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

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66902 Federal Register / Vol. 75, No. 209 / Friday, October 29, 2010 / Rules and RegulationsWReier-Aviles on DSKGBLS3C1PROD with RULES2Discussion: We do not agree. Aninstitution must act in accordance with§ 668.164(g), which contains therequirements for making a latedisbursement, including circumstanceswhere a student did not have a validSAR or valid ISIR on the student’s lastdate <strong>of</strong> attendance.Changes: None.Verification and Updating <strong>of</strong> StudentAid Application Information (Subpart E<strong>of</strong> Part 668)General (§ 668.51)Comment: One commenter questionedwhether the <strong>Department</strong> woulddescribe, in the final regulations, ourplans to provide training to assistinstitutions to prepare for and complywith verification requirements reflectedin subpart E <strong>of</strong> part 668.Discussion: The <strong>Department</strong> will issueguidance through the Application andVerification Guide and other trainingmaterials, as needed. The <strong>Department</strong>will also provide training through ourregional training <strong>of</strong>ficers. Forinformation on our current and futuretraining activities and learningresources, institutions should visit theTraining for Financial Aid Pr<strong>of</strong>essionalsWeb site at http://www2.ed.gov/<strong>of</strong>fices/OSFAP/training/index.html.Changes: None.Comment: Some commentersrequested that the <strong>Department</strong> delayimplementing the new verificationrequirements until the 2012–13 awardyear to give institutions sufficient timeto train their staff and make thenecessary system changes.Discussion: The <strong>Department</strong>recognizes that institutions may needtime to make changes to theirinstitutional processing systems tocomply with the requirements insubpart E <strong>of</strong> part 668. Accordingly, asdescribed in the DATES section <strong>of</strong> thesefinal regulations, we will delay theeffective date <strong>of</strong> the changes to thissubpart until July 1, 2012, which meansthat it will be effective for the 2012–13award year.Changes: None.Comment: Some commenters notedthat because no new loans can becertified under the Federal Family<strong>Education</strong> Loan (FFEL) Programeffective July 1, 2010, all references tothe FFEL Program and loan certificationshould be removed from the regulatorylanguage in this subpart.Discussion: We concur with thecommenters. We had not removed thereferences to FFEL in the NPRM becausethat notice was already underdevelopment when the legislativechange to end new lending under theFFEL Program was enacted. Our intentwas to make the necessary technicalcorrections in the final regulations.Changes: Throughout subpart E <strong>of</strong>part 668, we have removed references tothe FFEL Program and anycorresponding regulatory citations.Specifically, we have removedreferences to ‘‘Subsidized StaffordLoan,’’ ‘‘Unsubsidized Stafford Loan,’’‘‘Federal PLUS Loan,’’ and ‘‘lender’’ aswell as certifications for SubsidizedStafford loans from §§ 668.52, 668.58,and 668.60.Definitions (§ 668.52)Comment: Some commentersexpressed support for the <strong>Department</strong>’sefforts to simplify and clarify thedefinitions used throughout theverification regulations under subpart E<strong>of</strong> part 668. One commenter noted thatchanging the defined term applicationto FAFSA, and using the term FAFSAinformation in place <strong>of</strong> the termapplication helps distinguish theFAFSA from other financial aidapplications used at many institutions.Discussion: We appreciate thecommenters’ support.Changes: None.Comment: Two commenters suggestedthat we change the names <strong>of</strong> the definedterms FAFSA information, subsidizedstudent financial assistance programs,and unsubsidized student financialassistance programs. Specifically, onecommenter suggested that we use theterm ‘‘Federal Methodology (FM) needanalysis data’’ or ‘‘ISIR data’’ rather thanFAFSA information to better reflectwhat institutions receive once the datareported on the FAFSA have beenprocessed. In addition, one commenterstated that using the terms ‘‘subsidized’’and ‘‘unsubsidized’’ to modify studentfinancial assistance programs willconfuse applicants because those termsare more commonly used when referringto loan programs. The commenter statedthat families would better understandthe type <strong>of</strong> aid we are referring to byusing the terms ‘‘need-based studentfinancial assistance programs’’ and‘‘non-need-based student financialassistance programs.’’Another commenter requested thatthe <strong>Department</strong> include in theregulations definitions for the terms‘‘applicant’’ and ‘‘timely manner.’’Discussion: While we appreciate thesuggestions, we do not believe thesuggested changes are necessary. Wealso do not agree that using the term‘‘subsidized’’ and ‘‘unsubsidized’’throughout subpart E will confuseapplicants and their families about thetype <strong>of</strong> aid we are referring to sincethese regulations are written for FAAs atVerDate Mar2010 14:10 Oct 28, 2010 Jkt 223001 PO 00000 Frm 00072 Fmt 4701 Sfmt 4700 E:\FR\FM\29OCR2.SGM 29OCR2institutions <strong>of</strong> higher education and notapplicants and their families. Aninstitution may, when communicatingwith students and families, usewhatever terminology it believes willbest be understood by its students andfamilies.However, we did make some revisionsto the list <strong>of</strong> definitions under § 668.52.Specifically, we determined that thedefinitions for Free Application forFederal Student Aid (FAFSA),Institutional Student InformationRecord (ISIR), and Student Aid Report(SAR) would be more appropriatelyincluded in § 668.2(b) <strong>of</strong> subpart Abecause these terms are used throughoutpart 668 <strong>of</strong> the Student AssistanceGeneral Provisions regulations and notjust under subpart E.We also revised the definitions forValid Student Aid Report (valid SAR)and Valid Institutional StudentInformation Record (valid ISIR) in§ 668.2(b) to specify that a valid ISIR isan ISIR on which all the informationreported on a student’s FAFSA isaccurate and complete as <strong>of</strong> the date theapplication is signed, and a valid SARis a student aid report on which all <strong>of</strong>the information reported on a student’sFAFSA is accurate and complete as <strong>of</strong>the date the application is signed.In addition, we also changed thedefined terms from Student Aid Report(SAR) to Valid Student Aid Report(valid SAR) and Institutional StudentInformation Record (ISIR) to ValidInstitutional Student InformationRecord (valid ISIR) under §§ 668.54(b),668.58, 668.59, and 668.61. Prior tothese final regulations, an institutionwas not required to obtain a valid SARor valid ISIR in order to make adisbursement under the campus-basedprograms and the title IV, HEA loanprograms. Institutions could rely ontheir own calculations to determine anapplicant’s award amount withouthaving to submit corrections throughthe <strong>Department</strong>’s Central ProcessingSystem (CPS) and receiving thecorrected SAR or ISIR. Consistent withthe revisions to § 668.59(a), whichrequire that any change to a nondollaritem and any change to a dollar item onthe FAFSA that is $25 or more must besubmitted to the CPS for reprocessing,an institution must have a valid SAR ora valid ISIR to disburse funds from thesubsidized student financial assistanceprograms. By definition, a valid SAR orvalid ISIR can only be created afterinformation has been processed throughthe <strong>Department</strong>’s Central ProcessingSystem.Finally, we also determined that weno longer need to define the terms validSAR or valid ISIR under 34 CFR 690.2

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