81_FR_54209 81 FR 54052 - Notice Inviting Postsecondary Educational Institutions To Participate in Experiments Under the Experimental Sites Initiative; Federal Student Financial Assistance Programs Under Title IV of the Higher Education Act of 1965, as Amended

81 FR 54052 - Notice Inviting Postsecondary Educational Institutions To Participate in Experiments Under the Experimental Sites Initiative; Federal Student Financial Assistance Programs Under Title IV of the Higher Education Act of 1965, as Amended

DEPARTMENT OF EDUCATION

Federal Register Volume 81, Issue 157 (August 15, 2016)

Page Range54052-54056
FR Document2016-19297

The Secretary invites institutions of higher education (institutions) that participate in the Federal student financial assistance programs authorized under title IV of the Higher Education Act of 1965, as amended (HEA), to apply to participate in a new institutional experiment under the Experimental Sites Initiative (ESI). Under the ESI, the Secretary has authority to grant waivers of certain title IV, HEA statutory or regulatory requirements to allow a limited number of institutions to participate in experiments to test alternative methods of administering the title IV, HEA programs. The alternative methods of title IV, HEA administration that the Secretary is permitting under this ESI experiment are designed to facilitate efforts by institutions to evaluate certain innovative loan counseling practices that can prepare students to manage their college finances, inform them about their student loan repayment options, and ensure students are well-prepared to repay their loans on time. Under this experiment, participating institutions will have the flexibility to require additional loan counseling for student borrowers beyond the statutorily required one-time entrance and one-time exit counseling as a condition for the students to receive Direct Loan funds, and to customize counseling based on students' needs.

Federal Register, Volume 81 Issue 157 (Monday, August 15, 2016)
[Federal Register Volume 81, Number 157 (Monday, August 15, 2016)]
[Notices]
[Pages 54052-54056]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-19297]


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DEPARTMENT OF EDUCATION


Notice Inviting Postsecondary Educational Institutions To 
Participate in Experiments Under the Experimental Sites Initiative; 
Federal Student Financial Assistance Programs Under Title IV of the 
Higher Education Act of 1965, as Amended

AGENCY: Office of Postsecondary Education, Department of Education.

ACTION: Notice.

-----------------------------------------------------------------------

SUMMARY:  The Secretary invites institutions of higher education 
(institutions) that participate in the Federal student financial 
assistance programs authorized under title IV of the Higher Education 
Act of 1965, as amended (HEA), to apply to participate in a new 
institutional experiment under the Experimental Sites Initiative (ESI).
    Under the ESI, the Secretary has authority to grant waivers of 
certain title IV, HEA statutory or regulatory requirements to allow a 
limited number of institutions to participate in experiments to test 
alternative methods of administering the title IV, HEA programs. The 
alternative methods of title IV, HEA administration that the Secretary 
is permitting under this ESI experiment are designed to facilitate 
efforts by institutions to evaluate certain innovative loan counseling 
practices that can prepare students to manage their college finances, 
inform them about their student loan repayment options, and ensure 
students are well-prepared to repay their loans on time.
    Under this experiment, participating institutions will have the 
flexibility to require additional loan counseling for student borrowers 
beyond the statutorily required one-time entrance and one-time exit 
counseling as a condition for the students to receive Direct Loan 
funds, and to customize counseling based on students' needs.

DATES: Letters of Interest to participate in the experiment described 
in this notice must be received by the Department no later than 
September 29, 2016 to ensure that the Department considers the 
institution for participation in the experiment. Letters received after 
September 29, 2016 may, at the discretion of the Secretary, be 
considered for participation.

ADDRESSES: Letters of Interest must be submitted by electronic mail to 
the following email address: [email protected]. For format and 
other required information, see ``Instructions for Submitting Letters 
of Interest'' under SUPPLEMENTARY INFORMATION.

FOR FURTHER INFORMATION CONTACT: Warren Farr, U.S. Department of 
Education, Federal Student Aid, 830 First Street NE., Washington, DC 
20002. Telephone: (202) 377-4380 or by email at: [email protected].
    If you use a telecommunications device for the deaf (TDD) or a text 
telephone (TTY), call the Federal Relay Service (FRS), toll free, at 1-
800-877-8339.

SUPPLEMENTARY INFORMATION:  Instructions for Submitting Letters of 
Interest: Letters of Interest should be in an Adobe Portable Document 
Format (PDF) attachment to an email message sent to the email address 
provided in the ADDRESSES section of this notice. The subject line of 
the email should read ``ESI 2016--Additional Loan Counseling.'' The 
text of the email should include the name and address of the 
institution. The Letter of Interest should be on institutional 
letterhead and be signed by the institution's financial aid 
administrator. The Letter of Interest must include the institution's 
official name and its Office of Postsecondary Education Identification 
(OPEID) number, and the name of a contact person at the institution, 
along with a mailing address, email address, FAX number, and telephone 
number of a person at the institution. The letter should also include 
the information described in the ``Application and Selection'' section 
in this notice. Upon receipt of a Letter of Interest, the Department 
will notify the institution by email that its Letter of Interest was 
received. This notification should be kept in the institution's 
records.

Background

    Accurate and timely loan information is crucial for students to 
make informed decisions about borrowing and to understand their 
repayment obligations

[[Page 54053]]

and options. However, there is limited research on the effectiveness of 
loan counseling, including which types of content and modes of delivery 
of loan counseling are most effective in helping students to understand 
and manage their debt, as well as when and how often counseling should 
occur to be most effective.
    Since the start of his Administration, President Obama has outlined 
an ambitious agenda to make college more affordable for American 
families and promote student success. In his June 9, 2014, Presidential 
Memorandum for the Secretary of Treasury and the Secretary of 
Education, the President directed the agencies to focus their efforts 
on providing initiatives that help Federal student loan borrowers 
manage their debt.
    In support of the President's agenda, the Secretary, under the 
Experimental Sites authority in section 487A(b) of the HEA, is offering 
institutions the opportunity to participate in the experiment described 
in this notice. The experiment will provide institutions the 
flexibility to require, as a condition for a student to receive Direct 
Loan funds, loan counseling that is in addition to the entrance and 
exit counseling currently required under statute.
    Section 485(l)(1)(A) of the HEA requires that each institution 
ensure that first-time borrowers receive comprehensive information on 
the terms and conditions of the loan and of the responsibilities the 
borrower has with respect to the loan. This information must be 
provided in a simple and understandable format.
    The Department's regulations at 34 CFR 685.304(a) require 
institutions to ensure that entrance counseling is conducted with each 
Direct Subsidized Loan or Direct Unsubsidized Loan student borrower 
prior to making the first disbursement of the proceeds of a loan to the 
borrower, unless the borrower has previously completed entrance 
counseling at that institution or at another institution, regardless of 
when that counseling occurred. These regulations do not allow 
institutions to require counseling as a condition of disbursement 
beyond the required first-time entrance counseling and required exit 
counseling, though the institution may offer such counseling to 
students on a voluntary basis.
    The purpose of this experiment is to test the effectiveness of 
requiring additional loan counseling beyond the counseling that is 
statutorily required. The additional loan counseling is expected to 
help borrowers better understand their repayment options and 
obligations and make more informed decisions about their debt. The 
experiment may also identify the types of borrowers who have benefitted 
most from additional loan counseling. The Department hopes to learn if 
the additional loan counseling:
     Positively influences students' decision-making about 
borrowing;
     Promotes successful repayment of student loans, including 
reducing delinquencies and defaults; and
     Has an impact on students' academic performance (e.g., 
grades and time-to-completion).
    We also seek to learn whether different types of content and modes 
of delivery of loan counseling are more or less effective in promoting 
the above outcomes. This experiment can inform any future policy 
changes around loan counseling and efforts to inform borrowers about 
repayment plans and progress.
    Details of this experiment are provided in the section titled ``The 
Experiment'' below.

The Experiment

Description

    Under the experiment, an institution will require all of its 
eligible Direct Loan borrowers who have previously completed first-time 
entrance counseling to participate in the experiment (or for some large 
institutions, a subset of those borrowers), with approximately half of 
those borrowers randomly assigned by the Department to complete 
additional required counseling beyond the entrance counseling normally 
provided to first-time borrowers as a condition of receiving their 
Direct Loan funds.
    Institutions with particularly large numbers of borrowers who would 
be eligible for the experiment may request to include in the experiment 
a subset of those borrowers each year. The size of the subset will be 
determined by the Department in consultation with the institution and 
will take into consideration the overall number of students needed to 
estimate impacts for groups of institutions using similar counseling 
models. Once the size of the subset is determined, students will be 
randomly selected by the Department from the larger group of borrowers 
to be included in the subset and to participate in the experiment, 
either in the treatment group or in the control group.
    The Department will assign all borrowers who have been determined 
to be participants in the experiment to either the treatment group or 
to the control group. Borrowers assigned to the treatment group will be 
required to participate in additional loan counseling beyond the 
entrance counseling they completed as first-time borrowers, as a 
condition of receiving a Direct Loan. Borrowers assigned to the control 
group cannot be required to complete, but may do so voluntarily, any 
additional loan counseling beyond the already-completed entrance 
counseling and the statutorily required exit counseling.
    Under the experiment, institutions cannot require additional 
counseling more than once for each of the student's Direct Loan loan 
periods (generally once for each academic year). Therefore, students 
who are already required to participate in entrance counseling in any 
year (i.e., a first-time borrower at any institution) will not be 
included in the experiment for that year. Only students who completed 
their loan counseling during a prior year (whether for enrollment at 
the participating institution or at a different institution) will be 
included in the experiment for subsequent years.
    If an institution participating in the experiment currently offers 
voluntary additional loan counseling to students, it may continue to do 
so during its participation in the experiment. If an institution does 
not provide voluntary additional loan counseling, it may not begin to 
do so during its participation in the experiment. To the extent 
possible, the Department will require institutions to provide 
information regarding the students in the control group who utilize the 
institution's voluntary additional loan counseling.

Institutional Flexibilities

    An institution participating in the experiment will have 
flexibility in the content and modes of delivery of its additional loan 
counseling (e.g., online, individual in-person, group in-person, 
student-to-student). The institution will be allowed to choose the 
counseling approach it will use for the required additional counseling 
by choosing one of the following: The Department's Financial Awareness 
Counseling Tool (FACT); a third-party counseling product or third-party 
servicer; or institutionally developed alternative counseling.
    The additional required counseling provided to borrowers by 
participating institutions may vary based on the students' expected 
remaining time to complete their program. That counseling may also vary 
for different groups of students depending on their prior borrowing.
    The institution may include, as part of its additional counseling, 
a test or other evaluation to assess the student's knowledge of the 
information presented

[[Page 54054]]

as long as the test or evaluation is presented in a format accessible 
to students with disabilities, including students with visual or 
hearing impairments, and is in a language understandable by students 
with limited English proficiency. This may require the use of 
interpreters for oral or written communications with such students, as 
well as translations of written materials provided to such students. 
However, any such evaluation may not impede a student's ability to 
borrow, for example, by establishing a passing score for the test or 
evaluation before the student can receive Direct Loan funds.

Institutional Requirements

    Institutions participating in this experiment will be required to:
     Work with the Department to establish the number of its 
Direct Loan borrowers who will be included as participants in the 
experiment.
     Track and provide data to the Department for its borrowers 
who were assigned by the Department to the treatment group and its 
borrowers who were assigned to the control group.
     Ensure that the additional counseling required of the 
borrowers in the treatment group is reasonable as to time and effort, 
and is relevant to the student's borrowing decisions; and that the 
additional counseling is not biased or restricted based on students' 
religion, national origin, race, color, sex, socioeconomic status 
(including income), disability, place of residence, physical location 
where the student will be enrolled, or educational program.
     Ensure that the additional loan counseling does not 
discourage students from taking on debt needed to successfully complete 
their studies, while not over-borrowing taking into account anticipated 
earnings.
     Make loan counseling reasonable and not so burdensome that 
it becomes a barrier to receiving Direct Loan funds.
     Ensure that for each particular year, Direct Loan 
borrowers already required to receive loan entrance counseling at that 
institution (i.e., first-time borrowers) are not subject to required 
additional counseling for that year. These students would be eligible 
to participate in this experiment in subsequent years.
     Disclose to all borrowers included in the experiment (both 
those in the treatment group and those in the control group) that the 
institution is participating in an experiment related to loan 
counseling and that some of the students in the experiment may be 
required to participate in additional loan counseling as a condition of 
receiving Direct Loan funds.
     Inform students who have been selected to receive 
additional counseling that their Direct Loan disbursements are 
conditional upon completion of that counseling.
     Ensure that the institution's policy for providing 
counseling under the experiment remains consistent throughout the 
institution's participation in the experiment. A participating 
institution is also expected to ensure that its delivery of counseling 
does not change significantly during the institution's participation in 
the experiment.
    The Department will perform ongoing monitoring during the 
experiment to ensure that participating institutions meet these 
requirements throughout their participation in the experiment.
    All counseling provided to borrowers must deliver information that, 
at a minimum, includes the total amount of the borrowers' student loan 
indebtedness. The institution may customize the counseling based on the 
borrower's needs. However, the Department encourages participating 
institutions to include in its additional counseling the following 
information, where relevant, to assist students in making more informed 
borrowing decisions:
     Comprehensive information on the terms and conditions of 
Federal student loans, including information about annual and aggregate 
limits, interest rates, how interest accrues, loan fees for Federal 
student loans, and the responsibilities the borrower has with respect 
to such loans.
     A reminder that students will be required to repay their 
loans even if they do not complete the academic program.
     Information that indicates that completing an academic 
program will increase the students' ability to successfully repay their 
loans.
     Information about the requirement to complete additional 
counseling and to complete exit counseling upon leaving the 
institution.
     A statement that, when determining whether and how much to 
borrow, students should consider how much they can reasonably expect to 
earn after leaving their academic program of study. As part of this 
statement, the institution may provide other relevant information, such 
as earnings data, Gainful Employment disclosures required under 34 CFR 
668.412(a), and cohort default rate, if available and/or applicable.
     Comprehensive information about the different terms and 
features of Direct Loan repayment options and forgiveness benefits, 
including information about income-driven repayment plans, Public 
Service Loan Forgiveness, and Teacher Loan Forgiveness, and information 
about student loan deferments and forbearances.
     A reminder that information and assistance with Federal 
student loans, such as loan consolidation, rehabilitation, and 
participation in income-driven repayment plans, are provided by the 
Department at no charge and that the borrower does not need to pay 
someone for help.
     Information about establishing a relationship with a loan 
servicer, including, among other things, keeping address and contact 
information up-to-date and learning who to contact and how to ask 
questions.
     Information about the Department's Federal Student Aid 
Ombudsman Group, including a description of the services it provides 
and contact information.
     Information about the Department's Federal Student Aid 
Feedback System (see Electronic Announcement published July 1, 2016, 
``Federal Student Aid Launches Online Feedback System,'' located on the 
Information for Financial Aid Professionals (IFAP) Web site).

Waivers

    Institutions selected for this experiment will be granted 
flexibility in implementing their Direct Loan counseling program. 
Section 485(l)(1)(A) of the HEA and 34 CFR 685.304(a)(1) and (a)(2) 
provide that an institution must ensure that entrance counseling is 
conducted with each Direct Loan student borrower prior to making the 
first disbursement of the loan, unless the borrower has received a 
prior Direct Loan or a Federal Family Education Loan.
    However, institutions participating in this experiment will require 
additional counseling for their Direct Loan borrowers included in the 
treatment group. The additional counseling approaches to be used (i.e., 
the Department's FACT product; a third-party counseling product or 
third-party servicer; or institutionally developed alternative 
counseling) must be identified by the institution in its Letter of 
Interest. If the institution enters into an agreement with a third 
party to provide the additional counseling, that agreement is subject 
to the third-party servicer requirements of the regulations in 34 CFR 
668.25. As is required for all third-party servicers, such third 
parties must protect all student information they receive from the 
institution.

[[Page 54055]]

    All other provisions and regulations of the title IV, HEA student 
assistance programs will remain in effect.

Reporting and Evaluation

    The Department is interested in assessing the impact of requiring 
additional loan counseling for students attending different types of 
institutions. The evaluation will allow the Department to examine the 
effectiveness of requiring additional counseling across all of the 
institutions and students participating in the experiment, as well as 
for groups of institutions using similar types of content and modes of 
delivery of loan counseling for groups of borrowers.
    To support an evaluation of the impact of a policy change similar 
to the one tested in this experiment, the design of the evaluation 
requires data from both a treatment group of students required to 
participate in additional loan counseling and a control group of 
students who received their student aid under existing rules.
    Participating institutions will, on a regular basis, provide to the 
Department a list containing identifying information for each of the 
institution's Direct Loan student borrowers who had previously received 
entrance counseling from the institution or from a different 
institution. Those borrowers will be considered for inclusion in the 
experiment for the subsequent year.
    The Department will assign each eligible borrower to either the 
treatment group, which will receive the additional loan counseling, or 
to the control group, for which the institution may not require any 
additional loan counseling.
    Once a borrower is placed into the treatment or control group, the 
borrower must remain in that group throughout the borrower's enrollment 
at the institution during the institution's participation in the 
experiment.
    To obtain some key outcome measures (e.g., receipt and amount of 
loan funds, academic progression, completion or withdrawal), the 
Department will draw on information contained in the Department's 
systems.
    In addition, each institution will be required to provide to the 
Department existing school records for all students participating in 
the experiment (whether assigned to the treatment or control group) for 
the purpose of assessing the impacts of the additional loan counseling 
intervention. The records will likely include the borrower's academic 
information (e.g., credits taken, credits earned, grade point average, 
completion information, and credentials earned) as well as financial 
information (e.g., cost of attendance, State and institutional aid 
received, non-Federal loans received, and other information relating to 
financial aid received by the borrower).
    Finally, on an annual basis, institutions participating in the 
experiment will be required to provide information about the method and 
content of the loan counseling and of their experiences with the 
experiment. The Department will collect from each participating 
institution the details and components of the additional counseling 
that the institution requires, including the content and method of 
delivery (e.g., individual in-person counseling, group counseling, Web-
based counseling) for each cohort of students. Institutions will 
receive more specific information about evaluation and reporting 
requirements prior to the start of the experiment.
    Institutions participating in this experiment will be required to 
submit a narrative description and self-assessment of their 
implementation of the experiment. At a minimum, the narrative should 
include any unforeseen challenges and unexpected benefits.

Application and Selection

    Institutions are invited to apply to participate in the experiment 
described in this notice. The Department is interested in information 
such as: (1) An estimate of the number of the institution's Direct Loan 
borrowers who, for an award year, have previously completed entrance 
counseling and, if the institution believes it does not have the 
capacity to include all of those borrowers in the experiment, an 
estimate of the number of borrowers it wishes to include in the 
experiment (both in the control and treatment groups) for each award 
year; (2) how the additional counseling will be provided, e.g., through 
the Department's FACT product, a third-party counseling product or a 
third-party servicer, or an institutionally developed alternative; (3) 
a brief description of the additional counseling that the institution 
proposes to use in the experiment, including its content and mode of 
delivery; and (4) how the institution's proposed approach to additional 
loan counseling is supported by relevant and available research or 
evidence (if applicable) and the source of such research or evidence.
    We understand that the actual number of students who will be 
included in the experiment may be different than the estimate provided 
in the Letter of Interest, as may the proposed counseling method.
    From the institutions that apply, the Secretary will select a 
limited number that represent a diverse cross-section of title IV 
participating institutions to participate in this experiment. In 
choosing participants, the Secretary will consider, among other 
institutional characteristics, the institution's history of compliance 
with the Department's regulatory and statutory requirements for 
participation in the title IV, HEA programs; the institution's 
administrative capability and financial responsibility; and whether the 
institution has adequately described in its Letter of Interest how it 
will comply with the requirements of the experiment outlined in this 
notice.
    In addition to the above items, when selecting institutions to 
participate in the experiment, the Secretary will consider all 
available information, including, but not limited to: Institutional 
type and control, the institution's geographic location, the 
institution's cohort default rate, the median amount of Direct Loan 
funds borrowed by the institution's students, student outcomes (e.g., 
retention and completion rates and loan repayment rates), and the type 
of counseling the institution intends to offer (i.e., FACT, third-party 
product or third-party servicer, or institutionally developed 
counseling).
    The Secretary's selection of institutions will be guided by the 
purpose of the experiment, which is to evaluate alternative delivery 
modes, content, and timing to current counseling requirements, and to 
inform policymakers about any recommended changes to those 
requirements. The ESI does not provide broad regulatory relief or 
general exceptions to the Department's statutory and regulatory 
requirements.
    If a selected institution consists of more than one location (e.g., 
campus), the Secretary may limit the experiment to a single location, 
unless the institution provides the Secretary with a rationale for 
expanding the experiment to one or more of the institution's other 
locations.
    The Secretary will consult with those institutions that have been 
invited to participate in the experiment on the final design of the 
experiment through Webinars or other outreach activities.
    Institutions selected for participation in an experiment will have 
their Program Participation Agreement (PPA) with the Secretary amended 
to reflect the specific statutory or regulatory provisions that the 
Secretary has waived for participants in the experiment at the 
institution. The institution must acknowledge its commitment to 
adequately establish the procedures necessary to successfully 
administer the experiment. The amended PPA will also

[[Page 54056]]

document the agreement between the Secretary and the institution about 
how the experiment will be conducted and will specify the evaluation 
and reporting requirements for the experiment.
    Accessible Format: Individuals with disabilities can obtain this 
document in an accessible format (e.g., braille, large print, 
audiotape, or compact disc) on request to the contact person listed 
under FOR FURTHER INFORMATION CONTACT.
    Electronic Access to This Document: The official version of this 
document is the document published in the Federal Register. Free 
Internet access to the official edition of the Federal Register and the 
Code of Federal Regulations is available via the Federal Digital System 
at: www.thefederalregister.org/fdsys. At this site you can view this document, as well 
as all other documents of this Department published in the Federal 
Register, in text or PDF. To use PDF, you must have Adobe Acrobat 
Reader, which is available free at the site.
    You may also access documents of the Department published in the 
Federal Register by using the article search feature at: 
www.federalregister.gov. Specifically, through the advanced search 
feature at this site, you can limit your search to documents published 
by the Department.

    Program Authority: 20 U.S.C. 1094a(b).

    Dated: August 9, 2016.
Lynn Mahaffie,
Deputy Assistant Secretary for Policy, Planning and Innovation, 
Delegated the Duties of Assistant Secretary for Postsecondary 
Education.
[FR Doc. 2016-19297 Filed 8-12-16; 8:45 am]
 BILLING CODE 4000-01-P



                                                54052                        Federal Register / Vol. 81, No. 157 / Monday, August 15, 2016 / Notices

                                                Reduction Act of 1995 (PRA) (44 U.S.C.                    Information is collected under the                  Direct Loan funds, and to customize
                                                3506(c)(2)(A)), provides the general                    authority of Sections 14005 and 14006,                counseling based on students’ needs.
                                                public and Federal agencies with an                     Division A, of the American Recovery                  DATES: Letters of Interest to participate
                                                opportunity to comment on proposed,                     and Reinvestment Act of 2009, as                      in the experiment described in this
                                                revised, and continuing collections of                  amended by section 1832(b) of Division                notice must be received by the
                                                information. This helps the Department                  B of Public Law 112–10, the Department                Department no later than September 29,
                                                assess the impact of its information                    of Defense and Full-Year Continuing                   2016 to ensure that the Department
                                                collection requirements and minimize                    Appropriations Act, 2011, and the                     considers the institution for
                                                the public’s reporting burden. It also                  Department of Education                               participation in the experiment. Letters
                                                helps the public understand the                         Appropriations Act, 2012 (Title III of                received after September 29, 2016 may,
                                                Department’s information collection                     Division F of Public Law 112–74, the                  at the discretion of the Secretary, be
                                                requirements and provide the requested                  Consolidated Appropriations Act, 2012).               considered for participation.
                                                data in the desired format. ED is                         Dated: August 9, 2016.                              ADDRESSES: Letters of Interest must be
                                                soliciting comments on the proposed                     Tomakie Washington,                                   submitted by electronic mail to the
                                                information collection request (ICR) that                                                                     following email address:
                                                                                                        Acting Director, Information Collection
                                                is described below. The Department of                   Clearance Division, Office of the Chief Privacy       experimentalsites@ed.gov. For format
                                                Education is especially interested in                   Officer, Office of Management.                        and other required information, see
                                                public comment addressing the                           [FR Doc. 2016–19260 Filed 8–12–16; 8:45 am]           ‘‘Instructions for Submitting Letters of
                                                following issues: (1) Is this collection                                                                      Interest’’ under SUPPLEMENTARY
                                                                                                        BILLING CODE 4000–01–P
                                                necessary to the proper functions of the                                                                      INFORMATION.
                                                Department; (2) will this information be                                                                      FOR FURTHER INFORMATION CONTACT:
                                                processed and used in a timely manner;                  DEPARTMENT OF EDUCATION                               Warren Farr, U.S. Department of
                                                (3) is the estimate of burden accurate;                                                                       Education, Federal Student Aid, 830
                                                (4) how might the Department enhance                    Notice Inviting Postsecondary                         First Street NE., Washington, DC 20002.
                                                the quality, utility, and clarity of the                Educational Institutions To Participate               Telephone: (202) 377–4380 or by email
                                                information to be collected; and (5) how                in Experiments Under the Experimental                 at: Warren.Farr@ed.gov.
                                                might the Department minimize the                       Sites Initiative; Federal Student                        If you use a telecommunications
                                                burden of this collection on the                        Financial Assistance Programs Under                   device for the deaf (TDD) or a text
                                                respondents, including through the use                  Title IV of the Higher Education Act of               telephone (TTY), call the Federal Relay
                                                of information technology. Please note                  1965, as Amended                                      Service (FRS), toll free, at 1–800–877–
                                                that written comments received in                                                                             8339.
                                                response to this notice will be                         AGENCY: Office of Postsecondary
                                                                                                        Education, Department of Education.                   SUPPLEMENTARY INFORMATION:
                                                considered public records.
                                                                                                        ACTION: Notice.                                       Instructions for Submitting Letters of
                                                   Title of Collection: Race to the Top—
                                                                                                                                                              Interest: Letters of Interest should be in
                                                Early Learning Challenge Annual                         SUMMARY:    The Secretary invites                     an Adobe Portable Document Format
                                                Performance Report.                                     institutions of higher education                      (PDF) attachment to an email message
                                                   OMB Control Number: 1810–0713.                       (institutions) that participate in the                sent to the email address provided in
                                                   Type of Review: An extension of an                   Federal student financial assistance                  the ADDRESSES section of this notice.
                                                existing information collection.                        programs authorized under title IV of                 The subject line of the email should
                                                   Respondents/Affected Public: State,                  the Higher Education Act of 1965, as                  read ‘‘ESI 2016—Additional Loan
                                                Local, and Tribal Governments.                          amended (HEA), to apply to participate                Counseling.’’ The text of the email
                                                   Total Estimated Number of Annual                     in a new institutional experiment under               should include the name and address of
                                                Responses: 11.                                          the Experimental Sites Initiative (ESI).              the institution. The Letter of Interest
                                                   Total Estimated Number of Annual                        Under the ESI, the Secretary has                   should be on institutional letterhead
                                                Burden Hours: 1,320.                                    authority to grant waivers of certain title           and be signed by the institution’s
                                                   Abstract: The Department of                          IV, HEA statutory or regulatory                       financial aid administrator. The Letter
                                                Education and the Department of Health                  requirements to allow a limited number                of Interest must include the institution’s
                                                and Human Services (Departments) are                    of institutions to participate in                     official name and its Office of
                                                requesting renewal of the currently                     experiments to test alternative methods               Postsecondary Education Identification
                                                approved Annual Performance Report                      of administering the title IV, HEA                    (OPEID) number, and the name of a
                                                for RTT–ELC grantees, without making                    programs. The alternative methods of                  contact person at the institution, along
                                                any material change to the collection                   title IV, HEA administration that the                 with a mailing address, email address,
                                                instrument, instructions, frequency of                  Secretary is permitting under this ESI                FAX number, and telephone number of
                                                collection or use. The information                      experiment are designed to facilitate                 a person at the institution. The letter
                                                submitted in the Annual Performance                     efforts by institutions to evaluate certain           should also include the information
                                                Report is used to verify that grantees are              innovative loan counseling practices                  described in the ‘‘Application and
                                                making substantial progress toward the                  that can prepare students to manage                   Selection’’ section in this notice. Upon
                                                achievement of approved objectives.                     their college finances, inform them                   receipt of a Letter of Interest, the
                                                This grant awarded all funds up front,                  about their student loan repayment                    Department will notify the institution
                                                so the APR will not be used to                          options, and ensure students are well-                by email that its Letter of Interest was
                                                determine continuation awards, but will
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                                                                                                        prepared to repay their loans on time.                received. This notification should be
                                                be used to provide necessary                               Under this experiment, participating               kept in the institution’s records.
                                                performance information and data to                     institutions will have the flexibility to
                                                program staff and to the public. Further,               require additional loan counseling for                Background
                                                this APR form collects aggregate and                    student borrowers beyond the                             Accurate and timely loan information
                                                quantifiable data needed to respond to                  statutorily required one-time entrance                is crucial for students to make informed
                                                the requirements of the Government                      and one-time exit counseling as a                     decisions about borrowing and to
                                                Performance and Results Act (GPRA).                     condition for the students to receive                 understand their repayment obligations


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                                                                             Federal Register / Vol. 81, No. 157 / Monday, August 15, 2016 / Notices                                            54053

                                                and options. However, there is limited                  decisions about their debt. The                       counseling beyond the entrance
                                                research on the effectiveness of loan                   experiment may also identify the types                counseling they completed as first-time
                                                counseling, including which types of                    of borrowers who have benefitted most                 borrowers, as a condition of receiving a
                                                content and modes of delivery of loan                   from additional loan counseling. The                  Direct Loan. Borrowers assigned to the
                                                counseling are most effective in helping                Department hopes to learn if the                      control group cannot be required to
                                                students to understand and manage                       additional loan counseling:                           complete, but may do so voluntarily,
                                                their debt, as well as when and how                       • Positively influences students’                   any additional loan counseling beyond
                                                often counseling should occur to be                     decision-making about borrowing;                      the already-completed entrance
                                                most effective.                                           • Promotes successful repayment of                  counseling and the statutorily required
                                                   Since the start of his Administration,               student loans, including reducing                     exit counseling.
                                                President Obama has outlined an                         delinquencies and defaults; and                          Under the experiment, institutions
                                                ambitious agenda to make college more                     • Has an impact on students’                        cannot require additional counseling
                                                affordable for American families and                    academic performance (e.g., grades and                more than once for each of the student’s
                                                promote student success. In his June 9,                 time-to-completion).                                  Direct Loan loan periods (generally once
                                                2014, Presidential Memorandum for the                      We also seek to learn whether                      for each academic year). Therefore,
                                                Secretary of Treasury and the Secretary                 different types of content and modes of               students who are already required to
                                                of Education, the President directed the                delivery of loan counseling are more or               participate in entrance counseling in
                                                agencies to focus their efforts on                      less effective in promoting the above                 any year (i.e., a first-time borrower at
                                                providing initiatives that help Federal                 outcomes. This experiment can inform                  any institution) will not be included in
                                                student loan borrowers manage their                     any future policy changes around loan                 the experiment for that year. Only
                                                debt.                                                   counseling and efforts to inform                      students who completed their loan
                                                   In support of the President’s agenda,                borrowers about repayment plans and                   counseling during a prior year (whether
                                                the Secretary, under the Experimental                   progress.                                             for enrollment at the participating
                                                Sites authority in section 487A(b) of the                  Details of this experiment are                     institution or at a different institution)
                                                HEA, is offering institutions the                       provided in the section titled ‘‘The                  will be included in the experiment for
                                                opportunity to participate in the                       Experiment’’ below.                                   subsequent years.
                                                experiment described in this notice. The                                                                         If an institution participating in the
                                                experiment will provide institutions the                The Experiment                                        experiment currently offers voluntary
                                                flexibility to require, as a condition for              Description                                           additional loan counseling to students,
                                                a student to receive Direct Loan funds,                                                                       it may continue to do so during its
                                                loan counseling that is in addition to the                 Under the experiment, an institution               participation in the experiment. If an
                                                entrance and exit counseling currently                  will require all of its eligible Direct Loan          institution does not provide voluntary
                                                required under statute.                                 borrowers who have previously                         additional loan counseling, it may not
                                                   Section 485(l)(1)(A) of the HEA                      completed first-time entrance                         begin to do so during its participation in
                                                requires that each institution ensure that              counseling to participate in the                      the experiment. To the extent possible,
                                                first-time borrowers receive                            experiment (or for some large                         the Department will require institutions
                                                comprehensive information on the                        institutions, a subset of those                       to provide information regarding the
                                                terms and conditions of the loan and of                 borrowers), with approximately half of                students in the control group who
                                                the responsibilities the borrower has                   those borrowers randomly assigned by                  utilize the institution’s voluntary
                                                with respect to the loan. This                          the Department to complete additional                 additional loan counseling.
                                                information must be provided in a                       required counseling beyond the
                                                simple and understandable format.                       entrance counseling normally provided                 Institutional Flexibilities
                                                   The Department’s regulations at 34                   to first-time borrowers as a condition of                An institution participating in the
                                                CFR 685.304(a) require institutions to                  receiving their Direct Loan funds.                    experiment will have flexibility in the
                                                ensure that entrance counseling is                         Institutions with particularly large               content and modes of delivery of its
                                                conducted with each Direct Subsidized                   numbers of borrowers who would be                     additional loan counseling (e.g., online,
                                                Loan or Direct Unsubsidized Loan                        eligible for the experiment may request               individual in-person, group in-person,
                                                student borrower prior to making the                    to include in the experiment a subset of              student-to-student). The institution will
                                                first disbursement of the proceeds of a                 those borrowers each year. The size of                be allowed to choose the counseling
                                                loan to the borrower, unless the                        the subset will be determined by the                  approach it will use for the required
                                                borrower has previously completed                       Department in consultation with the                   additional counseling by choosing one
                                                entrance counseling at that institution                 institution and will take into                        of the following: The Department’s
                                                or at another institution, regardless of                consideration the overall number of                   Financial Awareness Counseling Tool
                                                when that counseling occurred. These                    students needed to estimate impacts for               (FACT); a third-party counseling
                                                regulations do not allow institutions to                groups of institutions using similar                  product or third-party servicer; or
                                                require counseling as a condition of                    counseling models. Once the size of the               institutionally developed alternative
                                                disbursement beyond the required first-                 subset is determined, students will be                counseling.
                                                time entrance counseling and required                   randomly selected by the Department                      The additional required counseling
                                                exit counseling, though the institution                 from the larger group of borrowers to be              provided to borrowers by participating
                                                may offer such counseling to students                   included in the subset and to participate             institutions may vary based on the
                                                on a voluntary basis.                                   in the experiment, either in the                      students’ expected remaining time to
                                                   The purpose of this experiment is to                 treatment group or in the control group.
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                                                                                                                                                              complete their program. That
                                                test the effectiveness of requiring                        The Department will assign all                     counseling may also vary for different
                                                additional loan counseling beyond the                   borrowers who have been determined to                 groups of students depending on their
                                                counseling that is statutorily required.                be participants in the experiment to                  prior borrowing.
                                                The additional loan counseling is                       either the treatment group or to the                     The institution may include, as part of
                                                expected to help borrowers better                       control group. Borrowers assigned to the              its additional counseling, a test or other
                                                understand their repayment options and                  treatment group will be required to                   evaluation to assess the student’s
                                                obligations and make more informed                      participate in additional loan                        knowledge of the information presented


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                                                54054                        Federal Register / Vol. 81, No. 157 / Monday, August 15, 2016 / Notices

                                                as long as the test or evaluation is                      • Inform students who have been                     income-driven repayment plans, Public
                                                presented in a format accessible to                     selected to receive additional                        Service Loan Forgiveness, and Teacher
                                                students with disabilities, including                   counseling that their Direct Loan                     Loan Forgiveness, and information
                                                students with visual or hearing                         disbursements are conditional upon                    about student loan deferments and
                                                impairments, and is in a language                       completion of that counseling.                        forbearances.
                                                understandable by students with limited                   • Ensure that the institution’s policy                 • A reminder that information and
                                                English proficiency. This may require                   for providing counseling under the                    assistance with Federal student loans,
                                                the use of interpreters for oral or written             experiment remains consistent                         such as loan consolidation,
                                                communications with such students, as                   throughout the institution’s                          rehabilitation, and participation in
                                                well as translations of written materials               participation in the experiment. A                    income-driven repayment plans, are
                                                provided to such students. However,                     participating institution is also expected            provided by the Department at no
                                                any such evaluation may not impede a                    to ensure that its delivery of counseling             charge and that the borrower does not
                                                student’s ability to borrow, for example,               does not change significantly during the              need to pay someone for help.
                                                by establishing a passing score for the                 institution’s participation in the
                                                                                                        experiment.                                              • Information about establishing a
                                                test or evaluation before the student can
                                                                                                          The Department will perform ongoing                 relationship with a loan servicer,
                                                receive Direct Loan funds.
                                                                                                        monitoring during the experiment to                   including, among other things, keeping
                                                Institutional Requirements                              ensure that participating institutions                address and contact information up-to-
                                                   Institutions participating in this                   meet these requirements throughout                    date and learning who to contact and
                                                experiment will be required to:                         their participation in the experiment.                how to ask questions.
                                                   • Work with the Department to                          All counseling provided to borrowers                   • Information about the Department’s
                                                establish the number of its Direct Loan                 must deliver information that, at a                   Federal Student Aid Ombudsman
                                                borrowers who will be included as                       minimum, includes the total amount of                 Group, including a description of the
                                                participants in the experiment.                         the borrowers’ student loan                           services it provides and contact
                                                   • Track and provide data to the                      indebtedness. The institution may                     information.
                                                Department for its borrowers who were                   customize the counseling based on the                    • Information about the Department’s
                                                assigned by the Department to the                       borrower’s needs. However, the                        Federal Student Aid Feedback System
                                                treatment group and its borrowers who                   Department encourages participating                   (see Electronic Announcement
                                                were assigned to the control group.                     institutions to include in its additional             published July 1, 2016, ‘‘Federal
                                                   • Ensure that the additional                         counseling the following information,                 Student Aid Launches Online Feedback
                                                counseling required of the borrowers in                 where relevant, to assist students in                 System,’’ located on the Information for
                                                the treatment group is reasonable as to                 making more informed borrowing                        Financial Aid Professionals (IFAP) Web
                                                time and effort, and is relevant to the                 decisions:                                            site).
                                                student’s borrowing decisions; and that                   • Comprehensive information on the
                                                the additional counseling is not biased                 terms and conditions of Federal student               Waivers
                                                or restricted based on students’ religion,              loans, including information about                       Institutions selected for this
                                                national origin, race, color, sex,                      annual and aggregate limits, interest                 experiment will be granted flexibility in
                                                socioeconomic status (including                         rates, how interest accrues, loan fees for            implementing their Direct Loan
                                                income), disability, place of residence,                Federal student loans, and the                        counseling program. Section
                                                physical location where the student will                responsibilities the borrower has with                485(l)(1)(A) of the HEA and 34 CFR
                                                be enrolled, or educational program.                    respect to such loans.                                685.304(a)(1) and (a)(2) provide that an
                                                   • Ensure that the additional loan                      • A reminder that students will be
                                                                                                                                                              institution must ensure that entrance
                                                counseling does not discourage students                 required to repay their loans even if
                                                                                                                                                              counseling is conducted with each
                                                from taking on debt needed to                           they do not complete the academic
                                                                                                                                                              Direct Loan student borrower prior to
                                                successfully complete their studies,                    program.
                                                                                                                                                              making the first disbursement of the
                                                while not over-borrowing taking into                      • Information that indicates that
                                                                                                                                                              loan, unless the borrower has received
                                                account anticipated earnings.                           completing an academic program will
                                                   • Make loan counseling reasonable                                                                          a prior Direct Loan or a Federal Family
                                                                                                        increase the students’ ability to
                                                and not so burdensome that it becomes                                                                         Education Loan.
                                                                                                        successfully repay their loans.
                                                a barrier to receiving Direct Loan funds.                 • Information about the requirement                    However, institutions participating in
                                                   • Ensure that for each particular year,              to complete additional counseling and                 this experiment will require additional
                                                Direct Loan borrowers already required                  to complete exit counseling upon                      counseling for their Direct Loan
                                                to receive loan entrance counseling at                  leaving the institution.                              borrowers included in the treatment
                                                that institution (i.e., first-time                        • A statement that, when determining                group. The additional counseling
                                                borrowers) are not subject to required                  whether and how much to borrow,                       approaches to be used (i.e., the
                                                additional counseling for that year.                    students should consider how much                     Department’s FACT product; a third-
                                                These students would be eligible to                     they can reasonably expect to earn after              party counseling product or third-party
                                                participate in this experiment in                       leaving their academic program of                     servicer; or institutionally developed
                                                subsequent years.                                       study. As part of this statement, the                 alternative counseling) must be
                                                   • Disclose to all borrowers included                 institution may provide other relevant                identified by the institution in its Letter
                                                in the experiment (both those in the                    information, such as earnings data,                   of Interest. If the institution enters into
                                                treatment group and those in the control                                                                      an agreement with a third party to
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                                                                                                        Gainful Employment disclosures
                                                group) that the institution is                          required under 34 CFR 668.412(a), and                 provide the additional counseling, that
                                                participating in an experiment related to               cohort default rate, if available and/or              agreement is subject to the third-party
                                                loan counseling and that some of the                    applicable.                                           servicer requirements of the regulations
                                                students in the experiment may be                         • Comprehensive information about                   in 34 CFR 668.25. As is required for all
                                                required to participate in additional                   the different terms and features of Direct            third-party servicers, such third parties
                                                loan counseling as a condition of                       Loan repayment options and forgiveness                must protect all student information
                                                receiving Direct Loan funds.                            benefits, including information about                 they receive from the institution.


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                                                                             Federal Register / Vol. 81, No. 157 / Monday, August 15, 2016 / Notices                                            54055

                                                  All other provisions and regulations                  attendance, State and institutional aid               title IV participating institutions to
                                                of the title IV, HEA student assistance                 received, non-Federal loans received,                 participate in this experiment. In
                                                programs will remain in effect.                         and other information relating to                     choosing participants, the Secretary will
                                                                                                        financial aid received by the borrower).              consider, among other institutional
                                                Reporting and Evaluation                                   Finally, on an annual basis,                       characteristics, the institution’s history
                                                   The Department is interested in                      institutions participating in the                     of compliance with the Department’s
                                                assessing the impact of requiring                       experiment will be required to provide                regulatory and statutory requirements
                                                additional loan counseling for students                 information about the method and                      for participation in the title IV, HEA
                                                attending different types of institutions.              content of the loan counseling and of                 programs; the institution’s
                                                The evaluation will allow the                           their experiences with the experiment.                administrative capability and financial
                                                Department to examine the effectiveness                 The Department will collect from each                 responsibility; and whether the
                                                of requiring additional counseling                      participating institution the details and             institution has adequately described in
                                                across all of the institutions and                      components of the additional                          its Letter of Interest how it will comply
                                                students participating in the                           counseling that the institution requires,             with the requirements of the experiment
                                                experiment, as well as for groups of                    including the content and method of                   outlined in this notice.
                                                institutions using similar types of                     delivery (e.g., individual in-person                     In addition to the above items, when
                                                content and modes of delivery of loan                   counseling, group counseling, Web-                    selecting institutions to participate in
                                                counseling for groups of borrowers.                     based counseling) for each cohort of                  the experiment, the Secretary will
                                                   To support an evaluation of the                      students. Institutions will receive more              consider all available information,
                                                impact of a policy change similar to the                specific information about evaluation                 including, but not limited to:
                                                one tested in this experiment, the design               and reporting requirements prior to the               Institutional type and control, the
                                                of the evaluation requires data from                    start of the experiment.                              institution’s geographic location, the
                                                both a treatment group of students                         Institutions participating in this                 institution’s cohort default rate, the
                                                required to participate in additional                   experiment will be required to submit a               median amount of Direct Loan funds
                                                loan counseling and a control group of                  narrative description and self-                       borrowed by the institution’s students,
                                                students who received their student aid                 assessment of their implementation of                 student outcomes (e.g., retention and
                                                under existing rules.                                   the experiment. At a minimum, the                     completion rates and loan repayment
                                                   Participating institutions will, on a                narrative should include any unforeseen               rates), and the type of counseling the
                                                regular basis, provide to the Department                challenges and unexpected benefits.                   institution intends to offer (i.e., FACT,
                                                a list containing identifying information                                                                     third-party product or third-party
                                                                                                        Application and Selection
                                                for each of the institution’s Direct Loan                                                                     servicer, or institutionally developed
                                                student borrowers who had previously                      Institutions are invited to apply to                counseling).
                                                received entrance counseling from the                   participate in the experiment described                  The Secretary’s selection of
                                                institution or from a different                         in this notice. The Department is                     institutions will be guided by the
                                                institution. Those borrowers will be                    interested in information such as: (1) An             purpose of the experiment, which is to
                                                considered for inclusion in the                         estimate of the number of the                         evaluate alternative delivery modes,
                                                experiment for the subsequent year.                     institution’s Direct Loan borrowers who,              content, and timing to current
                                                   The Department will assign each                      for an award year, have previously                    counseling requirements, and to inform
                                                eligible borrower to either the treatment               completed entrance counseling and, if                 policymakers about any recommended
                                                group, which will receive the additional                the institution believes it does not have             changes to those requirements. The ESI
                                                loan counseling, or to the control group,               the capacity to include all of those                  does not provide broad regulatory relief
                                                for which the institution may not                       borrowers in the experiment, an                       or general exceptions to the
                                                require any additional loan counseling.                 estimate of the number of borrowers it                Department’s statutory and regulatory
                                                   Once a borrower is placed into the                   wishes to include in the experiment                   requirements.
                                                treatment or control group, the borrower                (both in the control and treatment                       If a selected institution consists of
                                                must remain in that group throughout                    groups) for each award year; (2) how the              more than one location (e.g., campus),
                                                the borrower’s enrollment at the                        additional counseling will be provided,               the Secretary may limit the experiment
                                                institution during the institution’s                    e.g., through the Department’s FACT                   to a single location, unless the
                                                participation in the experiment.                        product, a third-party counseling                     institution provides the Secretary with a
                                                   To obtain some key outcome                           product or a third-party servicer, or an              rationale for expanding the experiment
                                                measures (e.g., receipt and amount of                   institutionally developed alternative; (3)            to one or more of the institution’s other
                                                loan funds, academic progression,                       a brief description of the additional                 locations.
                                                completion or withdrawal), the                          counseling that the institution proposes                 The Secretary will consult with those
                                                Department will draw on information                     to use in the experiment, including its               institutions that have been invited to
                                                contained in the Department’s systems.                  content and mode of delivery; and (4)                 participate in the experiment on the
                                                   In addition, each institution will be                how the institution’s proposed approach               final design of the experiment through
                                                required to provide to the Department                   to additional loan counseling is                      Webinars or other outreach activities.
                                                existing school records for all students                supported by relevant and available                      Institutions selected for participation
                                                participating in the experiment                         research or evidence (if applicable) and              in an experiment will have their
                                                (whether assigned to the treatment or                   the source of such research or evidence.              Program Participation Agreement (PPA)
                                                control group) for the purpose of                         We understand that the actual number                with the Secretary amended to reflect
                                                assessing the impacts of the additional                                                                       the specific statutory or regulatory
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                                                                                                        of students who will be included in the
                                                loan counseling intervention. The                       experiment may be different than the                  provisions that the Secretary has waived
                                                records will likely include the                         estimate provided in the Letter of                    for participants in the experiment at the
                                                borrower’s academic information (e.g.,                  Interest, as may the proposed                         institution. The institution must
                                                credits taken, credits earned, grade                    counseling method.                                    acknowledge its commitment to
                                                point average, completion information,                    From the institutions that apply, the               adequately establish the procedures
                                                and credentials earned) as well as                      Secretary will select a limited number                necessary to successfully administer the
                                                financial information (e.g., cost of                    that represent a diverse cross-section of             experiment. The amended PPA will also


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                                                54056                        Federal Register / Vol. 81, No. 157 / Monday, August 15, 2016 / Notices

                                                document the agreement between the                        Deadline for Transmittal of                            individuals between the ages of 14 and
                                                Secretary and the institution about how                 Applications: October 31, 2016.                          24 (who are low-income and either
                                                the experiment will be conducted and                      Deadline for Intergovernmental                         homeless, in foster care, involved in the
                                                will specify the evaluation and                         Review: December 28, 2016.                               juvenile justice system, unemployed, or
                                                reporting requirements for the                          Full Text of Announcement                                not enrolled in or at risk of dropping out
                                                experiment.                                                                                                      of an educational institution) achieve
                                                   Accessible Format: Individuals with                  I. Funding Opportunity Description                       success in meeting educational,
                                                disabilities can obtain this document in                   Purpose of Program: Performance                       employment, or other key goals.’’
                                                an accessible format (e.g., braille, large              Partnership Pilots (P3), first authorized                   Government and community partners
                                                print, audiotape, or compact disc) on                   by Congress for FY 2014 by the                           have invested considerable attention
                                                request to the contact person listed                    Consolidated Appropriations Act, 2014                    and resources to meet the needs of
                                                under FOR FURTHER INFORMATION                           (2014 Appropriations Act) and                            disconnected youth. However,
                                                CONTACT.                                                reauthorized for FY 2015 by the                          practitioners, youth advocates, and
                                                   Electronic Access to This Document:                  Consolidated and Further Continuing                      others on the front lines of service
                                                The official version of this document is                Appropriations Act, 2015 (2015                           delivery have observed that flexibility
                                                the document published in the Federal                   Appropriations Act) and for FY 2016 by                   can be a key tool to address certain
                                                Register. Free Internet access to the                   the Consolidated Appropriations Act,                     programmatic and administrative
                                                official edition of the Federal Register                2016 (2016 Appropriations Act)                           obstacles to achieving meaningful
                                                and the Code of Federal Regulations is                  (together, the Acts), enable pilot sites to              improvements in education,
                                                available via the Federal Digital System                test innovative, outcome-focused                         employment, health, and well-being for
                                                at: www.gpo.gov/fdsys. At this site you                 strategies to achieve significant                        these young people.
                                                can view this document, as well as all                  improvements in educational,                                P3 tests the hypothesis that additional
                                                other documents of this Department                      employment, and other key outcomes                       flexibility for States, local governments,
                                                published in the Federal Register, in                   for disconnected youth using new                         and tribes, in the form of blending funds
                                                text or PDF. To use PDF, you must have                  flexibility to blend existing Federal                    and waivers of certain programmatic
                                                Adobe Acrobat Reader, which is                          funds and to seek waivers of associated                  requirements, can help overcome some
                                                available free at the site.                             program requirements.                                    of the significant hurdles that States,
                                                   You may also access documents of the                    Background: The Acts authorize the                    local governments, and tribes face in
                                                Department published in the Federal                     Departments of Education (ED or the                      providing intensive, comprehensive,
                                                Register by using the article search                    Department), Labor (DOL), Health and                     and sustained service pathways and
                                                feature at: www.federalregister.gov.                    Human Services (HHS), Housing and                        improving outcomes for disconnected
                                                Specifically, through the advanced                      Urban Development (HUD),1 and Justice                    youth. For example, P3 can be used to
                                                search feature at this site, you can limit              (DOJ),2 the Corporation for National and                 better coordinate and align the multiple
                                                your search to documents published by                   Community Service (CNCS), and the                        systems that serve youth. P3 may help
                                                the Department.                                         Institute of Museum and Library                          address the ‘‘wrong pockets’’ problem,
                                                   Program Authority: 20 U.S.C. 1094a(b).               Services (IMLS) (collectively, the                       where entities that observe improved
                                                                                                        Agencies), to enter into Performance                     outcomes or other benefits due to an
                                                  Dated: August 9, 2016.                                                                                         intervention are unable to use Federal
                                                                                                        Partnership Agreements (performance
                                                Lynn Mahaffie,                                                                                                   funds to support that intervention due
                                                                                                        agreements) with State, local, or tribal
                                                Deputy Assistant Secretary for Policy,                  governments to provide additional                        to program restrictions. P3 flexibility
                                                Planning and Innovation, Delegated the                                                                           may also allow the testing of an
                                                                                                        flexibility in using certain of the
                                                Duties of Assistant Secretary for                                                                                innovative approach to help build
                                                Postsecondary Education.                                Agencies’ discretionary funds,3
                                                                                                        including competitive and formula grant                  additional evidence about what works.
                                                [FR Doc. 2016–19297 Filed 8–12–16; 8:45 am]                                                                      If this hypothesis proves true, providing
                                                                                                        funds, across multiple Federal
                                                BILLING CODE 4000–01–P
                                                                                                        programs. Entities that seek to                          necessary and targeted flexibility to
                                                                                                        participate in these pilots will be                      remove or overcome these hurdles will
                                                                                                        required to commit to achieving                          help to achieve significant benefits for
                                                DEPARTMENT OF EDUCATION                                                                                          disconnected youth, the communities
                                                                                                        significant improvements in outcomes
                                                Applications for New Awards;                            for disconnected youth in exchange for                   that serve them, and the involved
                                                Performance Partnership Pilots                          this new flexibility. The authorizing                    agencies and partners.
                                                                                                        statute states that ‘‘ ‘[t]o improve                        The statutory definition of
                                                AGENCY: Office of Career, Technical, and                outcomes for disconnected youth’                         ‘‘disconnected youth’’ specifically
                                                Adult Education, Department of                          means to increase the rate at which                      identifies several high-need
                                                Education.                                                                                                       subpopulations of low-income youth,
                                                ACTION: Notice.                                            1 The 2016 Appropriations Act authorizes HUD to       including youth who are homeless,
                                                                                                        enter into performance agreements with respect to        youth in foster care, youth involved in
                                                  Overview Information:                                 FY 2016 Homeless Assistance Grants.                      the juvenile justice system, and youth
                                                  Performance Partnership Pilots                           2 DOJ’s Office of Justice Programs was first
                                                                                                                                                                 who are unemployed or not in school or
                                                  Notice inviting applications for new                  authorized to enter into performance agreements by
                                                                                                        the 2015 Appropriations Act.                             at risk of dropping out. We wish to note
                                                awards for fiscal year (FY) 2016.                          3 Discretionary funds are funds that Congress         that there are a number of other high-
                                                Catalog of Federal Domestic Assistance                  appropriates on an annual basis, rather than             need subpopulations of disconnected
                                                (CFDA) Number: 84.420A.                                 through a standing authorization. They exclude           youth who are not specifically
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                                                                                                        ‘‘entitlement’’ (or mandatory) programs such as
                                                  Dates:                                                Social Security, Medicare, Medicaid, most Foster
                                                                                                                                                                 enumerated in statute but are also at risk
                                                  Applications Available: August 15,                    Care IV–E programs, Vocational Rehabilitation State      of dropping out. For example, English
                                                2016.                                                   Grants, and Temporary Assistance to Needy                learners (ELs) are at great risk of
                                                  Deadline for Notice of Intent to Apply:               Families (TANF). Discretionary programs                  dropping out; the average cohort
                                                September 29, 2016.                                     administered by the Agencies support a broad set
                                                                                                        of public services, including education, job training,
                                                                                                                                                                 graduation rate for ELs during the 2013–
                                                  Note: Submission of a notice of intent to             health and mental health, and other low-income           14 school year was only 62.6 percent,
                                                apply is optional.                                      assistance programs.                                     while the national average cohort


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Document Created: 2016-08-13 02:22:44
Document Modified: 2016-08-13 02:22:44
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
ActionNotice.
DatesLetters of Interest to participate in the experiment described in this notice must be received by the Department no later than September 29, 2016 to ensure that the Department considers the institution for participation in the experiment. Letters received after September 29, 2016 may, at the discretion of the Secretary, be considered for participation.
ContactWarren Farr, U.S. Department of Education, Federal Student Aid, 830 First Street NE., Washington, DC 20002. Telephone: (202) 377-4380 or by email at: [email protected]
FR Citation81 FR 54052 

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