1845-NEW4 Proprietary Institutions Affected Party Information NPRM4 2023 rev

1845-NEW4 – Affected Public – For-Profit Institutions 5/15/2023

On January 18, 2022, the Department convened a negotiated rulemaking committee, the Institutional and Programmatic Eligibility Committee, to consider proposed regulations for the Federal Student Aid programs authorized under title IV of the Higher Education Act of 1965, as amended, (HEA). Through the Notice of Proposed Rulemaking (NPRM), docket number ED-2022-OPE-0062, the Secretary proposes new regulations to promote transparency, competence, stability, and effective outcomes for students in the provision of postsecondary education.

The NPRM proposes, under new § 668.605, to require institutions to provide warnings to current and prospective students if a Gainful Employment (GE) program is at risk of a loss of title IV, HEA eligibility, to specify the content and delivery requirements for such notifications, and to provide that students must acknowledge having seen the warning before the institution may disburse any title IV, HEA funds. In addition to providing the English-language warnings, the institution would be required to provide accurate translations of the English-language warning into the primary languages of current and prospective students with limited English proficiency.

This is a request for a new collection.

The proposed NPRM regulatory language in § 668.605 would add burden to institutions. The proposed changes in § 668.605 would require institutions to provide warning notices to enrolled and prospective students that a GE program has unacceptable debt-to-earnings (D/E) rates or an unacceptable earnings premium measure for the year in which the D/E rates or earnings premium measure were most recently calculated by the Department along with warnings about the potential loss of title IV eligibility.

We believe that most institutions would develop the warning and make it available electronically to current and prospective students. We believe that this action would require an estimated 1 hour per affected program.

We estimate that it would take proprietary institutions 1,524 hours (1,524 programs x 1 hour = 1,524) to develop and deliver the required warning based on the information provided by the Department.

The proposed changes in § 668.605 (d) would require institutions to provide alternatives to the English-language warning notices to enrolled and prospective students with limited English proficiency.

We estimate that it would take proprietary institutions 12,192 hours (1,524 programs x 8 hours = 12,192) to develop and deliver the required alternate language the required warning based on the information provided by the Department.

TOTALS

Responses – 3,048

Respondents - 873

Burden Hours – 13,716

Paperwork Burden Statement

According to the Paperwork Reduction Act of 1995, no persons are required to respond to a collection of information unless such collection displays a valid OMB control number. The valid OMB control number for this information collection is 1845-NEW4. Public reporting burden for this collection of information is estimated to average 10 minutes per response, including time for reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information. The obligation to respond to this collection is required to obtain or retain a benefit (34 CFR 668.605). If you have comments or concerns regarding the status of your individual submission of this information, please contact Beth Grebeldinger at [email protected] directly.