Office of Postsecondary Education - U.S. Department of Education

66932 Federal Register / Vol. 75, No. 209 / Friday, October 29, 2010 / Rules and RegulationsWReier-Aviles on DSKGBLS3C1PROD with RULES2Reporting Disbursements, Adjustments,and Cancellations (§§ 685.102(b),685.301(e), 686.2(b), and 686.37(b))Comment: A few commenterssupported the proposed regulations toadopt the Federal Pell Grant reportingrequirements for the TEACH Grant andDirect Loan programs and to add theFederal Pell Grant definition of the termPayment Data to the two otherprograms.Discussion: We believe thatharmonizing the reporting requirementsfor the Federal Pell Grant, TEACHGrant, and Direct Loan programs inaccordance with procedures establishedby the Secretary through publication inthe Federal Register will make it easierfor institutions to administer theprograms. In addition, this flexibility toadjust the reporting requirements for allthree programs through publication inthe Federal Register will enable theSecretary to make changes in the futurethat take advantage of new technologyand improved business processes.Changes: None.Executive Order 12866Regulatory Impact AnalysisUnder Executive Order 12866, theSecretary must determine whether theregulatory action is ‘‘significant’’ andtherefore subject to the requirements ofthe Executive Order and subject toreview by the OMB. Section 3(f) ofExecutive Order 12866 defines a‘‘significant regulatory action’’ as anaction likely to result in a rule that may(1) Have an annual effect on theeconomy of $100 million or more, oradversely affect a sector of the economy,productivity, competition, jobs, theenvironment, public health or safety, orState, local or tribal governments orcommunities in a material way (alsoreferred to as an ‘‘economicallysignificant’’ rule); (2) create seriousinconsistency or otherwise interferewith an action taken or planned byanother agency; (3) materially alter thebudgetary impacts of entitlement grants,user fees, or loan programs or the rightsand obligations of recipients thereof; or(4) raise novel legal or policy issuesarising out of legal mandates, thePresident’s priorities, or the principlesset forth in the Executive order.Pursuant to the terms of the Executiveorder, we have determined thisproposed regulatory action will have anannual effect on the economy of morethan $100 million. Therefore, this actionis ‘‘economically significant’’ and subjectto OMB review under section 3(f)(1) ofExecutive Order 12866.Notwithstanding this determination, wehave assessed the potential costs andbenefits—both quantitative andqualitative—of this regulatory action.The agency believes that the benefitsjustify the costs.A detailed analysis, including theDepartment’s Regulatory Flexibility Actcertification, is found in Appendix A tothese final regulations.Paperwork Reduction Act of 1995Sections 668.6, 668.8, 668.16, 668.22,668.34, 668.43, 668.55, 668.56, 668.57,668.59, 668.144, 668.150, 668.151,668.152, and 668.164 containinformation collection requirements.Under the Paperwork Reduction Act of1995 (44 U.S.C. 3507(d)), theDepartment has submitted a copy ofthese sections to OMB for its review.Section 668.6—Gainful EmploymentThe final regulations will impose newrequirements on certain programs thatby law must, for purposes of the title IV,HEA programs, prepare students forgainful employment in a recognizedoccupation. For public and privatenonprofit institutions, a program thatdoes not lead to a degree will be subjectto the eligibility requirement that theprogram lead to gainful employment ina recognized occupation, while aprogram leading to a degree, includinga two-academic-year program fullytransferrable to a baccalaureate degree,will not be subject to this eligibilityrequirement. For proprietaryinstitutions, all eligible degree and nondegreeprograms will be required to leadto gainful employment in a recognizedoccupation, except for a liberal artsbaccalaureate program under section102(b)(1)(A)(ii) of the HEA.An institution will be required underfinal § 668.6(a) to report for eachstudent, who during an award year,began attending or completed a programunder § 668.8(c)(3) or (d), informationthat includes, at a minimum,information needed to identify thestudent and the location of theinstitution the student attended, the CIPcode of the program, the date thestudent completed the program, theamounts the student received fromprivate educational loans and theamount from institutional financingplans that the student owes theinstitution after completing theprogram, and whether the studentmatriculated to a higher credentialedprogram at the institution or anotherinstitution. We estimate that it will takethe affected 1,950 proprietaryinstitutions, on average, 12 hours todevelop the processes necessary toimplement the requirements in§ 668.6(a) for students who, during theaward year, began attending orVerDate Mar2010 14:10 Oct 28, 2010 Jkt 223001 PO 00000 Frm 00102 Fmt 4701 Sfmt 4700 E:\FR\FM\29OCR2.SGM 29OCR2completed a program under § 668.6(c)(3)or (d). These processes include ones torecord student identifier information, torecord the CIP codes associated withthese programs, to record completiondates, to determine and record theamounts the student received fromprivate educational loans and theamount from institutional financingplans that the student owes theinstitution after completing theprogram, and to record data on studentswho matriculate to higher credentialedprograms at the same or at anotherinstitution. Therefore, burden willincrease for these affected proprietaryinstitutions by 23,400 hours.We estimate that it will take theaffected 1,736 private not-for-profitinstitutions, on average, 12 hours todevelop the processes necessary toimplement the requirements in§ 668.6(a) for students who, during theaward year, began attending orcompleted a program under § 668.6.These processes include ones to recordstudent identifier information, to recordthe CIP codes associated with theseprograms, to record completion dates, todetermine and record the amounts thestudent received from privateeducational loans and the amount frominstitutional financing plans that thestudent owes the institution aftercompleting the program, and to recorddata on students who matriculate tohigher credentialed programs at thesame or at another institution.Therefore, burden will increase for theseaffected private not-for-profitinstitutions by 20,832 hours.We estimate that it will take theaffected 1,915 public institutions, onaverage, 12 hours to develop theprocesses necessary to implement therequirements in § 668.6(a) for studentswho, during the award year, beganattending or completed a program under§ 668.6. These processes include ones torecord student identifier information, torecord the CIP codes associated withthese programs, to record completiondates, to determine and record theamounts the student received fromprivate educational loans and theamount from institutional financingplans that the student owes theinstitution after completing theprogram, and to record data on studentswho matriculate to higher credentialedprograms at the same or at anotherinstitution. Therefore, burden willincrease for these affected publicinstitutions by 22,980 hours.Collectively, we estimate that burden forinstitutions to meet these processdevelopment requirements inaccordance with procedures establishedby the Secretary will increase burden by