NASFAA President To Address Negotiated Rulemaking Topics At ED Hearing
Today NASFAA President Dallas Martin will appear at the Department of Education's Washington, DC hearing to address items for the upcoming negotiated rulemaking agenda. A range of issues related to the Academic Competitiveness Grant/National SMART Grant programs are included along with several loan issues and two broader recommendations concerning establishment of safe harbor language and modification of loan repayment options. See NASFAA's complete statement below.
Statement
of
Dallas Martin, President
of the
National Association of Student Financial Aid Administrators
On
Topics for Negotiated Rulemaking
Washington, DC
November 8, 2006
Good morning. My name is Dallas Martin and I am currently the President of the National Association of Student Financial Aid Administrators (NASFAA). I appear before you today on behalf of the more than 3,000 postsecondary educational institutions and others with related interests who are members of NASFAA to offer suggestions for issues that should receive consideration during the Department of Education's upcoming negotiated rulemaking session to implement the Academic Competitiveness Grant (ACG) and National Science and Mathematics Access to Retain Talent (SMART) Grant Programs as well as some additional provisions included in the Higher Education Reconciliation Act of 2005.
We appreciate the Department's solicitation of agenda items. We believe that this process will yield regulations that will help institutions deliver student aid funds to eligible students in a timely manner fulfilling the purpose of negotiated rulemaking: to develop procedures that work in the institutional setting and remain within the statutory boundaries. Further, we hope that the Department will use the negotiated rulemaking structure to ensure that the concerns of all interested parties may be taken into account as these new programs and provisions are implemented.
We offer the following listing of items for your consideration.
Academic Competitiveness Grant/National SMART Grant Programs
Most of the questions we have received from our members pertain to academic year progression, Advanced Placement credits, and rigorous secondary school program. We've also been asked about transfer student eligibility and determination of the GPA in a variety of situations. We believe that more questions on these issues will arise as spring term gets closer. For these reasons, we believe that all of the ACG/SMART Grant program regulations need to be open to negotiation.
Other HERA Areas of Concern
Given the feedback we have received, we believe the following topics should be added to the negotiated rulemaking agenda:
The Grad PLUS Program -- Particularly the issues of both entrance and exit loan counseling as well as when the repayment period for a Grad PLUS loan should begin.
Telecommunications vs correspondence instruction Given the many instructional variations and technologies in use, we believe this is an area that needs further examination and community input to insure program integrity.
New loan discharges Particularly the approach taken in the interim final regulation regarding the requirements for obtaining a discharge of liability on the basis of identity theft.
Post-withdrawal and late disbursement requirements Including why grant funds are subject to the new confirmation requirement.
In addition to the aforementioned topics, we would also strongly urge that the agenda include the following two issues.
Establish Safe Harbor Language for Institutions. As we all are aware, the implementation of the HERA provisions has occurred in a very compressed timeframe. And, while I want to express my sincere appreciation for the efforts my colleagues in the Department of Education have expended to implement the new grant programs and to develop the interim final regulations in less than eight months, I also would note that our members have had to proceed in implementing these programs and making decisions based upon their reading of the statute and with less than complete regulatory guidance. Given the fact that everyone has proceeded with a good faith effort to make preliminary decisions consistent with their reading of the law, regulatory language should be developed to protect parties against enforcement standards that were not applicable or available when these actions were taken.
Modify Repayment Options for Borrowers with Student Loan Debt Burden. We urge the negotiated rulemaking committees to carefully examine reforms that can be made under current law with existing regulations to modify repayment options for borrowers with unmanageable student loan debt particularly making the economic hardship deferment more accessible.
Thank you for considering these recommendations. We look forward to providing you with any assistance you need during the upcoming negotiated rulemaking sessions.
Posted November 8, 2006 on www.NASFAA.org, the Web Site of the
National Association of Student Financial Aid Administrators (NASFAA).
Copyright 2006. Redistribution to non-NASFAA institutions is prohibited
Please submit Web Site questions or comments to Web@NASFAA.org
