Student Assistance: For Profit Private Sector Institutions

ICRAS 1403 1845-0022 v9 – Affected Public – For-Profit Institutions 9/27/2013

The Office of Management and Budget (OMB) Control Number 1845-0022 is expiring. This collection contains sections of the regulations at 34 CFR Part 668 – Student Assistance General Provisions. The regulations establish the standards to participate in the student financial aid assistance programs authorized by Title IV of the Higher Education Act of 1965, (HEA), as amended. These regulations establish institutional requirements in various areas of program administration. These regulations are an effort to minimize administrative burden for program participants, provide benefits to eligible Title IV, HEA program recipients, and protect the taxpayers' interest from fraud and abuse of program funds.

Subpart A – General

34 CFR 668.3 – Academic year

This section describes the requirements for an academic year for programs of study that will be eligible for Federal student aid. It also provides definitions of terms and a method for requesting relief from the Secretary from the requirements of the academic year definition.

Respondents Responses Hours

For profit institutions

4,192 7,847 2,100

34 CFR 668.8 – Eligible program

This section defines the manner in which a program can be eligible to participate in the Federal student aid programs as determined by the type and control of the institution. It also provides the method of calculating completion and placement rates for programs as well as additional program and institutional requirements.

Respondents Responses Hours

For profit institutions

4,192 7,847 6,590

Subpart B – Standards for Participation in Title IV, HEA Programs

34 CFR 668.13 – Certification procedures

This section defines the requirements for certification for institutions to participate in Federal student aid programs, the period that an institution may be eligible to participate, eligibility for provisional certification and for the revocation of eligibility.

Respondents Responses Hours

For profit institutions

4,192 7,847 10

34 CFR 668.14 – Program participation agreement

This section specifies the requirements and agreements made between the Secretary and an institution to participate in Federal student aid programs.

Respondents Responses Hours

For profit institutions

4,192 7,847 32,648

34 CFR 668.15 – Factors of financial responsibility

This section identifies how the institution must demonstrate it meets the standards of financial responsibility to participate in the Federal student aid programs, as well as the possible consequences of failing to meet the requirements.

Respondents Responses Hours

For profit institutions

4,192 7,847 857

34 CFR 668.16 – Standards of administrative capability

This section identifies how the institution must demonstrate that it is administratively capable of participating in the Federal student aid programs, as well as the possible consequences of failing to meet the requirements.

Respondents Responses Hours

For profit institutions

4,192 7,847 18,194

34 CFR 668.19 – Financial aid history

This section describes the steps the institution must take to ensure that Federal student aid program funds are only delivered to students who previously attended an eligible institution and continue to meet eligibility criteria by reviewing records made available by the Secretary.

Respondents Responses Hours

For profit institutions

4,192 7,847 1,027

34 CFR 668.22 – Treatment of title IV finds when a student withdraws

This section describes the steps the institution must take in determining the eligibility of, and amount of Federal student aid a student who has withdrawn from all courses before the conclusion of the academic period may retain and what must be repaid by either the institution, the student, or both.

Respondents Responses Hours

For profit institutions

4,210 7,862 147,779

34 CFR 668.23 – Compliance audits and audited financial statements

This section identifies who and how an institution must provide compliance audits and financial statements to ensure that Federal student aid funds are being obtained and utilized consistent with the statute and the implementing regulations.

Respondents Responses Hours

For profit institutions

4,192 7,847 3,836

34 CFR 668.24 – Record retention and examination

This section identifies the types of records that an institution must maintain to document its eligibility to participate in Federal student aid programs, the eligibility of specific institutional programs to participate in Federal student aid programs, its administration of those aid programs, its financial responsibility, and its delivery of Federal student aid to eligible students.

Respondents Responses Hours

For profit institutions

4,192 7,847 279,602

34 CFR 668.25 – Contracts between an institution and a third-party servicer

This section establishes minimum requirements for contracts between an institution and any third-party that it contracts with to perform any aspect of the administration of the programs that would normally be performed by the institution.

Respondents Responses Hours

For profit institutions

4,192 7,847 1,750

34 CFR 668.26 – End of an institution’s participation in the Title IV, HEA programs

This section identifies the circumstances and requirements of an institution that closes, ceases to provide instruction or loses its eligibility to participate in Federal student aid programs.

Respondents Responses Hours

For profit institutions

4,192 7,847 420

Subpart D – Institutional and Financial Assistance Information for Students

34 CFR 668.42 – Financial assistance information

This section identifies the types and manner of information about Federal student aid available at the institution that must be disclosed to various parties who may participate in Federal student aid programs at the institution.

Respondents Responses Hours

For profit institutions

4,192 7,847 10,412

34 CFR 668.43 – Institutional information

This section identifies the types and manner of information about various aspects of the institution that must be disclosed to parties who are or may wish to enroll in programs at the institution.

Respondents Responses Hours

For profit institutions

4,192 7,847 26,095

34 CFR 668.46 – Institutional security policies and crime statistics

This section identifies the types and manner of information about security policies and procedures as well as statistics of the types of crimes that took place at the institution that must be disclosed to parties who are or may wish to enroll in programs at the institution.

Respondents Responses Hours

For profit institutions

4,192 7,847 93,761

Subpart G – Fine, Limitation, Suspension and Termination Proceedings

34 CFR 668.90 – Initial and final decisions

This section provides for an institution’s and a third-party servicer’s appeal, in writing to the Secretary, of a hearing official’s initial decision of a fine, limitation, suspension or termination hearing.

Respondents Responses Hours

For profit institutions

4,192 7,847 1,769

34 CFR 668.96 – Reinstatement after termination

This section stipulates the procedures that an institution or third-party servicer, whose participation in Federal student aid programs has been terminated, must follow to be reinstated as a participating institution or third-party servicer.

Respondents Responses Hours

For profit institutions

4,192 7,847 266

Subpart H – Appeal Procedures for Audit Determinations and Program Review Determination

34 CFR 668.113 – Request for review

This section stipulated the procedures that an institution or third-party servicer must follow to request a review by the Secretary of a final audit or final program review determination.

Respondents Responses Hours

For profit institutions

4,192 7,847 84

Subpart L – Financial Responsibility

34 CFR 668.171 – General

This section describes the general standards institutions must meet to demonstrate it is financially responsible to participate in the Federal student aid programs.

Respondents Responses Hours

For profit institutions

4,192 7,847 193

34 CFR 668.172 – Financial ratios

This section describes the method used to calculate the institution’s composite score.

Respondents Responses Hours

For profit institutions

4,192 7,847 193

34 CFR 668.173 – Refund reserve standards

This section describes the method used to determine if an institution has sufficient cash reserves to meet the requirements for the timely return of Federal student aid program funds.

Respondents Responses Hours

For profit institutions

4,192 7,847 193

34 CFR 668.174 – Past performance

This section describes how an institution’s past performance, or that of a person affiliated with the institution, will affect its ability to meet the general financial responsibility requirements to participate in the Federal student aid programs

Respondents Responses Hours

For profit institutions

4,192 7,847 193

34 CFR 668.175 – Alternative standards and requirements

This section describes how an institution that is not financially responsible under the general standards may begin or continue to participate in the Federal student aid programs under the alternate standards of letters of credit or zone alternatives.

Respondents Responses Hours

For profit institutions

4,192 7,847 193

Subpart M – Two Year Cohort Default Rates

34 CFR 668.181 – Purpose of this subpart

This section describes the uses of the calculated cohort default rate for an institution.

Respondents Responses Hours

For profit institutions

4,192 7,847 510

34 CFR 668.182 – Definitions of terms used in this subpart

This section describes the terms used in relation to the calculation of the cohort default rate for an institution.

Respondents Responses Hours

For profit institutions

4,192 7,847 510

34 CFR 668.183 – Calculating and applying cohort default rates

This section describes the methods used to identify the borrowers in repayment and in default, who are included in a specific cohort.

Respondents Responses Hours

For profit institutions

4,192 7,847 510

34 CFR 668.184 – Determining cohort default rates for institutions that have undergone a change in status

This section describes the methods used to establish a cohort default rate for institutions that have undergone acquisition or merged, those who have acquired branches or additional locations, and those branches or locations that became freestanding.

Respondents Responses Hours

For profit institutions

4,192 7,847 510

34 CFR 668.185 – Draft cohort default rates and your ability to challenge before official cohort default rates are issued.

This section discusses how an institution will receive draft cohort default rates and the methods that can be used to challenge the rate prior to official rates being calculated and released.

Respondents Responses Hours

For profit institutions

4,192 7,847 510

34 CFR 668.186 – Notice of your official cohort default rate

This section describes how institutions will receive official cohort default rates and provides the timeframe for submitting challenges to the data.

Respondents Responses Hours

For profit institutions

4,192 7,847 510

34 CFR 668.187 – Consequences of cohort default rates on your ability to participate in Title IV, HEA programs

This section discusses how an institution that loses its eligibility to participate in specific Federal student aid programs and how an institution may regain its eligibility.

Respondents Responses Hours

For profit institutions

4,192 7,847 510

34 CFR 668.188 – Preventing evasion of the consequences of cohort default rates

This section discusses how institutions may be affected by the loss of eligibility at another institution under common ownership or management.

Respondents Responses Hours

For profit institutions

4,192 7,847 510

34 CFR 668.189 – General requirements for adjusting official cohort default rates and for appealing their consequences

This section describes how institutions may request adjustments to or appeal their official cohort default rate.

Respondents Responses Hours

For profit institutions

4,192 7,847 510

34 CFR 668.190 – Uncorrected data adjustments

This section describes the eligibility to raise this defense to correct an official cohort default rate.

Respondents Responses Hours

For profit institutions

4,192 7,847 510

34 CFR 668.191 – New data adjustments

This section describes the eligibility to raise this defense to correct an official cohort default rate.

Respondents Responses Hours

For profit institutions

4,192 7,847 510

34 CFR 668.192 – Erroneous data appeals

This section describes the eligibility to raise this defense to correct an official cohort default rate.

Respondents Responses Hours

For profit institutions

4,192 7,847 510

34 CFR 668.193 – Loan servicing appeals

This section describes the eligibility to raise this defense to correct an official cohort

default rate.

Respondents Responses Hours

For profit institutions

4,192 7,847 510

34 CFR 668.194 – Economically disadvantaged appeals

This section describes the eligibility to raise this defense to correct an official cohort default rate.

Respondents Responses Hours

For profit institutions

4,192 7,847 510

34 CFR 668.195 – Participation rate index appeals

This section describes the eligibility to raise this defense to correct an official cohort default rate.

Respondents Responses Hours

For profit institutions

4,192 7,847 510

34 CFR 668.196 – Average rate appeals

This section describes the eligibility to raise this defense to correct an official cohort default rate.

Respondents Responses Hours

For profit institutions

4,192 7,847 510

34 CFR 668.197 – Thirty-or-fewer borrower appeals

This section describes the eligibility to raise this defense to correct an official cohort default rate.

Respondents Responses Hours

For profit institutions

4,192 7,847 510

TOTALS

Responses 313,895

Respondents 167,698

Burden Hours 636,835

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