August 20, 1999
Volume 99 - Issue 43


Notice of Proposed Rulemaking Concerning Student Assistance General Provisions-Cohort Default Rate

The Department of Education (ED) recently released a notice of proposed rulemaking, dated July 30, 1999, regarding the calculation of a school's Federal Family Education Loan Program (FFELP) default rate, William D. Ford Federal Direct Loan Program cohort rate, and weighted average cohort rate.  The proposed regulations incorporate provisions contained in the recent reauthorization of the Higher Education Act (HEA).  The proposed regulatory changes are as follows:

. Changes to Section  668.17    Default Reduction and Prevention Measures:

Challenges and Adjustments to Inaccurate Data Used to Calculate FFELP Cohort Default Rates, Direct Loan Default Rates, or Weighted Average Cohort Rates
Deadline for Publishing Rates
Loss of Pell Eligibility
Liability for Unsuccessful Appeals
Participation Rate Index
Mitigating Circumstances Appeals
Other Mitigating Circumstances Appeals
Definition of "Default"
Loan Servicing Calculation
Definition of "Loan Servicing Records"
Special Institutions
. Addition of Appendix H to Part 668    Default Management Plans for Special Institutions
Core Default Reduction Strategies
Additional Default Reduction Strategies
Defining the Roles and Responsibilities of Independent Third Party
Statistics for Measuring Progress
Comments regarding these proposed changes are due on or before September  14, 1999. Submissions should be sent to Kenneth Smith, U.S. Department of Education, P.O. Box 23272, Washington,  DC 20026-3272.  Comments may also be sent electronically to: CDRNPRM@ed.gov.

Questions regarding this Federal Register may be directed to Kenneth Smith at (202) 708-8242.  A copy of the Federal Register can be found on ED's web site at http://ifap.ed.gov. If you are unable to access this web site and would like a copy, please contact Lynda Reid at (801) 321-7211. Any questions regarding this bulletin can be directed to the UHEAA Policy and Training Department at (801) 321-7166 or by e-mail at cjudd@utahsbr.edu.