The Department of Education (the
Department) amends the Federal Family Education Loan (FFEL) Program
regulations issued under the Higher Education Act of 1965, as
amended (HEA), to implement changes made to Part 682 Subpart B –
General Provisions for §682.211 – Forbearance and Subpart D –
Administration of the Federal Family Education Loan Programs by a
Guaranty Agency for §682.402. These final regulations are a result
of negotiated rulemaking and will add new requirements to the
current regulations. The regulations in §682.211 will require a
lender to grant a mandatory administrative forbearance to a
borrower upon being notified by the Secretary that the borrower has
submitted an application for a borrower defense discharge related
to a FFEL Loan that the borrower intends to pay off through a
Direct Loan Program Consolidation Loan for the purpose of obtaining
relief, as reflected in §685.212(k). The administrative forbearance
will be granted in yearly increments of for a period designated by
the Secretary until the Secretary notifies the lender that the loan
has been consolidated or that the forbearance should be
discontinued. The regulations in §682.402(d)(6)(ii)(F) requires a
guaranty agency that denies a closed school discharge request to
inform the borrower of the opportunity for a review of the guaranty
agency’s decision by the Secretary, and explain how the borrower
may request such a review. The regulations in
§682.402(d)(6)(ii)(I), requires the guaranty agency or the
Department, upon resuming collection, to provide a Perkins, FFEL,
or Direct Loan borrower with another closed school discharge
application, and an explanation of the requirements and procedures
for obtaining the discharge. The regulations in
§682.402(d)(6)(ii)(K) describes the responsibilities of the
guaranty agency and the Secretary if the borrower requests such a
review. The regulations in §682.402(d)(8)(iii) authorizes the a
guaranty agency with the Department’s permission, to grant a closed
school discharge to an FFEL borrower without a borrower application
based on information in the Department’s or guaranty agency’s
possession that the borrower did not subsequently re-enroll in any
title IV-eligible institution within a period of three years after
the school closed.
US Code:
20 USC 1071- 1084-4 Name of Law: Higher Education Act of 1965,
as amended
This request is to revise the
currently approved information collection. These changes are due to
the regulations offered through agency estimate. The increase in
burden to this information collection is 7,622 hours. These changes
to the regulations are a result of negotiated rulemaking.
$0
No
No
No
No
No
Uncollected
Ian Foss 202 377-3681
No
On behalf of this Federal agency, I certify that
the collection of information encompassed by this request complies
with 5 CFR 1320.9 and the related provisions of 5 CFR
1320.8(b)(3).
The following is a summary of the topics, regarding
the proposed collection of information, that the certification
covers:
(i) Why the information is being collected;
(ii) Use of information;
(iii) Burden estimate;
(iv) Nature of response (voluntary, required for a
benefit, or mandatory);
(v) Nature and extent of confidentiality; and
(vi) Need to display currently valid OMB control
number;
If you are unable to certify compliance with any of
these provisions, identify the item by leaving the box unchecked
and explain the reason in the Supporting Statement.
1845-0020 Supporting Statement BD FINAL.docx
Federal Family Education Loan Program -- state, local, or tribal gov't