Navigating 10,000 Rules Regs 101

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Navigating 10,000 Rules - Regs 101
2002 NCHELP Fall Training ConferenceMinneapolis,
MN
Betsy Mayotte ASA Mike Hawkes ECMC Marlene
Seeklander EAC Jay Downs Siska CHELA
Financial Resources, Inc. Pat Riemenschneider
Iowa Student Loan Liquidity Corporation
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Famous Navigators

• Christopher Columbus
• Ferdinand Magellan
• Hernando de Soto
• Francisco Coranado
• Leif Erikson
• Members of the NCHELP Program Regulations
  Committee

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What You Will Learn

• The hierarchy of the different types of rules
• Reauthorization and the path it takes
• The regulatory process
• How to read a Federal Register and regulations
• Sub-regulatory guidance
• The best source of resources for finding rules

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Hierarchy of Rules

• Some rules take precedence over others
• Laws
• Regulations
• Dear Colleague/Dear Partner Letters
• Private letters
• Verbal guidance

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HEA Reauthorization

• Primary law is Higher Education Act
• Reauthorization is required each 5-6 years
• Most recent reauthorization October 7, 1998
• Next reauthorization? 2003? 2004?

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Other Laws

• HEA can change as a result of other laws.
• Labor-HHS-Education appropriations bills
• Work Incentives Improvement Act of 1999
• Laws not directly related to FFELP can cause big
  changes.
• E-sign law
• Gramm-Leach-Bliley
• California privacy rules

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From Idea to Law
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Bill is bornfrom an idea...
Wouldnt it be nice if students only had to fill
out one Note?
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Bill is recommended to Congress.
IDEA
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Bill goes to Congress.
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Bill goes to Committee.
BILL
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Educational CommitteesCongress - Committee on
Education and Workforce

• Rep. John Boehner, Chairman, Ohio
• Republican Members - 27
• Democrat Members - 22
• http//edworkforce.house.gov/members/mem-fc.htm

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Educational CommitteesSenate - Committee on
Health, Education, Labor and Pensions

• Senator Edward M. Kennedy, Chairman, MA
• Democratic Members - 11
• Republican Members - 10
• http//labor.senate.gov/Members/members.htm

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Committee will discuss and debate Bill.
BILL
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Or, Bill might die in Committee.
If they favor Bill, hell live!
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Bill could come back in another form.
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HOUSE
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SENATE
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HOUSE
SENATE
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Bill goes to the
White House.
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George W. Bush
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HOUSE
SENATE
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George W. Bush
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The Regulatory Process

• New regulations are issued because
• A law is passed
• The industry identifies issues that need to be
  addressed
• Negotiated rulemaking begins
• Representatives from many organizations hammer
  out regulatory language
• Consensus means unanimity

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The Process

• Negotiated Rulemaking drafting sessions
• Notice of Proposed Rulemaking (NPRM)
• Public Comment Period
• Final Rule Published
• Rules become effective
• Master Calendar
• Early Implementation
• Trigger Events

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Identifying an NPRM
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NPRM Elements

• Preamble
• List of regs in NPRM
• Brief summary statement (why)
• Public comment deadline
• Where to send comments (email or snail mail)
• Further information contact
• Supplementary information
• Detail
• Rationale
• Proposed Language

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NPRM Sample
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The Comment Process

• Generally 30 60 days
• Opportunity to analyze changes
• Trade organizations, others review NPRM
• Determine coordinate issues
• Submit comments to ED
• Individually or as group
• Negotiators cannot disagree on consensus issues

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After Comments

• ED counts comments!
• ED reviews and analyzes comments
• ED prepares comment responses and finalizes final
  regulations
• Final regulations are published in Federal
  Register

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Identifying a Final Rule
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Final Rules Usual Contents

• Preamble
• list of all parts changed
• brief summary of changes
• effective date
• Typically the following July 1st
• Could have several dates, some early
• individual to contact for further info
• supplementary information

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Supplementary Information

• Background historical discussion of process
  NPRM through final

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Supplementary Information

• Substantive Revisions optional section
  identifying final regulations which are
  significantly different from proposed

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Supplementary Information

• Analysis of comments and changes
• Summarizes comment
• Discussion EDs agreement or disagreement
• Change, if any, from the proposed rule

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Final Rules Usual Contents

• Regulatory language with changes integrated into
  existing regulation

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Final Rules Usual Contents

• Regulatory language showing only changes

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A Word About Preambles

• Indicator of intent
• Expanded guidance
• Vanishes when regulation is reprinted

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Examining the Final Rules

• Industry groups examine the final regulations
• NCHELP Program Regulations Committee has a major
  role
• Integrated Regulations
• Side-by-side
• Topical Index

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Reading a Regulation

• C.F.R. 34
• Part 682
• Section .201
• Subsection (a)
• Paragraph (1)
• Subparagraph (i)
• Division (A)
• Clause (1)

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Reading a Regulation

• 34 CFR 682.207(b)(1)(v)(B)(2) Requires
  co-payable PLUS disbursements for checks
• Read all Lead-Ins!

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Reading a Regulation

• 682.207 Due Diligence in Disbursing a Loan
• (b)(1) In disbursing a loan, a lender
• (v) shall disburse
• (B) in the case of a Federal PLUS Loan
• (2) By a check from the lender that is made
  co-payable to the institution and the parent
  borrower directly to the institution.

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Pitfalls

• Be Sure to Read
• all lead-ins
• entire section and
• cross references
• Pay Attention
• May vs. Shall
• And vs. Or
• Notwithstanding

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Subregulatory Guidance

• Dear Colleague/Partner Letters (DCLs)
• provide operational guidance
• summarize law changes
• provide interim guidance
• DCLs formally distributed to community
• Private Letter issued to individual or entity
• Verbal/Powerpoint

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NCHELPe-Library

• www.nchelp.org

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History of the Revamping

• Lots of useful information on the NCHELP Site
• You needed the navigational skills of Magellan to
  find a specific file

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History of the Revamping

• It started with an idea and a simple question
• July 2001 workgroup formed

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History of the Revamping

• Goal define reference material
• Preliminary definition discussed at August 2001
  Regs Committee Meeting
• Definition has been refined since

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e-Library Contents

• Includes non-FFELP reference materials since many
  participants offer non-FFELP products
• Duplicate content from other web sites
  One-Stop Shopping

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NCHELP e-Library Home Page
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• Mike Hawkes ECMC
• Led the e-Library redesign workgroup.

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Web Site Redesign Project Volunteers

• Susan Fields ISAC
• Kay Majofsky Access Group
• Sherry George NCHELP
• Chris Martin NCHELP
• Nikki Williams ECMC
• Hope Jackson ECMC
• Betsy Mayotte ASA
• Wanda Hall edAmerica
• Peter Pundt AES/PHEAA
• Jacci Grawburg College Foundation, Inc.
• Walter Witthoff Iowa Student Loan Liquidity
  Corporation

• Deb Crouse-Rhudy KHESLC
• Mike Hawkes ECMC
• Marlene Seeklander Education Assistance
  Corporation
• Susan Degen OSAC
• Amy Kohntopp edAmerica
• Vicki Shipley ISAC
• Jim Elvekrog Great Lakes Higher Education
  Corporation
• Karen Lanning NCHELP
• Richard Vanover ECMC Intern (Gallaudet
  University)

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Lets take a closer look at the e-Library
sections
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e-Library Home Page
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Laws Home Page
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Laws ? HEA
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Laws ? HEA ? Detail, Title IV, Part A
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Laws ? HEA ? Using FIND to search
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Laws ? HEA ? Detail, Section 428J
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Laws Home Page
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Laws ? Privacy E-Signature Laws
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Laws ? Credit Interest Related Laws
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Laws ? Credit Interest Related ? Detail,
Soldiers Sailors Relief Act
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Laws ? Links to State Legislatures
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Laws ? Links to State Legislatures ? Hawaii
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e-Library Home Page
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Regulations Home Page
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Regulations ? Current Integrated Regulations
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Regulations ? Current Integrated ? Detail of
redline 682.101(b)
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Regulations
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Regulations ? Topical Index
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Federal Register Home Page
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Federal Register ? Final Regulations
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Federal Register ? NPRM
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Federal Register ? Industry Comments
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Federal Register ? Industry Comment ? Detail
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Federal Register ? Side-by-Sides
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Federal Register ? Side-by-Sides ? 4/02, IRS
Final Regulations
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e-Library Home Page
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Dear Partner Letters Home Page
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Dear Partner Letters ? Guarantor Letters
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Dear Partner Letters ? Guarantor Letters ? 2002
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Dear Partner Letters ? Guarantor Letters ? 2002 ?
G-02-337
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e-Library Home Page
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Common Manual Home Page
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Common Manual ?Integrated Common Manual
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Common Manual ? Integrated Common Manual ? Table
of Contents
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Common Manual ?Integrated Common Manual ?Table of
Contents
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Common Manual ? Integrated Common Manual ? Table
of Contents ? Section 2.1.A
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Forms Home Page
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Forms ? Promissory Notes
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Forms ? Promissory Notes ? Stafford Loans
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Forms ? Promissory Notes ? PLUS Loans
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Forms ? Promissory Notes ? Consolidation Loans
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Forms ? Deferment Forms
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Forms ? Forgiveness Discharge
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Forms ? Other Forms
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Forms ? Forms Archive
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Forms ? Archives ? Promissory Note Archives
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Forms ? Archives ? PLUS Promissory Note Archives
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Forms ? Archives ? Stafford Promissory Note
Archives
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Forms ? Archive ? Stafford Promissory Note
Archive ? Addendum
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Forms ? Archive ? Stafford Promissory Note
Archive ? Addendum
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Forms ? Archive ? Stafford Promissory Note
Archive ? Plain Language Disclosure
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Forms ? Archive ? Forgiveness Discharge Forms
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Forms ? Archive ? Other Forms
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Forms ? Draft/Under Development
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Forms ? Draft/Under Development ? Forms Status
Matrix
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Manuals Guides Home Page
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Manuals Guides ? Common Manual
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Manuals Guides ? SFA Handbooks
112
Manuals Guides ? CommonLine Information
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Manuals Guides ? MPN Implementation Guide
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Manuals Guides ? CDR Guide
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Manuals Guides ? GA Servicer Audit Guide
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Manuals Guides ? The Blue Book
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Manuals Guides ? Miscellaneous Guides
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Legal Proceedings Home Page
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Legal Proceedings ? Case Decisions
120
Legal Proceedings ? Case Decisions ? Bankruptcy
Decisions
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Legal Proceedings ? Arguments Briefs
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Legal Proceedings ? Comments Analysis
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Training Materials Home Page
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Job Aids Reference Materials Home Page
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Job Aids ? Interest Rate Information
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Job Aids ? Helpful Websites
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Job Aids ? Topical Index of Regulations
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Job Aids ? Special Allowance Chart
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Reports/Testimonies Home Page

• Includes reports and testimony from government
  and industry groups and from NCHELPs own experts.

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Reports/Testimonies ? GAO Testimonies
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Presentations Home Page

• By Conference
• Includes presentations made at NCHELP Events
  (archive of 2000-2002)
• By Topic
• Index to locate the one youre looking for by
  topic

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Presentations ? Index by Conference
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Presentations ? Index by Topic
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Higher Education Research Home Page
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Morning Briefing

• NCHELPs Daily update on the student loan
  community and issues affecting it
• Password Protected
• Includes archives back to November 1999

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Morning Briefing Home Page
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Morning Briefing
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Hope you enjoyed the journey through the
e-Library!
Thanks!