August 30, 1999
Volume 99 - Issue 52


Notice of Proposed Rulemaking Concerning Federal Family Education Loan Program and the William D. Ford Federal Direct Loan Program

The Department of Education (ED) recently released a notice of proposed rulemaking, dated August 10, 1999, concerning changes to the Federal Family Education Loan Program (FFELP) and the William D. Ford Federal Direct Loan Program.  The proposed regulations incorporate provisions contained in the recent reauthorization of the Higher Education Act (HEA).  The proposed regulatory changes impact the following sections of 34 CFR:

Part 682  Federal Family Education Loan Program

. Sec.  682.102 Obtaining and Repaying a Loan
. Sec.  682.200 Definitions
. Sec.  682.201 Eligible Borrowers
. Sec.  682.202 Permissible Charges by Lenders to Borrowers
. Sec.  682.204 Maximum Loan Amounts
. Sec.  682.206 Due Diligence in Making a Loan
. Sec.  682.207 Due Diligence in Disbursing a Loan
. Sec.  682.209 Repayment of a Loan
. Sec.  682.210 Deferment
. Sec.  682.211 Forbearance
. Sec.  682.300 Payments of Interest Benefits on Stafford and Consolidation Loans
. Sec.  682.301 Eligibility of Borrowers for Interest Benefits on Stafford and Consolidation Loan
. Sec.  682.401 Basic Program Agreement
. Sec.  682.402 Death, Disability, Closed School, False Certification, Unpaid Refunds, and Bankruptcy Payments
. Sec.  682.406 Conditions of Reinsurance Coverage
. Sec.  682.409 Mandatory Assignment by Guaranty Agencies of Defaulted Loans to the Secretary
. Sec.  682.414 Records, Reports, and Inspection Requirements for Guaranty Agency Programs
. Sec.  682.603 Certification by a Participating School in Connection with a Loan Application
. Sec.  682.604 Processing the Borrower's Loan Proceeds and Counseling Borrowers
. Sec.  682.610 Administrative and Fiscal Requirements for Participating Schools
Part 685 William D. Ford Federal Direct Loan Program
. Sec.  685.102 Definitions
. Sec.  685.201 Obtaining a Loan
. Sec.  685.203 Loan Limits
. Sec.  685.204 Deferment
. Sec.  685.205 Forbearance
. Sec.  685.207 Obligation to Repay
. Sec.  685.212 Discharge of a Loan Obligation
. Sec.  685.215 Unpaid Refund Discharge
. Sec.  685.216 Consolidation
. Sec.  685.300 Agreements Between an Eligible School & ED for Participation in the Direct Loan Program
. Sec.  685.301 Origination of a Loan By a Direct Loan Program School
. Sec.  685.303 Processing Loan Proceeds
. Sec.  685.304 Counseling Borrowers
. Sec.  685.402 Criteria for Schools to Originate Loans
Comments regarding these proposed changes are due on or before September 15, 1999. Submissions should be sent to Ms. Patsy Beavan and Ms. Nicki Meoli, U.S. Department of Education, P.O. Box 23272, Washington,  DC 20026-3272.  Comments may also be sent electronically to: loansnprm@ed.gov.

Questions regarding this Federal Register may be directed to Ms. Patsy Beavan, FFELP, or Ms. Nicki Meoli, Direct Loan Program, 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.