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ua14no94 DEPARTMENT OF ENERGY (DOE)...


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Washington, DC 20202
202 708-7888
RIN: 1840-AB44
_______________________________________________________________________
ED--OPE
27. FEDERAL DIRECT STUDENT LOAN PROGRAM
Legal Authority:


 20 USC 1087 et seq


CFR Citation:


 34 CFR 685


Legal Deadline:


None


Abstract:


The regulations are needed to implement certain provisions of the 
Omnibus Budget Reconciliation Act of 1993. These regulations would 
establish standards, criteria, procedures and other requirements for 
participation in the Direct Loan Program in the 1995-1996 and 
subsequent academic years.


Statement of Need:


The Student Loan Reform Act of 1993 established the Federal Direct 
Student Loan Program under the Higher Education Act of 1965, as amended 
(HEA). See subtitle A of the Omnibus Budget Reconciliation Act of 1993 
(Pub. L. 103-66, enacted August 10, 1993). Under the Federal Direct 
Student Loan Program, loan capital is provided directly to student and 
parent borrowers by the Federal Government rather than through private 
lenders as in the Federal Family Education Loan Program.


The statute directs the Secretary to exercise discretion in the 
selection of schools participating in the program so that loans made 
under the program represent no more than 5 percent of new student loan 
volume for academic year 1994-1995, 40 percent for academic year 1995-
1996, 50 percent for academic years 1996-1997 and 1997-1998, and 60 
percent for the academic year that begins in 1998.


Regulations are necessary to establish the standards, criteria, and 
procedures to implement this program. For the first year of the program 
(1994-1995), to the extent reasonable and necessary for successful 
implementation, the Secretary is authorized to establish these 
standards, procedures, and criteria through a notice published in the 
Federal Register. Beginning with academic year 1995-1996, all 
standards, criteria, procedures, and other implementing regulations are 
required, to the extent practicable, to be developed through a 
negotiated rulemaking process (20 U.S.C. 1087g).


Alternatives:


In order to comply with the statutory requirement for negotiated 
rulemaking, the Secretary of Education and the Assistant Secretary for 
Postsecondary Education established the Direct Student Loan Regulations 
Advisory Committee which assisted in developing proposed regulations. 
The committee was composed of representatives of all the significantly 
affected interests and considered various alternatives in developing 
the regulations, including the need for any regulations at all.


Anticipated Costs and Benefits:





Regulations are needed to provide a framework for the Federal Direct 
Student Loan Program and implement statutory requirements. The 
regulations are expected to impose minimal requirements necessary to 
ensure the appropriate use of program funds and will not impose costly 
and excessive regulatory burdens or require unnecessary Federal 
supervision. Cost implications are among the considerations during 
regulatory negotiation.


Risks:


These regulations would not address a risk to public health, safety, or 
the environment.


Timetable:
_______________________________________________________________________
Action                                 DFR Cite

_______________________________________________________________________
NPRM            59 FR 42626                                    08/18/94
NPRM Comment Period End                                        10/03/94
Final Action                                                   12/00/94
Small Entities Affected:


None


Government Levels Affected:


None


Agency Contact:
Rachel Edelstein
Program Specialist
Federal Direct Student Loan Program
Department of Education
Office of Postsecondary Education
400 Maryland Avenue SW.
Room 3022, ROB-3
Washington, DC 20202
202 708-9406
RIN: 1840-AC05
_______________________________________________________________________
ED--Office of Vocational and Adult Education (OVAE)
            ___________________________________________________________
PROPOSED RULE STAGE
            ___________________________________________________________
28. <bullet> SCHOOL-TO-WORK OPPORTUNITIES PROGRAM
Legal Authority:


 PL 103-239


CFR Citation:


 None


Legal Deadline:


None


Abstract:


The School-to-Work Opportunities Act establishes a national framework 
for the development of a School-to-Work Opportunity system in every 
State to provide American youth with the knowledge and skills needed to 
make an effective transition from school to a first job in a high-
skill, high-wage career or to further education and training.


Statement of Need:


Under the Act, Federal funds will be used as venture capital to 
stimulate State and local creativity in establishing statewide School-
to-Work Opportunities systems. To promote this systemic reform, the Act 
would provide State and local participants with a substantial degree of 
flexibility to experiment, or to build upon and enrich current 
promising programs, in fashioning their systems. However, under the 
Act, all State systems must share certain common features and basic 
program components. Moreover, through the formation of partnerships 
among secondary and postsecondary educational institutions, public and 
private employers, labor organizations, government, community groups, 
parents, other key groups, communities will take ``ownership'' and 
responsibility for giving American youth access to high-level skills 
and meaningful employment opportunities.


Programs funded under the Act will be jointly administered by the 
Departments of Education and Labor. The Act is also compatible with, 
and builds on, related State and local School-to-Work grant activities 
supported by both Departments under the current Job Training 
Partnership Act and the Carl D. Perkins Vocational and Applied 
Technology Education Act (Perkins Act). The Act authorizes an 
appropriation to the Secretaries of Education and Labor of $300 million 
for fiscal year 1995, and such sums as may be necessary for each of the 
fiscal years 1996 through 1999.


Alternatives:


Title V of the Act authorizes the Secretaries of Education and Labor to 
grant waivers of statutory and regulatory requirements of certain 
Federal job-training and education programs administered by the 
Departments of Labor and Education to all States (and through States to 
local partnerships) that have approved State plans. The purpose of the 
waivers would be to remove impediments to the ability of a State or 
local partnership to carry out an effective School-to-Work 
Opportunities Program. Title V also authorizes local partnerships that 
carry out programs under the Act in high-poverty schools to combine 
resources under certain education and job-training programs 
administered by the Departments in order to carry out ``schoolwide'' 
School-to-Work Opportunities Programs in these schools. In addition, 
Title V authorizes States with approved State plans to combine funds 
under this Act with certain funds under the Perkins Act and the Job 
Training Partnership Act to implement their statewide School-to-Work 
Opportunities systems. The Secretaries will consider appropriate 
alternatives to regulations, and they expect to fully utilize the 
flexibility permitted under the statute.


Anticipated Costs and Benefits:


If regulations are published to implement the Act, they would be 
expected to impose minimal requirements necessary to ensure the proper 
expenditure of Federal funds consistent with the School-to-Work 
Opportunities Initiative. A more exact estimate of the anticipated 
costs and benefits will be made as soon as the scope of implementing 
regulations, if any, incorporating the flexibility permitted under the 
Act, has been determined.


Risks:


These regulations would not address a risk to public health, safety, or 
the environment.


Timetable:
_______________________________________________________________________
Action                                 DFR Cite

_______________________________________________________________________
NPRM                                                           00/00/00
Final Action                                                   00/00/00
Small Entities Affected:


Undetermined


Government Levels Affected:


State, Local


Agency Contact:
Ron Castaldi
Department of Education
Office of Vocational and Adult Education
400 Maryland Avenue SW.
Room 4327, Switzer Building
Washington, DC 20202
202 205-8981
RIN: 1830-AA14
BILLING CODE 4000-01-F

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