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

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

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66838 Federal Register / Vol. 75, No. 209 / Friday, October 29, 2010 / Rules and RegulationsWReier-Aviles on DSKGBLS3C1PROD with RULES2examined by the IPEDS TechnicalReview Panel (TRP), which is a peerreview panel that includes individualsrepresenting institutions, educationassociations, data users, Stategovernments, the Federal government,and other groups. The TRP meets todiscuss and review IPEDS-related plansand looks at the feasibility and timingof the collection of proposed new items,added institutional burden, and possibleimplementation strategies. After eachmeeting, a meeting report andsuggestions summary is posted to theIPEDS Web site. The postsecondaryeducation community then has 30 daysto submit comments on the meetingreport and summary. After thosecomments are considered, theDepartment requests the Office ofManagement and Budget (OMB) toinclude the changes in the next IPEDSdata collection. This request for formsclearance is required by the PaperworkReduction Act of 1995, as amended. Adescription of the changes and theassociated institutional reportingburden is included in the request whichis then published by OMB as a notice inthe Federal Register, initiating a 60-daypublic comment period. After that, asecond notice is published in theFederal Register, initiating a 30-daypublic comment period. Issues raised bycommenters are resolved, and thenOMB determines whether to grant formsclearance. Only OMB cleared items areadded to the IPEDS data collection.Although we agree with thecommenters that the data maintained orprocesses used by workforce datasystems may vary State by State, andthat the data systems are not availableto all institutions or in all States, wecontinue to believe that these datasystems afford participating institutionsan efficient and accurate way ofobtaining employment outcomeinformation. However, because of Stateto-Statevariances and in response tocomments about how employmentoutcome data translate to a placementrate, NCES will develop the methodsneeded to use State employment data tocalculate placement rates under itsdeliberative process for IPEDS.Until the IPEDS-developed placementrate methodology is implemented, aninstitution that is required by itsaccrediting agency or State to calculatea placement rate, or that otherwisecalculates a placement rate, mustdisclose that rate under the currentprovisions in § 668.41(d)(5). However,under new § 668.6(b), the institutionmust disclose on its Web site andpromotional materials the placementrate for each program that is subject tothe gainful employment provisions ifthat information is available or can bedetermined from institutionalplacement rate calculations.Consequently, to satisfy the newdisclosure requirements, an institutionthat calculates a placement rate for oneor more programs would disclose thatrate under § 668.6(b) by identifying theaccrediting agency or State agencyunder whose requirements the rate wascalculated. Otherwise, if an accreditingagency or State requires an institution tocalculate a placement rate only at theinstitutional level, the institution mustuse the agency or State methodology tocalculate the placement rate for each ofits programs from information it alreadycollects and must disclose the programspecificplacement rates in accordancewith § 668.6(b).Changes: Section 668.6(b) has beenrevised to specify that an institutionmust disclose for each program theplacement rate calculated under amethodology developed by itsaccrediting agency, State, or theNational Center for Education Statistics(NCES). The institution must disclosethe accrediting agency or State-requiredplacement rate beginning on July 1,2011 and must identify the accreditingagency or State agency under whoserequirements the rate was calculated.The NCES-developed placement ratewould have to be disclosed when therates become available.On-Time Completion RateComment: Many commenters askedthe Department to clarify the meaning of‘‘on-time’’ completion rate. Othercommenters assumed that ‘‘on-time’’completion referred to the graduationrate currently calculated under theStudent Right to Know requirements in§ 668.45, or encouraged the Departmentto either (1) adopt the currentrequirements in § 668.45 for gainfulemployment purposes, or (2) use acompletion rate methodology from anaccrediting agency or State, to minimizeconfusion among students and burdenon institutions. One of the commenterssuggested that if the Departmentintended ‘‘on-time’’ to mean 100 percentof normal time for completion, then theproposed rate should be calculated inthe same manner as the completion ratein § 668.45 for normal time andincorporate the exclusions for studentstransferring out of programs and otherexceptions identified in § 668.45(c) and(d). Another commenter opined thatabsent significant enforcement to ensurethat all institutions consistently use thesame definition of ‘‘on-time’’ completionrate, students will be unfairly led tobelieve that institutions who reportconservatively have less favorableVerDate Mar2010 14:10 Oct 28, 2010 Jkt 223001 PO 00000 Frm 00008 Fmt 4701 Sfmt 4700 E:\FR\FM\29OCR2.SGM 29OCR2outcomes than institutions who reportaggressively. One commenter cautionedthat it may be misleading to focusheavily on graduation and placementrates, particularly for institutions whosestudents are employed while seeking adegree.A number of commenters supportedthe ‘‘on-time’’ completion requirement,and in general all of the proposeddisclosures, stating that providingoutcome data would allow prospectivestudents to make more informeddecisions. The commenters believedthat better outcome data will help toensure that the taxpayer investment iswell spent, and that students areprotected from programs that overchargeand under-deliver.A commenter stated that under Statelicensing requirements for cosmetologyschools a student must be present,typically for 1,500 hours, to qualify forgraduation and to complete theprogram. Taking attendance andensuring that a student is present forthese hours is typically required. Thecommenter reasoned that for a studentto complete the program ‘‘on-time’’ thestudent could not miss a single day oreven be late for classes as opposed to acredit hour program where a studentdoes not have to attend classes 100percent of the time but will still beconsidered to satisfy the on-timerequirement. To mitigate the differencebetween clock and credit hour programsand account for legitimatecircumstances where a student wouldmiss classes, the commenter suggestedthat the standard for ‘‘on-time’’incorporate the concept of a maximumtimeframe under the satisfactoryacademic progress provisions that allowa student to complete a program at aspecified rate.Discussion: In proposing the on-timecompletion rate requirement, theDepartment intended to include allstudents who started a program todetermine the portion of those studentswho completed the program no laterthan its published length. This approachdiffered significantly in two ways fromthe completion rate under the StudentRight to Know (SRK) provisions in§ 668.45. First, in calculating thecompletion rate the SRK methodologyincludes in the cohort only full-time,first-time undergraduate students, notall students. Second, the SRK rate isbased on 150 percent of normal time,not the actual length of the program.However, in view of the commentssuggesting that we use the SRKmethodology, or a modified version, weexamined whether the cohort ofstudents under SRK could be expandedto include all students and from that,

Federal Register / Vol. 75, No. 209 / Friday, October 29, 2010 / Rules and Regulations66839WReier-Aviles on DSKGBLS3C1PROD with RULES2whether a completion rate could becalculated based on normal time, asdefined in § 668.41(a). We concludedthat doing this would be difficult andtoo complex for institutions and theDepartment.We believe prospective studentsshould know the extent to which formerstudents completed a program on time,not only to ground their expectationsbut to plan for the time they will likelybe attending the program—an importantconsideration for many students whocannot afford to continue theireducation without earnings fromemployment. Therefore, to minimizeburden on institutions while providingmeaningful information to prospectivestudents, an institution must calculatean on-time completion rate for eachprogram subject to the gainfulemployment provisions by:(1) Determining the number ofstudents who completed the programduring the most recently completedaward year.(2) Determining the number ofstudents in step (1) who completed theprogram within normal time, regardlessof whether the students transferred intothe program or changed programs at theinstitution. For example, the normaltime to complete an associate degree istwo years. The two-year timeframewould apply to all students who enrollin the program. In other words, if astudent transfers into the program,regardless of the number of credits theinstitution accepts from the student’sattendance at the prior institution, thetransfer credits have no bearing on thetwo-year timeframe. This student wouldstill have two years to complete fromthe date he or she began attending thetwo-year program. To be counted ascompleting on time, a student whoenrolls in the two-year program fromanother program at the institutionwould have to complete the two-yearprogram in normal time beginning fromthe date the student started attendingthe prior program.(3) Dividing the number of studentswho completed within normal time instep (2) by the total number ofcompleters in step (1) and multiplyingby 100.With regard to the commenter whobelieved that a student could not missa single day of classes to complete aprogram on time, we note that under§ 668.4(e) a student can be excused fromattending classes. Under this section, astudent may be excused for an amountof time that does not exceed the lesserof (1) any thresholds established by theinstitution’s accrediting agency or Stateagency, or (2) 10 percent of the clockhours in a payment period. Absent anyState or accrediting agencyrequirements, for a typical paymentperiod of 450 clock hours a studentcould miss 45 hours. In the commenter’sexample of a 1,500 clock hour program,the student could miss 150 hours andstill complete on time for thisrequirement. Also, under § 668.41(a),normal time for a certificate program isthe time published in the institution’scatalog and that time may include makeupdays. So, an institution couldschedule make-up days, as part ofnormal time, to enable students whomissed classes to complete the numberof hours required for State licensingpurposes.Changes: Section 668.6(b) has beenrevised to specify how an institutioncalculates an on-time completion ratefor its programs.Median Loan DebtComment: Many commenters objectedstrongly to the requirement in proposed§ 668.6(a)(4) that an institution reportannually to the Department, for eachstudent attending a program that leadsto gainful employment, the amount eachstudent received from private educationloans and institutional financing plans.With regard to private education loanstaken out by students, the commentersargued that because the loans are selfcertified,in many cases an institution isnot aware of the loans and should onlyhave to report the amount of the privateloans it knows about or the amount ofthose loans that were paid directly tothe institution. Commentersrepresenting students and consumeradvocacy groups contended that mostinstitutions have preferred lender lists,help students arrange private loans,recommend a lender, receive studentpayments from a lender, or otherwisehave information about the lender.Consequently, to clarify that aninstitution cannot avoid reporting onprivate loans by feigned ignorance, thecommenters suggested that aninstitution report any private loan itknows about or should reasonably knowabout. To clarify the meaning of ‘‘privateeducation loan’’ one commentersuggested that the Department referencethe definition in § 601.2.With regard to institutional financingplans, many commenters, argued that aninstitution should only be required toreport the amount of any remaininginstitutional loans or debt obligationsowed by a student after he or shecompletes the program, not the amountof the loan or credit extended to thestudent at the start of, or during, theprogram.Many commenters asked theDepartment to clarify whether medianVerDate Mar2010 14:10 Oct 28, 2010 Jkt 223001 PO 00000 Frm 00009 Fmt 4701 Sfmt 4700 E:\FR\FM\29OCR2.SGM 29OCR2loan debt would include only loan debtincurred by students who completed aparticular program or loan debt incurredfrom previously attended programs orinstitutions. Some of the commentersargued that it would be difficult todetermine the relevant loan debt ofstudents who enroll inpostbaccalaureate certificate programsand end up concurrently pursuing anassociated master’s degree. Thecommenters argued that extracting theportion of debt that applies to thecertificate would be difficult, butreporting based on the total debtaccumulated during the graduate-levelenrollment period would overstate theamount borrowed if the intent was toreport on the certificate program. Theyalso believed that an institution wouldhave to track loan debt pertaining tocredits accepted for a program that werenot necessarily earned by students whocontinue in a graduate program,including transfer credits accepted fromother institutions. In addition, thecommenters believed that for anyundergraduate work that ‘‘transfers up,’’the portion of the loan debt from thatperiod would have to be identified. Inview of these complexities andconsidering that two-year transferprograms are excluded from thereporting requirements, the commentersrequested a similar exclusion forgraduate certificate programs where thecredits apply directly to a graduatedegree. Along the same lines, othercommenters requested thatpostbaccalaureate certificate programsor courses such as a certification as aschool principal, districtsuperintendent, or director ofinstruction be exempted from theseregulations.A commenter requested an exemptionfor four-year degree-granting institutionsstating that such institutions only havea handful of certificate programs thatwould be of no concern to theDepartment.A few commenters believed thatinstitutions should either (1) be allowedto disclose separately the amount ofloan debt students accumulate forinstitutional charges and the amountincurred for living expenses, or (2) notbe required to disclose loan debtincurred for living expenses becausethat debt is incurred at the student’sdiscretion and not be required todisclose loan debt incurred by a studentat prior, unrelated institutions.Other commenters urged theDepartment to use the mean instead ofthe median loan debt arguing that usingmedian debt would unjustly penalizestudents attending institutions withlarger numbers of borrowers by

66838 Federal Register / Vol. 75, No. 209 / Friday, October 29, 2010 / Rules and RegulationsWReier-Aviles on DSKGBLS3C1PROD with RULES2examined by the IPEDS TechnicalReview Panel (TRP), which is a peerreview panel that includes individualsrepresenting institutions, educationassociations, data users, Stategovernments, the Federal government,and other groups. The TRP meets todiscuss and review IPEDS-related plansand looks at the feasibility and timing<strong>of</strong> the collection <strong>of</strong> proposed new items,added institutional burden, and possibleimplementation strategies. After eachmeeting, a meeting report andsuggestions summary is posted to theIPEDS Web site. The postsecondaryeducation community then has 30 daysto submit comments on the meetingreport and summary. After thosecomments are considered, the<strong>Department</strong> requests the <strong>Office</strong> <strong>of</strong>Management and Budget (OMB) toinclude the changes in the next IPEDSdata collection. This request for formsclearance is required by the PaperworkReduction Act <strong>of</strong> 1995, as amended. Adescription <strong>of</strong> the changes and theassociated institutional reportingburden is included in the request whichis then published by OMB as a notice inthe Federal Register, initiating a 60-daypublic comment period. After that, asecond notice is published in theFederal Register, initiating a 30-daypublic comment period. Issues raised bycommenters are resolved, and thenOMB determines whether to grant formsclearance. Only OMB cleared items areadded to the IPEDS data collection.Although we agree with thecommenters that the data maintained orprocesses used by workforce datasystems may vary State by State, andthat the data systems are not availableto all institutions or in all States, wecontinue to believe that these datasystems afford participating institutionsan efficient and accurate way <strong>of</strong>obtaining employment outcomeinformation. However, because <strong>of</strong> Stateto-Statevariances and in response tocomments about how employmentoutcome data translate to a placementrate, NCES will develop the methodsneeded to use State employment data tocalculate placement rates under itsdeliberative process for IPEDS.Until the IPEDS-developed placementrate methodology is implemented, aninstitution that is required by itsaccrediting agency or State to calculatea placement rate, or that otherwisecalculates a placement rate, mustdisclose that rate under the currentprovisions in § 668.41(d)(5). However,under new § 668.6(b), the institutionmust disclose on its Web site andpromotional materials the placementrate for each program that is subject tothe gainful employment provisions ifthat information is available or can bedetermined from institutionalplacement rate calculations.Consequently, to satisfy the newdisclosure requirements, an institutionthat calculates a placement rate for oneor more programs would disclose thatrate under § 668.6(b) by identifying theaccrediting agency or State agencyunder whose requirements the rate wascalculated. Otherwise, if an accreditingagency or State requires an institution tocalculate a placement rate only at theinstitutional level, the institution mustuse the agency or State methodology tocalculate the placement rate for each <strong>of</strong>its programs from information it alreadycollects and must disclose the programspecificplacement rates in accordancewith § 668.6(b).Changes: Section 668.6(b) has beenrevised to specify that an institutionmust disclose for each program theplacement rate calculated under amethodology developed by itsaccrediting agency, State, or theNational Center for <strong>Education</strong> Statistics(NCES). The institution must disclosethe accrediting agency or State-requiredplacement rate beginning on July 1,2011 and must identify the accreditingagency or State agency under whoserequirements the rate was calculated.The NCES-developed placement ratewould have to be disclosed when therates become available.On-Time Completion RateComment: Many commenters askedthe <strong>Department</strong> to clarify the meaning <strong>of</strong>‘‘on-time’’ completion rate. Othercommenters assumed that ‘‘on-time’’completion referred to the graduationrate currently calculated under theStudent Right to Know requirements in§ 668.45, or encouraged the <strong>Department</strong>to either (1) adopt the currentrequirements in § 668.45 for gainfulemployment purposes, or (2) use acompletion rate methodology from anaccrediting agency or State, to minimizeconfusion among students and burdenon institutions. One <strong>of</strong> the commenterssuggested that if the <strong>Department</strong>intended ‘‘on-time’’ to mean 100 percent<strong>of</strong> normal time for completion, then theproposed rate should be calculated inthe same manner as the completion ratein § 668.45 for normal time andincorporate the exclusions for studentstransferring out <strong>of</strong> programs and otherexceptions identified in § 668.45(c) and(d). Another commenter opined thatabsent significant enforcement to ensurethat all institutions consistently use thesame definition <strong>of</strong> ‘‘on-time’’ completionrate, students will be unfairly led tobelieve that institutions who reportconservatively have less favorableVerDate Mar2010 14:10 Oct 28, 2010 Jkt 223001 PO 00000 Frm 00008 Fmt 4701 Sfmt 4700 E:\FR\FM\29OCR2.SGM 29OCR2outcomes than institutions who reportaggressively. One commenter cautionedthat it may be misleading to focusheavily on graduation and placementrates, particularly for institutions whosestudents are employed while seeking adegree.A number <strong>of</strong> commenters supportedthe ‘‘on-time’’ completion requirement,and in general all <strong>of</strong> the proposeddisclosures, stating that providingoutcome data would allow prospectivestudents to make more informeddecisions. The commenters believedthat better outcome data will help toensure that the taxpayer investment iswell spent, and that students areprotected from programs that overchargeand under-deliver.A commenter stated that under Statelicensing requirements for cosmetologyschools a student must be present,typically for 1,500 hours, to qualify forgraduation and to complete theprogram. Taking attendance andensuring that a student is present forthese hours is typically required. Thecommenter reasoned that for a studentto complete the program ‘‘on-time’’ thestudent could not miss a single day oreven be late for classes as opposed to acredit hour program where a studentdoes not have to attend classes 100percent <strong>of</strong> the time but will still beconsidered to satisfy the on-timerequirement. To mitigate the differencebetween clock and credit hour programsand account for legitimatecircumstances where a student wouldmiss classes, the commenter suggestedthat the standard for ‘‘on-time’’incorporate the concept <strong>of</strong> a maximumtimeframe under the satisfactoryacademic progress provisions that allowa student to complete a program at aspecified rate.Discussion: In proposing the on-timecompletion rate requirement, the<strong>Department</strong> intended to include allstudents who started a program todetermine the portion <strong>of</strong> those studentswho completed the program no laterthan its published length. This approachdiffered significantly in two ways fromthe completion rate under the StudentRight to Know (SRK) provisions in§ 668.45. First, in calculating thecompletion rate the SRK methodologyincludes in the cohort only full-time,first-time undergraduate students, notall students. Second, the SRK rate isbased on 150 percent <strong>of</strong> normal time,not the actual length <strong>of</strong> the program.However, in view <strong>of</strong> the commentssuggesting that we use the SRKmethodology, or a modified version, weexamined whether the cohort <strong>of</strong>students under SRK could be expandedto include all students and from that,

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