Gaina Letter to Extend Comment Period for Campus Bank Accounts May 2015

Dear Ms. Gaina:

On May 18, 2015, the Department of Education (DOE) published in the Federal Register aNotice of Proposed Rulemaking (NPRM) with respect to the cash management regulations issuedunder the Higher Education Act of 1965, as amended. The proposed rule addresses, among otherthings, student access to title IV, HEA program funds.

The American Bankers Association (ABA), the Consumer Bankers Association (CBA), the Electronic Transactions Association (ETA), the Financial Services Roundtable (FSR) and the Credit Union National Association (CUNA) look forward to commenting on the NPRM. However, we believe that the proposed comment deadline of 45 days is insufficient to enable stakeholders to research and respond to a matter of this complexity and importance. We respectfully request an additional 45 days, for a total of 90 days, to respond.

As noted in the NPRM, DOE considered various draft proposals as part of a NegotiatedRulemaking 2013-2014 for Program Integrity and Improvement. However, the current NPRMreflects significant differences from the draft proposals considered during the negotiatedrulemaking. To ensure thoughtful and constructive comments, the schools and financial institutionsthat will be effected by the rulemaking require time to coordinate and review both the previouslyconsidered and new proposals. In addition, the proposal presents questions regarding the technicalmechanics of compliance that must be considered. The 45-day comment period, which is alreadyshort, will be further limited by the two holidays that fall on either end of the comment period,Memorial Day and Independence Day. Many individuals from our membership upon whom we depend for feedback may have preexisting travel plans over these holidays.

Further complicating the review and comment process is the fact that some of the proposeddisclosures have not been published with the proposal. Specifically, the proposal describesdisclosures using “format and content requirements [to be] specified by the Secretary in a noticepublished in the Federal Register following consultation with the CFPB.” However, thesedisclosures are not expected to be finalized until after publication of the final regulations, requiringcommenters to speculate about the ultimate content and format of those disclosures.

Moreover, the 45-day comment period is inconsistent with Executive Order 13563, in whichthe Administration requests that agencies provide comment periods of “at least 60 days.” Webelieve for the reasons presented here – the breadth and scope of the request and the importanceof this subject – more than the 45 days provided is warranted. We respectfully request an extensionof at least 45 additional days, for a 90 day comment period.

Sincerely,

Nessa Feddis
Senior Vice President & Deputy Chief Counsel
American Bankers Association

David Pommerehn
Vice President and Senior Counsel
Consumers Bankers Association

Scott Talbott
Senior Vice President, Government Relations
Electronic Transactions Association

Luke Martone
Senior Director of Advocacy & Counsel
Credit Union National Association

Rich Foster
Senior Vice President and Senior Counsel
Financial Services Roundtable

CC: Ashley Higgins
U.S. Department of Education
[email protected]