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 2 Statutory Authority Part of 1998 HEA reauthorization HEA §492 outlines parameters ◊ Secretary shall involve public in developing proposed regulations ◊ All regulations promulgated by the Secretary are subject to negotiated rulemaking • 3 Secretary has authority to conclude such action is impracticable, unnecessary or contrary to public interest Statutory Authority HEA §492 outlines parameters, cont’d ◊ Secretary holds regional meetings to solicit input from the community on issues to be addressed during negotiations ◊ Negotiators nominated by groups representing students, legal aid organizations, post-secondary schools, guarantors, lenders, secondary markets, servicers, collection agencies • 4 Secretary selects negotiators from list of nominees Negotiated Rulemaking Process Department of Education convenes meetings ◊ Teams assembled by topic, for example: ◊ ◊ ◊ 5 • Teacher preparation (2012) • Student Loans Team (2012) • Gainful Employment (2013) Facilitated by independent 3rd party Meeting protocols established by federal and non-federal negotiators Meetings open to public Negotiated Rulemaking Process Team establishes protocols for ◊ ◊ ◊ ◊ ◊ ◊ 6 Adding new members Establishing subcommittees Caucusing Contact with the press Withdrawing from the process Adding Issues to be considered Negotiated Rulemaking Process Schedule typically includes three meetings ◊ ◊ ◊ Meeting 1 • Protocols • Identification of Issues to be negotiated • Issue Review Meeting 2 • Finalize Issues to be negotiated • Draft Regulations Meeting 3 • 7 Final Regulations More or fewer meetings may be scheduled Negotiated Rulemaking Process 8 Goal – achieve intended public policy while limiting unintended negative consequences and costs Approach – convene balanced group of stakeholders with expertise and experience to deliberate on issues, interests, and concerns relative to regulation Outcome – consensus regulatory language for Notice of Proposed Rulemaking (NPRM) Negotiated Rulemaking Process Principles of consensus ◊ ◊ ◊ Responsibilities of negotiators ◊ ◊ ◊ ◊ ◊ 9 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 ◊ ◊ 10 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) ◊ 11 Alternate will participate in absence of primary 2012 Student Loan Team Students ◊ David Glezerman; Maria Livolsi Robert Perrin Todd Leatherman; Michele Casey Two-Year Public Institutions ◊ 12 Cristi Millard; Chris Christensen Robert Sandlin; Vicki Shipley Accrediting Agencies ◊ Betsy Mayotte; Scott Giles Lenders/Loan Servicers ◊ Tom Sakos; Anthony Fragomeni Guaranty Agencies ◊ Yvonne Gutierrez-Sandoval; Jeffrey A. Gall Private For-Profit Institutions ◊ Kris Wright; Elaine Papas-Varas Private Nonprofit Institutions ◊ State Attorneys General ◊ Institutional Third-Party Servicers ◊ Margaret Rodriguez; Elizabeth Hicks Four-Year Public Institutions ◊ Business Officers and Bursars ◊ Jennifer Mishory; Maureen Thompson Financial Aid Administrators ◊ Deanne Loonin; Radhika Singh Miller Consumer Advocacy Organizations ◊ Getachew Kassa; Abou Amara, Jr. Legal Assistance to Students ◊ Albert Gray; Sharon Turner Department of Education ◊ Pam Moran; Gail McLarnon 2013 Gainful Employment Students ◊ ◊ 13 Jack Warner; Sandra Kinney State Attorneys General/State Officials ◊ Della Justice; Libby DeBlasio Business and Industry ◊ Ted Daywalt; Thomas Kriger Brain Jones; Raymond Testa Accrediting Agencies ◊ Jenny Rickard; Thomas Dalton Private For-Profit Institutions ◊ Barmak Nassirian; Barbara Hoblitzell Private Nonprofit Institutions ◊ Richard Heath; Glen Gilbert Four-Year Public Institutions ◊ Helga Greenfield; Ronnie Higgs Two-Year Public Institutions ◊ Kevin Jensen; Rhonda Mohr State Higher Education Executive Officers ◊ Margaret Reiter; Tom Tarantino Financial Aid Administrators Minority Serving Institutions ◊ Eileen Connor; Whitney Barkley Consumer Advocacy Organizations ◊ Rory O’Sullivan; Kalwis Lo Legal Assistance to Students ◊ Belle Wheelan; Neil Harvison Department of Education ◊ 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) ◊ Early implementation may be granted by Secretary ◊ ◊ 14 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” Negotiated rulemaking sessions on Student Loan Issues ◊ NPRM #1 published – July 17, 2012 ◊ 30-day comment period – due August 17, 2012 Final Rule published – November 1, 2012 NPRM #2 published – July 29, 2013 ◊ 15 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 Package #1: ◊ ◊ Package #2: ◊ ◊ ◊ ◊ ◊ ◊ ◊ ◊ 16 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 ◊ Total and permanent disability Social Security Administration documentation can establish eligibility ED as single point of contact for processing ◊ Income-driven repayment plans New Pay As You Earn repayment plan Improved notifications to borrowers 17 Examples of Successful Negotiation • Neg Reg 2012 – Package #2 (NPRM) ◊ 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 • ◊ 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 • ◊ Administrative wage garnishment • ◊ Perkins cancellation provisions • 18 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] 19