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.
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.
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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.
Federal Family Education Loan Program -- state, local, or tribal gov't