1845-0096 For-Profit Institutions Information 90-10 NPRM2 2022

1845-0096 Affected Entity – For-Profit Institutions 7/26/2022

The Department of Education (the Department) proposes to amend the Student Assistance General Provisions regulations to implement changes to § 668.28 – Non-Federal revenue (90/10). These proposed changes are based on requirements of the American Rescue Plan of 2021 which amended Section 487 of the Higher Education Act of 1965, as amended, (HEA). These proposed regulations are a result of negotiated rulemaking in 2021 and would add new requirements to the current regulations.

The proposed regulations would amend the heading of §668.28 and references throughout the section to change “non-title IV revenue” to “non-Federal funds”.

The proposed regulations would amend §668.28(a)(2) to create a disbursement rule that outlines how proprietary institutions calculate the percentage of their revenue that is Federal revenue and creates an end-of-fiscal-year deadline for proprietary institutions to request and disburse title IV funds to students.

The proposed regulations would also modify §668.28(c)(3) with the steps that proprietary institutions must take if they fail to derive at least 10 percent of their revenue from allowable non-Federal sources by requiring them to notify students of the failure and the students’ potential loss of title IV aid at that proprietary institution.

This is a request for an increase in burden due to a proposed regulation based on a statutory change. The Department is requesting an increase of 39,732 hours for 1,683 responses at 1,650 institution.

Affected Entity Respondent Responses Total Burden Cost

For-Profit Inst. 1,650 1,683 39,732 $1,851,114

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Respondents

Responses

Burden Hours