Transcript Slide 1

MASFAA 2013
October 6th – 9th, 2013
Indianapolis, Indiana
Midwest Association of Student
Financial Aid Administrators
Federal Policymaking: Start Your Engines
Presented by:
Nancy Masten
Great Lakes Higher Education Guaranty Corporation
Charles “Buddy” Mayfield
University of Illinois
Federal Policymaking:
Start Your Engines
What is Negotiated Rulemaking?
 What is the process?
 Who participates?
 Examples of successful negotiation
 From bill to regulation
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Statutory Authority
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Part of 1998 HEA reauthorization
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HEA §492 outlines parameters
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Secretary shall involve public in developing proposed regulations
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All regulations promulgated by the Secretary are subject to
negotiated rulemaking
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Secretary has authority to conclude such action is impracticable,
unnecessary or contrary to public interest
Statutory Authority
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HEA §492 outlines parameters, cont’d
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Secretary holds regional meetings to solicit input from the
community on issues to be addressed during negotiations
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Negotiators nominated by groups representing students, legal
aid organizations, post-secondary schools, guarantors, lenders,
secondary markets, servicers, collection agencies
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Secretary selects negotiators from list of nominees
Negotiated Rulemaking Process
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Department of Education convenes meetings
◊ Teams assembled by topic, for example:
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Teacher preparation (2012)
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Student Loans Team (2012)
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Gainful Employment (2013)
Facilitated by independent 3rd party
Meeting protocols established by federal and non-federal
negotiators
Meetings open to public
Negotiated Rulemaking Process
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Team establishes protocols for
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Adding new members
Establishing subcommittees
Caucusing
Contact with the press
Withdrawing from the process
Adding Issues to be considered
Negotiated Rulemaking Process
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Schedule typically includes three meetings
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Meeting 1
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Protocols
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Identification of Issues to be negotiated
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Issue Review
Meeting 2
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Finalize Issues to be negotiated
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Draft Regulations
Meeting 3
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Final Regulations
More or fewer meetings may be scheduled
Negotiated Rulemaking Process
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Goal – achieve intended public policy while limiting
unintended negative consequences and costs
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Approach – convene balanced group of stakeholders
with expertise and experience to deliberate on issues,
interests, and concerns relative to regulation
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Outcome – consensus regulatory language for Notice of
Proposed Rulemaking (NPRM)
Negotiated Rulemaking Process
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Principles of consensus
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Responsibilities of negotiators
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General agreement or accord
Consent versus support
Enlightened self interest
Voice opinions and concerns
Assist with developing solutions to satisfy objectives
Consent to livable proposals
Block consensus for serious objections
Maintain ongoing contact with constituents
Negotiated Rulemaking Process
Negotiation key to productive meetings
 Department provides draft language
 Team reviews and suggests revisions
 Department revises language to reflect agreement in
concept or provides options
 Team reviews with goal of achieving consensus
 Outside activities/meetings occur throughout
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Conference calls with federal and non-federal negotiators
Two-way feedback between negotiators and constituency
Negotiators
Teams consist of primary and alternate negotiators
 Primary will participate for purposes of determining
consensus (voting)
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Alternate will participate in absence of primary
2012 Student Loan Team
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Students
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David Glezerman; Maria Livolsi
Robert Perrin
Todd Leatherman; Michele Casey
Two-Year Public Institutions
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Cristi Millard; Chris Christensen
Robert Sandlin; Vicki Shipley
Accrediting Agencies
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Betsy Mayotte; Scott Giles
Lenders/Loan Servicers
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Tom Sakos; Anthony Fragomeni
Guaranty Agencies
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Yvonne Gutierrez-Sandoval; Jeffrey A. Gall
Private For-Profit Institutions
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Kris Wright; Elaine Papas-Varas
Private Nonprofit Institutions
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State Attorneys General
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Institutional Third-Party Servicers
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Margaret Rodriguez; Elizabeth Hicks
Four-Year Public Institutions
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Business Officers and Bursars
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Jennifer Mishory; Maureen Thompson
Financial Aid Administrators
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Deanne Loonin; Radhika Singh Miller
Consumer Advocacy Organizations
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Getachew Kassa; Abou Amara, Jr.
Legal Assistance to Students
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Albert Gray; Sharon Turner
Department of Education
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Pam Moran; Gail McLarnon
2013 Gainful Employment
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Students
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Jack Warner; Sandra Kinney
State Attorneys General/State
Officials
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Della Justice; Libby DeBlasio
Business and Industry
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Ted Daywalt; Thomas Kriger
Brain Jones; Raymond Testa
Accrediting Agencies
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Jenny Rickard; Thomas Dalton
Private For-Profit Institutions
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Barmak Nassirian; Barbara Hoblitzell
Private Nonprofit Institutions
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Richard Heath; Glen Gilbert
Four-Year Public Institutions
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Helga Greenfield; Ronnie Higgs
Two-Year Public Institutions
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Kevin Jensen; Rhonda Mohr
State Higher Education Executive
Officers
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Margaret Reiter; Tom Tarantino
Financial Aid Administrators
Minority Serving Institutions
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Eileen Connor; Whitney Barkley
Consumer Advocacy Organizations
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Rory O’Sullivan; Kalwis Lo
Legal Assistance to Students
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Belle Wheelan; Neil Harvison
Department of Education
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John Kolotos
Master Calendar Provisions
Outlined in HEA §482(c)
 Regulatory changes published by November 1 take effect
July 1 of the following year (beginning of next award
year)
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Early implementation may be granted by Secretary
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If deadline not met, changes not effective until second award
year following November 1
Such changes become effective as determined by the Secretary
(typically on date of publication of Final Rule)
Option of impacted party to implement early
From “Bill” to “Regulation”
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Negotiated rulemaking sessions on Student Loan Issues
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NPRM #1 published – July 17, 2012
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30-day comment period – due August 17, 2012
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Final Rule published – November 1, 2012
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NPRM #2 published – July 29, 2013
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Meetings held between Jan – March 2012
30-day comment period – due August 28, 2013
Final Rule expected by November 1, 2013
2012 Student Loan Team Topics
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Package #1:
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Package #2:
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Total and permanent disability
Income-driven repayment plans (IBR, Pay As You Earn, ICR)
Repayment disclosures
Minimum loan period
Forbearance
Closed school discharge
Enrollment status reporting
Loan rehabilitation
Administrative wage garnishment
Perkins Loans Issues
Examples of Successful Negotiation
• Neg Reg 2012 - Package #1
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Total and permanent disability
Social Security Administration documentation can establish eligibility
 ED as single point of contact for processing
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Income-driven repayment plans
New Pay As You Earn repayment plan
 Improved notifications to borrowers
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Examples of Successful Negotiation
• Neg Reg 2012 – Package #2 (NPRM)
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Closed School Discharge
Would extend timeframe in which borrower can be withdrawn from school
prior to the school’s closure date to qualify for discharge (from 90 to 120
days)
• Would include examples of what ED considers exceptional circumstances
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Loan rehabilitation
Would standardize what guarantor and ED can consider in establishing
rehabilitation payment amount
• Would incorporate IBR-based formula if borrower objects to rehab
agreement provided
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Administrative wage garnishment
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Perkins cancellation provisions
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Would fold in AWG rules into student loan regulations
Would allow borrowers to switch from one cancellation category to another
and receive cancellation at same annual rate
Federal Policymaking:
Start Your Engines
Questions?
Contact Info:
Charles “Buddy” Mayfield
[email protected]
Nancy Masten
[email protected]
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