August 30, 1999
Volume 99 - Issue 53


Notice of Proposed Rulemaking Concerning Federal Family Education Loan Program

The Department of Education (ED) recently released a notice of proposed rulemaking, dated August 3, 1999, regarding items that affect guaranty agencies and lenders in the Federal Family Education 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:

. Sec.  668.205 Disclosure Requirements for Lenders
. Sec.  668.207 Due Diligence in Disbursing a Loan
. Sec.  668.208 Due Diligence in Servicing a Loan
. Sec.  668.210 Deferment
. Sec.  668.211 Forbearance
. Sec.  668.302 Payment of Special Allowance on FFELP Loans
. Sec.  668.305 Procedures for Payment of Interest Benefits & Special Allowance and Collection of Origination  Loan Fees
. Sec.  668.400 Agreements Between a Guaranty Agency and the Secretary
. Sec.  668.401 Basic Program Agreement
. Sec.  668.402 Death, Disability, Closed School, False - Certification, and Bankruptcy Payments
. Sec.  668.404 Federal Reinsurance Agreement
. Sec.  668.406 Conditions for Claim Payments From the Federal Fund and for Reinsurance Coverage
. Sec.  668.409 Mandatory Assignment by Guaranty Agencies of Defaulted Loans to the Secretary
. Sec.  668.410 Fiscal, Administrative, and Enforcement Requirements
. Sec.  668.411 Lender Due Diligence in Collecting Guaranty Agency Loans
. Sec.  668.412 Consequences of the Failure of a Borrower or Student to Establish Eligibility
. Sec.  668.413 Remedial Actions
. Sec.  668.414 Records, Reports, and Inspection Requirements for Guaranty Agency Programs
. Sec.  668.417 Determination of Federal Funds or Assets to be Returned
. Sec.  668.418 Prohibited Uses of the Assets of the Operating Fund During Periods In Which the Operating Fund Contains       Transferred Funds Owed to the Federal Fund
. Sec.  668.419 Guaranty Agency Federal Fund
. Sec.  668.420 Federal Nonliquid Assets
. Sec.  668.421 Funds Transferred From the Federal Fund to the Operating Fund
. Sec.  668.422 Guaranty Agency Repayment of Funds Transferred From the Federal Fund
. Sec.  668.423 Guaranty Agency Operating Fund
. Subpart H
. Appendix D
Comments regarding these proposed changes are due on or before September 15, 1999. Submissions should be sent to Ms. Pamela A. Moran, U.S. Department of Education, P.O. Box 23272, Washington,  DC 20202-5449.  Comments may also be sent electronically to: ffelnprm@ed.gov.

Questions regarding this Federal Register may be directed to Mr. George Harris 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.D