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Foreign Institutions-Federal Student Aid Programs rule (2011)

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The Foreign Institutions-Federal Student Aid Programs rule is a significant rule issued by the U.S. Department of Education effective July 1, 2011, that amended department regulations concerning student aid program eligibility for foreign institutions under the Higher Education Act of 1965, the Student Assistance General Provisions, the Federal Family Education Loan Program, and the William D. Ford Direct Loan Program. The rule aimed to align the program with amendments made to the Higher Education Act of 1965 by the Higher Education Opportunity Act of 2008.[1]

HIGHLIGHTS
  • Name: Foreign Institutions-Federal Student Aid Programs
  • Code of Federal Regulations: 34 CFR Parts 600, 668, 682, and 685
  • Agency: Office of Postsecondary Education, Department of Education
  • Type of significant rule: Other significant rule

    • Timeline

    The following timeline details key rulemaking activity:

    • July 1, 2011: The final rule took effect.[1]
    • November 1, 2010: The Department of Education published a final rule.[1]
    • August 19, 2010: The Department of Education closed the comment period.[2]
    • July 20, 2010: The Department of Education published a notice of proposed rulemaking and opened the comment period.[2]
    • September 9, 2009: The Department of Education announced the topics that the negotiated rulemaking committees would address.[3]
    • May 26, 2009: The Department of Education announced the establishment of two negotiated rulemaking committees to prepare proposed regulations.[4]

    Background

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    President Lyndon Johnson (D) signed the Higher Education Act (HEA) into law on November 8, 1965, in an effort to strengthen educational resources and financial assistance for college students by increasing federal grants to universities, creating low-interest student loans, and issuing scholarships. Title IV of the HEA established standards for offering financial assistance to college students, which governed Student Assistance General Provisions regulations.[5]

    In response to amendments made to the HEA by the Higher Education Opportunity Act of 2008, the Department of Education issued a proposed rule on July 20, 2010, aimed at amending the regulations regarding student aid program eligibility for foreign institutions to align the provisions with the HEA.[1]

    Summary of the rule

    The following is a summary of the rule from the rule's entry in the Federal Register:

    “ The Secretary amends the regulations for Institutional Eligibility Under the Higher Education Act of 1965, the Student Assistance General Provisions, the Federal Family Education Loan (FFEL) Program, and the William D. Ford Federal Direct Loan (Direct Loan) Program to implement provisions related to the eligibility of foreign institutions for participation in the Federal student aid programs that were added to the Higher Education Act of 1965, as amended (HEA), by the Higher Education Opportunity Act of 2008 (Pub. L. 110-315) (HEOA), as well as other provisions related to the eligibility of foreign institutions.[1][6] ”

    Summary of provisions

    The following is a summary of the provisions from the rule's entry in the Federal Register:[2]

    “ In the preamble to the NPRM, the Secretary discussed on pages 42191 through 42213 the major changes proposed in that document, including the following:
    • Amending § 668.23 to establish submission requirements for compliance audits and audited financial statements specific to foreign institutions;
    • Amending §§ 600.51, 600.52, 600.54, 682.200, and 682.611 to clarify and revise the definition of a foreign institution;
    • Amending § 600.2 to establish a definition of nonprofit status specific to foreign institutions;
    • Amending § 668.171 to establish a financial responsibility standard for foreign public institutions that is comparable to the financial responsibility standard for domestic public institutions;
    • Amending § 600.54 to permit a single legal authorization for groups of foreign institutions under the purview of a single government entity;
    • Amending § 600.54 to establish eligibility of training programs at foreign institutions;
    • Amending §§ 600.52 and 668.13 to establish institutional eligibility criteria specific to foreign graduate medical schools;
    • Amending § 600.56 to establish institutional eligibility criteria specific to foreign veterinary schools;
    • Amending § 600.57 to establish institutional eligibility criteria specific to foreign nursing schools; and
    • Amending §§ 600.52 and 668.13 to revise the maximum certification period for some foreign institutions.[6]
    		 ”

    Significant impact

    See also: Significant regulatory action

    The Office of Management and Budget (OMB) deemed this rule significant pursuant to Executive Order 12866. An agency rule can be deemed a significant rule if it has had or might have a large impact on the economy, environment, public health, or state or local governments. The term was defined by E.O. 12866, which was issued in 1993 by President Bill Clinton.[1]

    Text of the rule

    The full text of the rule is available below:[1]

    See also

    External links

    Footnotes

    1. ↑ 1.0 1.1 1.2 1.3 1.4 1.5 1.6 Federal Register, "Foreign Institutions-Federal Student Aid Programs," November 1, 2010
    2. ↑ 2.0 2.1 2.2 Federal Register, "Foreign Institutions-Federal Student Aid Programs," July 20, 2010
    3. ↑ Federal Register, "Office of Postsecondary Education; Notice of Negotiated Rulemaking for Programs Authorized Under Title IV of the Higher Education Act of 1965, as Amended," September 9, 2009
    4. ↑ Federal Register, "Negotiated Rulemaking Committees; Establishment," May 26, 2009
    5. ↑ Federal Student Aid, "Gainful Employment Information," accessed May 2, 2023
    6. ↑ 6.0 6.1 Note: This text is quoted verbatim from the original source. Any inconsistencies are attributable to the original source.
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