{"content":[{"text":"UNITED STATES DEPARTMENT OF EDUCATION \n WASHINGTON, D.C. 20202","bbox":{"left":0.146242,"top":0.07022,"width":0.435686,"height":0.037256999999999985}},{"text":"_______________________________________________","bbox":{"left":0.026144,"top":0.136508,"width":0.460784,"height":0.020212000000000008}},{"text":"In the Matter of","bbox":{"left":0.026144,"top":0.168705,"width":0.12360700000000002,"height":0.020212000000000008}},{"text":"Docket No. 98-97-ST","bbox":{"left":0.124183,"top":0.201038,"width":0.173726,"height":0.020985000000000004}},{"text":"WESTCHESTER SCHOOL OF BEAUTY CULTURE,","bbox":{"left":0.026144,"top":0.25028,"width":0.463588,"height":0.020984999999999976}},{"text":"Student Financial Assistance Proceeding","bbox":{"left":0.124183,"top":0.282341,"width":0.31968700000000005,"height":0.020212000000000008}},{"text":"Respondent. \n ________________________________________________","bbox":{"left":0.026144,"top":0.314538,"width":0.470588,"height":0.03725700000000004}},{"text":"Appearances:","bbox":{"left":0.026144,"top":0.36378,"width":0.106706,"height":0.020212000000000008}},{"text":"Paul G. Freeborne, Esq., Office of the General Counsel, U.S. Department of Education, Washington, D.C., for \n Student Financial Assistance Programs.","bbox":{"left":0.075163,"top":0.395977,"width":0.865315,"height":0.03725799999999996}},{"text":"Ronald L. Holt, Esq., Watkins, Boulware, Lucas, Miner, Murphy & Taylor, LLP, Kansas City, Missouri, for \n Westchester School of Beauty Culture.","bbox":{"left":0.075163,"top":0.447114,"width":0.850158,"height":0.037256999999999985}},{"text":"Before:","bbox":{"left":0.026144,"top":0.513402,"width":0.058803999999999995,"height":0.020212000000000008}},{"text":"Frank K. Krueger, Jr., Administrative Judge.","bbox":{"left":0.109458,"top":0.513402,"width":0.350705,"height":0.020212000000000008}},{"text":"DECISION","bbox":{"left":0.45132,"top":0.545735,"width":0.09696100000000002,"height":0.02098500000000003}},{"text":"Respondent participates in the Pell Grant and Federal Family Education Loan (FFEL) programs authorized under \n Title IV of the Higher Education Act of 1965, as amended. On January 8, 1998, SFAP notified Respondent that its \n FFEL cohort default rate for fiscal year (FY) 1994 was 43.8 percent. As a result of Respondent's appeal under the \n procedures provided under 34 C.F.R. § 668.17(h) (1997), Respondent's final rate was reduced to 42.7 percent. On June \n 30, 1998, SFAP notified Respondent of its intent to terminate Respondent's participation in all programs authorized \n under Title IV. Respondent filed a timely request for a hearing under 34 C.F.R. Part 668, Subpart G to challenge the \n proposed termination.","bbox":{"left":0.026144,"top":0.611886,"width":0.93249,"height":0.12248499999999996}},{"text":"Under 34 C.F.R. § 668.90(a)(3)(iv) (1997), since Respondent's FY 1994 FFEL cohort default rate is above 40 percent, \n and it is a “final” rate arrived at by SFAP under 34 C.F.R. \n § 668.17 (1997), I must find that the “remedy” proposed by SFAP -- termination -- is warranted. See Aladdin Beauty \n College # 32, Docket No. 97-108-ST, U.S. Dept. of Educ. (Order of the Secretary, Aug. 20, 1998). Respondent argues \n that its FY 1994 FFEL cohort default rate cannot be considered “final” since SFAP failed to apply the correct legal \n standards and failed to exclude certain data from its calculations. This argument was raised and rejected in Hair Design \n Institute, Docket No 97-122-ST, U.S. Dept. of Educ. (August 5, 1998). As I stated in Hair Design, to adopt \n Respondent's argument would eviscerate the meaning of section 668.90(a)(3)(iv) and place the hearing official in the \n middle of Respondent's challenge to the SFAP computation of its FFEL cohort default rate. It is precisely the purpose of \n section 668.90(a)(3)(iv) to ensure that the hearing official not become involved in such disputes. Respondent argues that \n a recent decision by this tribunal, International Junior College, Docket No. 97-164-ST, U.S. Dept. of Educ. (July 28, \n 1998), illustrates that it is appropriate for the hearing official to consider such disputes. In International, the school","bbox":{"left":0.026144,"top":0.746356,"width":0.9472940000000001,"height":0.207712}}],"images_bbox":[],"images_bbox_not_text_overlap":[]}