Change in Ownership Notification to Students

1845-0168 – Affected Entity – For-Profit Institutions 83C request 3/6/2023

On October 4, 2021, the Department convened a negotiated rulemaking committee, the Affordability and Student Loans Committee, to consider regulations for the Federal Student Aid programs authorized under title IV of the Higher Education Act of 1965, as amended, (HEA). The Secretary proposed regulations to clarify the process for consideration of changes in ownership and control, to promote compliance with the HEA and related regulations and reduce risk for students and taxpayers.

To address the risks that some changes in ownership of postsecondary institutions present to students and taxpayers, the Department proposed under the authority of section 498(i) of the HEA to amend regulations covering changes in ownership. These final regulations are a result of negotiated rulemaking in 2021 and add new requirements to the current regulations.

Specifically, the final regulations add new §600.20(g)(4), which require institutions to notify enrolled and prospective students at least 90 days prior to the proposed change in ownership to provide them with adequate notice and information about the operations of their institution.

On November 28, 2022, OMB provided a Notice of Action (NOA) approving the information collection regarding Change of Ownership regulations finalized in the Federal Register October 28, 2022. The final regulations added new §600.20(g)(4), which require institutions to notify enrolled and prospective students at least 90 days prior to the proposed change in ownership to provide them with adequate notice and information about the operations of their institution. There was a change in the number of hours anticipated for institutions to provide such notice from the Notice of Proposed Rulemaking (NPRM) to the Final Rule. The NPRM proposed 28 hours however the Final Rule provided for 140 hours. There was no change in the number of respondents/responses. The NOA posted the NPRM hours not the updated Final Rule. This is a request to correct the hours on the NOA to be 140 hours.

Based on a GAO report, using the 59 institutional changes of ownership over a period of 9 years, we anticipate that an estimate of 7 institutions annually would require 20 hours to develop and post the required notice on the institution’s intra- and internet sites for a total of 140 hours (7 X 20 hours = 140 hours).

TOTALS

Respondents 7

Responses 7

Burden Hours 140