutions that
the restrictions in 8 U.S.C. 1611 apply with regard to the distribution
of grants to non-qualifying aliens as defined therein, so those
individuals would not qualify for such grants under any interpretation
of ``students.'' On the other hand, within the boundaries established
by the terms of the CARES Act and other applicable statutes,
institutions have discretion in distributing emergency financial aid
grants to students, so even if an institution decided to use a broad
definition of ``students'' in the absence of this rule, the institution
might not exercise its discretion to award grants to everyone who meets
that broader definition. It is therefore difficult to estimate with any
degree of certainty how institutions would use their HEERF allocations
differently for distribution of emergency financial aid grants to
students in the absence of this rule.
Students will benefit from assistance in paying additional expenses
associated with elements included in their cost of attendance, such as
room and board, that changed with the disruption of campus activities.
As confirmed by the Internal Revenue Service, the relief provided under
section 18004 of the CARES Act will not be considered gross income, so
students have no Federal tax consequences to deter them from accepting
this assistance. Students will have to work with their institutions to
access the funds according to whatever process the institution
establishes to award the relief. As described in the Paperwork
Reduction Act section of this preamble, students are expected to take
263,138 hours for a total of $4.71 million at a wage rate of $17.89
\11\ to apply for emergency relief in 2020.
---------------------------------------------------------------------------
\11\ Students' hourly rate estimated using Bureau of Labor
Statistics (BLS) for Sales and Related Workers, All Other, available
at: https://data.bls.gov/cgi-bin/print.pl/oes/current/oes_nat.htm.
Last accessed May 20, 2020.
---------------------------------------------------------------------------
Institutions are also affected by this final rule. They have some
flexibility in determining how they will distribute the funds they were
allocated for this emergency relief. They will incur some costs in
setting criteria or establishing an application process for their
students. We assume the distribution of the funds can largely rely on
existing processes and information involved in the disbursement of
other title IV aid, but there will be some burden in confirming
students' eligibility for the emergency relief, including for students
who do not have an existing valid SAR or ISIR for the 2019-20 or 2020-
21 award years. This could involve developing an application that
includes student attestation under the penalty of
[[Page 36501]]
perjury to meeting the requirements of section 484 of the HEA. For
students who knowingly misrepresent the truth in their attestation, the
school may take disciplinary action against the student or require
repayment of the emergency grant. As described in the Paperwork
Reduction Act section of this preamble, burden on institutions is
estimated to increase by 25,680 hours and $1,177,941 at a wage rate of
$45.87 for postsecondary education administrators \12\ in 2020.
---------------------------------------------------------------------------
\12\ Based on BLS 2019 median hourly wage rate for postsecondary
education administrators in the BLS Occupational Outlook Handbook.
Available at www.bls.gov/ooh/management/postsecondary-education-administrators.htm. Last accessed May 20, 2020.
---------------------------------------------------------------------------
To the extent that students use their emergency financial aid
grants for expenses related to elements of their cost of attendance
provided by institutions, those institutions will receive some revenue
students may otherwise have been unable to pay at this time. Table 2
summarizes the amounts to be allocated to institutions by sector. The
full breakout of amounts allocated to individual institutions,
including the maximum that can be allocated to institutional costs, is
available in the Allocations for section 18004(a)(1) of the CARES Act
document \13\ on the Department's CARES Act website.\14\ These
allocations were made according to the formula described in the
Methodology for Calculating Allocations document \15\ on the
Department's CARES Act website. The allocation formula emphasizes
institutions' share of Pell Grant recipients with 75 percent of the
allocation based on each IHE's share of full-time equivalent (FTE)
enrollment of Pell Grant recipients who were not enrolled exclusively
in distance education prior to the coronavirus emergency, relative to
the share of such individuals in all institutions. The remaining 25
percent is based on the institution's share of FTE enrollment of
students who were not Pell Grant recipients and who were not enrolled
exclusively in distance education prior to the coronavirus emergency.
This formula helps direct relief to institutions that serve lower
income students as part of their on-campus operations.
---------------------------------------------------------------------------
\13\ Available at www2.ed.gov/about/offices/list/ope/allocationstableinstitutionalportion.pdf.
\14\ www2.ed.gov/about/offices/list/ope/caresact.html.
\15\ Available at www2.ed.gov/about/offices/list/ope/heerf90percentformulaallocationexplanation.pdf.
Table 2--Summary of HEERF Allocations
------------------------------------------------------------------------
Sum of minimum
allocation to be
Sum of total awarded for
Row labels allocation emergency financial
aid grants to
students
------------------------------------------------------------------------
Private Non-Profit <2 Yrs... 11,121,217 5,560,619
Private Non-Profit 2-3 Yrs.. 31,469,853 15,734,951
Private Non-Profit 4 Yrs or 2,441,436,384 1,220,718,556
More.......................
Proprietary <2 Yrs.......... 314,169,982 157,085,261
Proprietary 2-3 Yrs......... 415,718,070 207,859,135
Proprietary 4 Yrs or More... 388,802,168 194,401,134
Public <2 Yrs............... 40,318,527 20,159,318
Public 2-3 Yrs.............. 2,655,311,849 1,327,656,148
Public 4 Yrs or More........ 6,208,906,453 3,104,453,411
-------------------------------------------
Grand Total............. 12,507,254,503 6,253,628,533
------------------------------------------------------------------------
Net Budget Impact
We estimate that the definition of student eligibility for the
emergency financial aid grants to students will not have an impact on
the Federal budget. The CARES Act provided a maximum of $12.5 billion,
with a minimum of $6.25 billion required to be spent on emergency
financial aid grants to students and not spent on institutional
expenses. The final rule does not impact the Federal budget because it
clarifies which students are eligible to receive emergency relief
provided by the CARES Act but do not change the amount available for
such grants. As described in the Costs, Benefits, and Transfers section
related to institutions, allocations have been determined and $11.1
billion of the funding has been disbursed to institutions already, with
$50 million held in reserve to account for data limitations in
allocating the initial amounts to eligible institutions. We anticipate
that $12.5 billion will ultimately be disbursed in 2020, and therefore
estimate $12.5 billion in transfers in 2020 relative to a pre-statutory
baseline.
Accounting Statement
As required by OMB Circular A-4 (available at www.whitehouse.gov/sites/default/files/omb/assets/omb/circulars/a004/a-4.pdf), in the
following table we have prepared an accounting statement showing the
classification of the impacts associated with the provisions of these
final regulations in 2020, using 3% and 7% discount rates. This table
provides our best estimate of the changes in monetized transfers in
2020 as a result of these final regulations. We note that transfers
below flow from the Federal Government to eligible students and are
processed through institutions.
[[Page 36502]]
Table 3--Accounting Statement: Classification of Estimated Impacts in
2020
[In millions]
------------------------------------------------------------------------
------------------------------------------------------------------------
Category Benefits
------------------------------------------------------------------------
Assistance may support students
continuing in their programs........... Not Quantified
------------------------------------------------------------------------
Costs
------------------------------------------------------------------------
Paperwork burden on institutions to 7% 3%
administer funds and on students to $5.9 $5.9
apply..................................
------------------------------------------------------------------------
Category................................ Transfers
------------------------------------------------------------------------
Relief for eligible students and 7% 3%
institutions to help with additional $12,500 $12,500
expenses due to disruption of campus
activities.............................
------------------------------------------------------------------------
Regulatory Flexibility Act Certification
The Regulatory Flexibility Act does not apply to this rulemaking
because there is good cause to waive notice and comment under the
Administrative Procedure Act (5 U.S.C. 553).
The Secretary certifies that this final rule will not have a
significant economic impact on a substantial number of small entities.
The U.S. Small Business Administration Size Standards define ``small
entities'' as for-profit or nonprofit institutions with total annual
revenue below $7,000,000 or, if they are institutions controlled by
small governmental jurisdictions (that are comprised of cities,
counties, towns, townships, villages, school districts, or special
districts), with a population of less than 50,000.
However, as noted in several of the Department's recent
regulations, we believe that an enrollment-based standard for small
entity status is more applicable to institutions of higher education.
The Department recently proposed a size classification based on
enrollment using IPEDS data that established the percentage of
institutions in various sectors considered to be small entities, as
shown in Table 4. We described this size classification in the NPRM
published in the Federal Register on July 31, 2018 for the proposed
borrower defense rule (83 FR 37242, 37302). The Department discussed
the proposed standard with the Chief Counsel for Advocacy of the Small
Business Administration, and while no change has been finalized, the
Department continues to believe this approach better reflects a common
basis for determining size categories that is linked to the provision
of educational services.
Table 4--Small Entities Under Enrollment Based Definition
----------------------------------------------------------------------------------------------------------------
Level Type Small Total Percent
----------------------------------------------------------------------------------------------------------------
2-year................................ Public.................. 342 1,240 28
2-year................................ Private................. 219 259 85
2-year................................ Proprietary............. 2,147 2,463 87
4-year................................ Public.................. 64 759 8
4-year................................ Private................. 799 1,672 48
4-year................................ Proprietary............. 425 558 76
-------------------------------------------------------------------------
Total............................. ........................ 3,996 6,951 57
----------------------------------------------------------------------------------------------------------------
This rule will benefit those institutions of higher education that
are small entities by allowing them to use a familiar existing
eligibility framework to determine who should receive emergency
financial aid grants under HEERF. As described in the Regulatory Impact
Analysis, institutions may benefit from applying no more than 50
percent of their allocation of HEERF funds to institutional costs, so
some small entities will benefit from those revenues. They will also
have to establish a process for determining which of their students
should receive and disburse the funds accordingly. We expect that the
2,586 estimated small entities allocated funds for this purpose under
the CARES Act will spend a total of 5,172 hours totaling $237,240 at a
wage rate of $45.87 \11\ for postsecondary administrators to administer
the distribution of the relief.
Table 5 shows the allocations of funds to small entities by sector,
with any institution for which there was no small business indicator
available considered a small entity. As for all institutions, the
allocations of funds to specific small institutions is available on the
Department's CARES website.\12\
Table 5--Summary of Allocations to Small Entities by Sector
------------------------------------------------------------------------
Sum of minimum
allocation to be
awarded for
Sector Sum of total emergency
allocation financial aid
grants to
students
------------------------------------------------------------------------
Private Non-Profit <2 Yrs......... 8,274,977 4,137,498
Private Non-Profit 2-3 Yrs........ 20,417,294 10,208,669
[[Page 36503]]
Private Non-Profit 4 Yrs or More.. 266,608,121 133,304,213
Proprietary <2 Yrs................ 239,330,457 119,665,488
Proprietary 2-3 Yrs............... 177,306,399 88,653,273
Proprietary 4 Yrs or More......... 84,269,294 42,134,681
Public <2 Yrs..................... 29,196,455 14,598,279
Public 2-3 Yrs.................... 28,278,395 14,139,221
Public 4 Yrs or More.............. 56,909,101 28,454,561
-------------------------------------
Grand Total................... 910,590,493 455,295,883
------------------------------------------------------------------------
As institutions control the distribution of the funds to eligible
students and have flexibility to establish a process suitable to their
circumstances, no alternatives were considered specifically for small
entities.
Paperwork Reduction Act of 1995
As part of its continuing effort to reduce paperwork and respondent
burden, the Department provides the general public and Federal agencies
with an opportunity to comment on proposed and continuing collections
of information, in accordance with the Paperwork Reduction Act of 1995
(PRA) (44 U.S.C. 3506(c)(2)(A)). This helps ensure that: The public
understands the Department's collection instructions, respondents can
provide the requested data in the desired format, reporting burden
(time and financial resources) is minimized, collection instruments are
clearly understood, and the Department can properly assess the impact
of collection requirements on respondents.
In determining eligibility for these funds, IHEs are being directed
to use the Department's interpretation of ``student,'' meaning a person
who is eligible under section 484 of the HEA to receive title IV aid,
as suggested by the references to title IV in the context of section
18004.
We believe that most institutions will expand their current
financial aid appeals process and utilize that framework to receive
requests for COVID-19 assistance from eligible students. We estimate
that each institution that received an allocation would require five
hours to set up any new form for students to complete and establish
review and recordkeeping procedures to be able to comply with the
separate reporting requirements in the Certification and Agreement
between the institutions and the Secretary. The estimated burden for
the 1,651 private institutions is 8,255 hours (1,651 x 5 hours). The
estimated burden for the 1,641 proprietary institutions is 8,205 hours
(1,641 x 5 hours). The estimated burden for the 1,844 public
institutions is 9,220 (1,844 x 5 hours). The total new burden to all
institutions receiving an allocation of funds is 25,680 hours (5,136
institutions x 5 hours).
Using the unique number of title IV aid recipients 10,319,154 (both
Federal grant and Federal student loan) for the Award Year 2019-2020 we
estimate that 15 percent, or 1,547,873, of those recipients will
request additional aid from their institution based on changed
circumstances due to the coronavirus. We estimate approximately 20
minutes per students to complete the request for additional aid for a
total new burden of 510,798 hours (.33 hours x 1,547,873).
This is a new information collection with a total burden assessment
of 536,478 hours for 1,553,009 respondents with a single response. The
Department has requested an emergency clearance to allow for the
immediate collection of this information. The public will be provided
the ability to comment on the proposed burden assessment through the
standard information collection process with notice requesting comment
being published in the Federal Register.
1840-NEW--Eligibility of Students at Institutions of Higher Education for Funds Under the CARES Act
----------------------------------------------------------------------------------------------------------------
Estimate costs
Number of Number of Hours per student $17.89
Affected entity respondents responses response Total burden institutions
$45.87
----------------------------------------------------------------------------------------------------------------
Individual Student.............. 1,547,873 1,547,873 .33 510,798 $9,138,176
Private Institution............. 1,651 1,651 5 8,255 378,657
Proprietary Institution......... 1,641 1,641 5 8,205 376,363
Public Institution.............. 1,844 1,844 5 9,220 422,921
-------------------------------------------------------------------------------
Total....................... 1,553,009 1,553,009 .............. 536,478 10,316,117
----------------------------------------------------------------------------------------------------------------
Intergovernmental Review: This program is subject to Executive
Order 12372 and the regulations in 34 CFR part 79. One of the
objectives of the Executive order is to foster an intergovernmental
partnership and a strengthened federalism. The Executive order relies
on processes developed by State and local governments for coordination
and review of proposed Federal financial assistance.
This document provides early notification of our specific plans and
actions for this program.
[[Page 36504]]
Federalism
Executive Order 13132 requires us to ensure meaningful and timely
input by State and local elected officials in the development of
regulatory policies that have federalism implications. ``Federalism
implications'' means substantial direct effects on the States, on the
relationship between the National Government and the States, or on the
distribution of power and responsibilities among the various levels of
government. This interim final regulation may have federalism
implications. We encourage State and local elected officials to review
and provide comments on this interim final regulation.
Accessible Format: Individuals with disabilities can obtain this
document in an accessible format (e.g., braille, large print,
audiotape, or compact disc) on request to the person listed under FOR
FURTHER INFORMATION CONTACT.
Electronic Access to This Document: The official version of this
document is the document published in the Federal Register. You may
access the official edition of the Federal Register and the Code of
Federal Regulations at www.govinfo.gov. At this site you can view this
document, as well as all other documents of this Department published
in the Federal Register, in text or portable document format PDF. To
use PDF, you must have Adobe Acrobat Reader, which is available for
free on the site.
You may also access documents of the Department published in the
Federal Register by using the article search feature at
www.federalregister.gov. Specifically, through the advanced search
feature at this site, you can limit your search to documents published
by the Department.
List of Subjects in 34 CFR Part 668
Administrative practice and procedure, Aliens, Colleges and
universities, Consumer protection, Grant programs--education, Loan
programs--education, Reporting and recordkeeping requirements,
Selective Service System, Student aid, Vocational education.
Betsy DeVos,
Secretary of Education.
For the reasons discussed in the preamble, the Secretary amends
title 34 of the Code of Federal Regulations as follows:
PART 668--STUDENT ASSISTANCE GENERAL PROVISIONS
0
1. The authority citation for part 668 continues to read as follows:
Authority: 20 U.S.C. 1001-1003, 1070a, 1070g, 1085, 1087b,
1087d, 1087e, 1088, 1091, 1092, 1094, 1099c, and 1099c-1, 1221e-3,
and 3474; Pub. L. 111-256, 124 Stat. 2643; unless otherwise noted.
0
2. Section 668.2 is amended by adding the definition ``Student,'' in
alphabetical order to read as follows:
Sec. 668.2 General definitions.
* * * * *
Student, for purposes of the phrases ``grants to students'' and
``emergency financial aid grants to students'' in sections 18004(a)(2),
(a)(3), and (c) of the Coronavirus Aid, Relief, and Economic Security
(CARES) Act, is defined as an individual who is, or could be, eligible
under section 484 of the HEA, to participate in programs under title IV
of the HEA.
(Authority: 20 U.S.C. 1221e-3 3474)
* * * * *
[FR Doc. 2020-12965 Filed 6-15-20; 4:15 pm]
BILLING CODE 4000-01-P