83 FR 61121 - Waiver of Certain Consumer Information Requirements for Foreign Institutions of Higher Education

DEPARTMENT OF EDUCATION

Federal Register Volume 83, Issue 229 (November 28, 2018)

The Secretary identifies specific provisions governing the student loan programs authorized by title IV of the Higher Education Act of 1965, as amended (HEA), that do not apply to foreign institutions.

[Federal Register Volume 83, Number 229 (Wednesday, November 28, 2018)]
[Rules and Regulations]
[Pages 61121-61125]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-25929]


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DEPARTMENT OF EDUCATION

34 CFR Parts 86 and 668


Waiver of Certain Consumer Information Requirements for Foreign 
Institutions of Higher Education

AGENCY: Office of Postsecondary Education, Department of Education.

ACTION: Waiver.

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SUMMARY: The Secretary identifies specific provisions governing the 
student loan programs authorized by title IV of the Higher Education 
Act of 1965, as amended (HEA), that do not apply to foreign 
institutions.

DATES: November 28, 2018.

FOR FURTHER INFORMATION CONTACT: Ashley Higgins, U.S. Department of 
Education, 400 Maryland Avenue SW, Room 294-20, Washington, DC 20202. 
Telephone: (202) 453-6097. Email: [email protected].

SUPPLEMENTARY INFORMATION: The Department of Education's (Department) 
regulations governing the eligibility of foreign institutions to 
participate in the title IV, HEA student loan programs provide that, 
``[a] foreign institution must comply with all requirements for 
eligible and participating institutions except when made inapplicable 
by the HEA or when the Secretary, through publication in the Federal 
Register, identifies specific provisions as inapplicable to foreign 
institutions.'' 34 CFR 600.51(c)(1). In this document, we identify 
specific provisions that do not

[[Page 61122]]

apply to foreign institutions of higher education.

I. Regulatory Consumer Information Requirements Inapplicable to Foreign 
Institutions of Higher Education

Transfer of Credit Policies and Articulation Agreements (34 CFR 
668.43(a)(11))

    Requirement: Each institution must disclose and make available to 
prospective and enrolled students a statement of the school's transfer 
of credit policies that includes, at a minimum--
     Any established criteria the school uses regarding the 
transfer of credit earned at another school; and
     A list of schools with which the school has established an 
articulation agreement.
    Reason: The Secretary believes this requirement is inapplicable to 
foreign institutions because American students attending a foreign 
institution are unlikely to need this information. Transfer of credit 
rules at foreign institutions generally apply to credits earned at 
institutions in the institution's home country and are of limited use 
to American students seeking to transfer credits earned at U.S. 
institutions.

Copyright Infringement Policies and Sanctions, Including Computer Use 
and File Sharing (34 CFR 668.43(a)(10))

    Requirement: Institutions must readily make available to current 
and prospective students the institution's policies and sanctions 
related to copyright infringement, including--
     A statement that explicitly informs students that 
unauthorized distribution of copyrighted material, including 
unauthorized peer-to-peer file sharing, may subject them to civil and 
criminal liabilities;
     A summary of the penalties for violation of Federal 
copyright laws; and
     The institution's policies with respect to unauthorized 
peer-to-peer file sharing, including disciplinary actions taken against 
students who engage in illegal downloading or unauthorized distribution 
of copyrighted materials using the institution's information technology 
system.
    Reason: U.S. copyright laws do not apply in foreign countries and 
the rules and penalties mentioned in this provision would not apply to 
U.S. students while attending a foreign institution. Therefore, the 
Secretary believes that it is unnecessary for foreign institutions to 
disclose rules and policies that are not applicable to the institution 
and its students and that may be incompatible with the laws of the 
country in which the institution is located.

School and Program Accreditation, Approval, or Licensure (34 CFR 
668.43(a)(6))

    Requirement: Each institution must make available to prospective 
and enrolled students--
     Names of associations, agencies, or governmental bodies 
that accredit, approve, or license the institution and its programs; 
and
     Procedures for obtaining or reviewing documents describing 
accreditation, approval, or licensing.
    Reason: Unlike domestic institutions, foreign institutions do not 
need to be accredited by a body recognized by the Secretary to 
participate in the title IV, HEA programs. In addition, the 
requirements for licensing institutions vary by country. Although the 
foreign institution must have approval of the government of the country 
in which the institution is located to operate in order to participate 
in the title IV, HEA programs, the Secretary does not believe 
accreditation and licensure information, as described for U.S. 
Institutions will be available at all foreign institutions.

Drug and Alcohol Abuse Prevention Program (34 CFR 86.100 and 86.103; 20 
U.S.C. 1011i)

    Requirement: Each institution must annually distribute in writing 
to each student and employee--
     Standards of conduct that clearly prohibit the unlawful 
possession, use, or distribution of illicit drugs and alcohol by 
students and employees on the institution's property or as part of any 
of the institution's activities;
     A description of the applicable legal sanctions under 
local, State, or Federal law for the unlawful possession or 
distribution of illicit drugs and alcohol;
     A description of the health risks associated with the use 
of illicit drugs and the abuse of alcohol;
     A description of available counseling, treatment, 
rehabilitation, or re-entry programs; and
     A clear statement that the institution will impose 
disciplinary sanctions for violation of the standards of conduct and a 
description of those sanctions.
    In addition, each institution must make available, upon request, to 
the Department and to the public, the information distributed to 
students and employees and the results of a biennial review of the 
institution's program to--
     Determine the effectiveness of the program and implement 
needed changes;
     Determine the number of drug and alcohol-related 
violations and fatalities that occur on the institution's campus or as 
part of the institution's activities, and are reported to campus 
officials;
     Determine the number and type of sanctions that are 
imposed by the institution; and
     Ensure that sanctions are consistently enforced.
    Reason: U.S. drug laws do not apply in foreign countries and the 
rules and penalties mentioned in this provision would not apply to U.S. 
students while they are attending a foreign institution. Therefore, the 
Secretary believes that it is unnecessary for foreign institutions to 
disclose rules and policies that are not applicable to the institution 
and its students and that may be incompatible with the laws of the 
country in which the institution is located.

Completion/Graduation and Transfer-Out Rates for Students Receiving 
Athletically Related Student Aid (34 CFR 668.41(f) and 668.48)

    Requirement: Each institution must produce by July 1 each year a 
report that will be provided to a prospective student athlete and the 
student's parents, high school guidance counselor, and coach at the 
time the institution offers athletically related student aid.
    Reason: The college athletics structure in the United States is 
unique. As a rule, foreign institutions do not have competitive 
intercollegiate sports programs for which they offer full or partial 
athletic scholarships. In those countries where athletic scholarships 
are available, they exist on a far more limited scale than is the case 
in the United States. Because of this, the Secretary believes that it 
is unreasonable to hold foreign institutions to the same standards as 
American institutions given the differences between our systems.

Intercollegiate Athletic Program Participation Rates and Financial 
Support (Equity in Athletics Disclosure Act) (34 CFR 668.41(g) and 
668.47(c))

    Requirement: The Equity in Athletics Disclosure Act (EADA) is 
intended to provide prospective students information about an 
institution's efforts to provide equitable athletic opportunities for 
its men and women students. Any coeducational institution of higher 
education that participates in a title IV, HEA program and has an 
intercollegiate athletic program must prepare an annual EADA report. 
The report includes participation rates, financial support, and other 
information on men's and women's intercollegiate athletic programs. 
Institutions must also

[[Page 61123]]

submit their EADA report to the Department.
    Reason: The college athletics structure in the United States is 
unique. Foreign institutions do not generally have significant numbers 
of U.S. students participating in competitive intercollegiate sports 
programs for whom this information would be relevant. Moreover, we are 
not aware of other countries that require compilation of this or 
similar information for disclosure to students. Because of this, the 
Secretary believes that it is unreasonable to hold foreign institutions 
to the same standards as American institutions given the differences 
between our systems.

Completion/Graduation and Transfer-Out Rates (Including Disaggregated 
Completion/Graduation Rates) (34 CFR 668.41(d) and 668.45)

    Requirement: Each institution must annually make available to 
prospective and enrolled students the completion or graduation rate of 
certificate- or degree-seeking, first-time, full-time, undergraduate 
students. The data are to be available by July 1 each year for the most 
recent cohort that has had 150 percent of normal time for completion by 
August 31 of the prior year.
    If the information is requested by a prospective student, it must 
be made available prior to the student's enrolling or entering into any 
financial obligation with the institution. The disaggregated rates have 
to be disclosed only if the number of students in each group is 
sufficient to yield statistically reliable information and not reveal 
personally identifiable information about an individual student.
    Reason: The Secretary is aware that the laws of other countries may 
not allow for data to be disaggregated in the way required by these 
regulations. This situation could make the disclosure both inconsistent 
with the laws of those countries and unhelpful for American students.

Placement in Employment (34 CFR 668.41(d))

    Requirement: Institutions must make available to current and 
prospective students information regarding the placement in employment 
of, and types of employment obtained by, graduates of the institution's 
degree or certificate programs. Under this provision, institutions are 
not required to calculate placement rates, but an institution must 
disclose any placement rates it calculates for the school or any 
program.
    Reason: This information is not likely to be helpful to American 
students studying in foreign institutions, most of whom eventually 
return to the United States, because it would be based on the placement 
of students from the institution who work in the institution's host 
country where conditions for employment may be different.

Job Placement Rates (34 CFR 668.14(b)(10))

    Requirement: An institution that advertises job placement rates as 
a means of recruiting students to enroll must make available to 
prospective students, at or before the time the prospective student 
applies for enrollment--
     The most recent available data concerning employment 
statistics and graduation statistics;
     Any other information necessary to substantiate the 
truthfulness of the advertisements; and
     Relevant State licensing requirements of the State in 
which the institution is located for any job for which the course of 
instruction is designed to prepare students.
    Reason: Because American students studying in foreign schools may 
eventually return to the United States and may not be permitted to work 
in a foreign country, this information is not likely to be helpful to 
those students since most of the students in the school are likely to 
work in the host country where conditions for employment may be 
different. In addition, the Secretary believes that it is unreasonable 
to require foreign institutions to track international placements. 
Moreover, foreign institutions of higher education are not located in a 
State for which they could provide information on licensing 
requirements.

Types of Graduate and Professional Education in Which the Institution's 
Graduates Enroll (34 CFR 668.41(d)(6))

    Requirement: Institutions must make available to current and 
prospective students information regarding the types of graduate and 
professional education in which graduates of the institution's four-
year degree programs enroll. Institutions must identify the source of 
the information, and any timeframes and methodology associated with it.
    Reason: This information is not likely to be helpful to American 
students studying in foreign institutions, most of whom eventually 
return to the United States, because most of the students included in 
the institution's report would be likely to pursue graduate school in 
the institution's host country where conditions may be different.

Retention Rate (34 CFR 668.41(d)(3))

    Requirement: Institutions must make available to current and 
prospective students the retention rate of certificate or degree 
seeking, first-time, undergraduate students as reported to the 
Integrated Postsecondary Education Data System (IPEDS).
    Reason: This requirement specifically refers to the retention rate 
reported to IPEDS. Foreign institutions do not submit information to 
IPEDS and are not otherwise required to calculate or disclose a 
retention rate.

Security Report--Missing Person Notification Policy (34 CFR 
668.46(b)(14) and 668.46(h))

    Requirement: An institution that provides any on-campus student 
housing facility must include in its annual security report a statement 
of policy regarding missing student notification procedures for 
students who reside in on-campus housing.
    Reason: This requirement is implemented and administered in 
connection with the Clery Act, from which Congress specifically 
exempted foreign institutions. As a result, the Secretary believes 
requiring foreign institutions to comply with this requirement is 
inappropriate.

Fire Safety Report (34 CFR 668.41(e) and 668.49)

    Requirement: By October 1 of each year, an institution that 
maintains any on-campus student housing facility must distribute an 
annual fire safety report, or provide a notice of the report, to all 
enrolled students and current employees.
    Reason: This provision is implemented and administered in 
connection with the Clery Act, from which Congress specifically 
exempted foreign institutions. As a result, the Secretary believes 
requiring foreign institutions to comply with this requirement is 
inappropriate.

Fire Log (34 CFR 668.49(d))

    Requirement: An institution that maintains on-campus student 
housing facilities must maintain a written, easily understood fire log 
that records, by the date that the fire was reported, any fire that 
occurred in an on-campus student housing facility. This log must 
include the nature, date, time, and general location of each fire.
    Reason: This requirement is implemented and administered in 
connection with the Clery Act, from which Congress specifically 
exempted foreign institutions. As a result, the Secretary believes 
requiring foreign

[[Page 61124]]

institutions to comply with this requirement is inappropriate.

State Grant Assistance (34 CFR 668.14(b)(11))

    Requirement: Institutions must inform all eligible borrowers 
enrolled in the institution about the availability of and their 
eligibility for grant assistance from the State in which the 
institution is located, and provide sources of information about grant 
assistance from other States to borrowers from other States.
    Reason: This requirement is inapplicable to foreign institutions 
because this requirement applied exclusively to student borrowers with 
Federal Family Education Loan (FFEL) program loans. No new FFEL loans 
have been made since July 1, 2010, and it is highly unlikely that 
current students at foreign institutions have FFEL loans.

II. Non-Regulatory Consumer Information Requirements Inapplicable to 
Foreign Institutions of Higher Education

Notice of Federal Student Financial Aid Penalties for Drug Law 
Violations (20 U.S.C. 1092(k))

    Requirement: Each institution must provide to every student upon 
enrollment a separate, clear, and conspicuous written notice with 
information on the penalties associated with drug-related offenses 
under section 484(r) of the HEA. Institutions must also timely notify 
each student who has lost eligibility for any grant, loan, or work-
study assistance as a result of penalties under section 484(r)(1) of 
the HEA of the loss of eligibility and the ways in which to regain 
eligibility under section 484(r)(2) of the HEA.
    Reason: U.S. drug laws do not apply in foreign countries and the 
rules and penalties mentioned in this provision would not apply to U.S. 
students while they are attending a foreign institution. Therefore, the 
Secretary believes that it is unnecessary for foreign institutions to 
disclose rules and policies that are not applicable to the institution 
and its students and that may be incompatible with the laws of the 
country in which the institution is located.

Vaccinations Policy (20 U.S.C. 1092(a)(1))

    Requirement: Institutions must make available to current and 
prospective students information about institutional policies regarding 
vaccinations.
    Reason: These requirements were created to address specific public 
health issues in the United States. Any U.S. students seeking to study 
at a foreign institution must comply with requirements for entry into 
the institution's home country, including those related to 
vaccinations. As a result, the Secretary believes that it is 
inappropriate to apply vaccination requirements in the HEA to foreign 
institutions.

Student Body Diversity (20 U.S.C. 1092(a)(1)(Q))

    Requirement: Institutions must make available to current and 
prospective students information about student body diversity, 
including the percentage of enrolled, full-time students in the 
following categories:
     Male.
     Female.
     Self-identified members of a major racial or ethnic group.
     Federal Pell Grant recipients.
    Reason: Foreign institutions are not eligible to participate in the 
Pell Grant Program. Further, the racial and ethnic groups used for this 
disclosure are defined in IPEDS, a system that foreign institutions do 
not use, and other countries may have different definitions and 
reporting laws regarding gender, racial, and ethnic groups. For these 
reasons, the Secretary believes it is impractical for foreign 
institutions to comply with this requirement.

Textbook Information (20 U.S.C. 1015b)

    Requirement: To the maximum extent practicable, and in a manner of 
the institution's choosing, each institution must disclose on its 
internet course schedule used for preregistration and registration 
purposes, the International Standard Book Number (ISBN) and retail 
price information of required and recommended textbooks and 
supplemental materials for each course listed. If the ISBN is not 
available, the institution must include in the internet course schedule 
the author, title, publisher, and copyright date for the textbook or 
supplemental material.
    If a college bookstore is operated by or affiliated with the 
institution, the institution must make available as soon as practicable 
the most accurate information available regarding--
     The institution's course schedule for the subsequent 
academic period;
     The information provided for students regarding the 
required and recommended textbooks and supplemental materials for each 
course or class; and
     The number of students enrolled in each course or class 
and the maximum student enrollment for each course or class.
    Reason: The textbook requirements were created to address concerns 
specific to the United States involving the price of textbooks. These 
concerns are less apparent at foreign institutions. English language 
programs offered by foreign institutions generally use the 
international editions of texts, which are usually available for 
purchase at prices far below those of American editions.\1\ 
Accordingly, the Secretary is exempting foreign institutions from these 
requirements.
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    \1\ Lewin, Tamar. (2003, October 21). Students Find $100 
Textbooks Cost $50, Purchased Overseas. The New York Times, 
Retrieved from https://www.nytimes.com/2003/10/21/us/students-find-100-textbooks-cost-50-purchased-overseas.html.
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Accountability for Programs That Prepare Teachers (20 U.S.C. 1022d-
1022g)

    Requirement: Each institution that provides a teacher preparation 
program and admits students receiving Federal student financial aid 
must provide a report annually to the State and to the general public. 
The States must submit to the Department, and make available to the 
public, an annual report containing institutional and State-level 
information. The Department makes the State reports available to the 
public.
    Reason: Foreign institutions are not located in a State and are not 
required to prepare or submit this report.

Voter Registration Forms (20 U.S.C. 1094(a)(23))

    Requirement: Each institution must--
     Make a good faith effort to distribute a mail voter 
registration form to each student enrolled in a degree or certificate 
program and physically in attendance at the institution;
     Make the voter registration form widely available to 
students; and
     Request the forms from the State 120 days prior to the 
deadline for registering to vote within the State.
    Reason: Because foreign institutions are not in a State, this 
requirement does not apply.

Constitution Day (36 U.S.C. 106)

    Requirement: Constitution Day is September 17 of each year, 
commemorating the September 17, 1787 signing of the U.S. Constitution. 
Institutions that receive Federal funds are required to hold an 
appropriate educational program about the Constitution for their 
students.
    Reason: The Secretary believes that it is inappropriate to require 
institutions located outside the U.S. to conduct an educational program 
on another nation's Constitution.
    Accessible Format: Individuals with disabilities can obtain this 
document in an accessible format (e.g., braille, large

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print, audiotape or compact disc) on request to the program contact 
person listed under FOR FURTHER INFORMATION CONTACT.
    If you use a telecommunications device for the deaf or a text 
telephone, call the Federal Relay Service, toll free, at 1-800-877-
8339.
    Electronic Access to This Document: The official version of this 
document is the document published in the Federal Register. You may 
access the official edition of the Federal Register and the Code of 
Federal Regulations 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 Portable Document Format (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.

    Dated: November 23, 2018.
Betsy DeVos,
Secretary of Education.
[FR Doc. 2018-25929 Filed 11-23-18; 4:15 pm]
 BILLING CODE 4000-01-P