November 2, 1999
Volume 99 - Issue 76


Federal Family Education Loan Program Final Regulations

The Department of Education (ED) recently published a Federal Register, dated October 29, 1999, regarding items that affect guaranty agencies and lenders in the Federal Family Education Loan Program. The regulations incorporate provisions contained in the recent reauthorization of the Higher Education Act (HEA).  The regulatory changes impact the following sections of 34 CFR:

Part 682-Federal Family Education Loan (FFEL) Program
. Sec.  682.205  Disclosure Requirements for Lenders
. Sec.  682.207  Due Diligence in Disbursing a Loan
. Sec.  682.208  Due Diligence in Servicing a Loan
. Sec.  682.210  Deferment
. Sec.  682.211  Forbearance
. Sec.  682.302  Payment of Special Allowance on FFELP Loans
. Sec.  682.305  Procedures for Payment of Interest Benefits and  Special Allowance and Collection of Origination and Loan Fees
. Sec.  682.400  Agreements Between a Guaranty Agency and the Secretary
. Sec.  682.401  Basic Program Agreement
. Sec.  682.402  Death, Disability, Closed School, False -Certification, and Bankruptcy Payments
. Sec.  682.404  Federal Reinsurance Agreement
. Sec.  682.406  Conditions for Claim Payments From the Federal Fund and for Reinsurance Coverage
. Sec.  682.409  Mandatory Assignment by Guaranty Agencies of Defaulted Loans to the Secretary
. Sec.  682.410  Fiscal, Administrative, and Enforcement Requirements
. Sec.  682.411  Lender Due Diligence in Collecting Guaranty Agency Loans
. Sec.  682.412  Consequences of the Failure of a Borrower or Student to Establish Eligibility
. Sec.  682.413  Remedial Actions
. Sec.  682.414  Records, Reports, and Inspection Requirements for Guaranty Agency Programs
. Sec.  682.417  Determination of Federal Funds or Assets to be Returned
. Sec.  682.418  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.  682.419  Guaranty Agency Federal Fund
. Sec.  682.420  Federal Nonliquid Assets
. Sec.  682.421  Funds Transferred From the Federal Fund to the Operating Fund by a Guaranty Agency
. Sec.  682.422  Guaranty Agency Repayment of Funds Transferred From the Federal Fund
. Sec.  682.423  Guaranty Agency Operating Fund
. Subpart H
. Appendix D
A copy of the Federal Register can be found on ED's web site at http://ifap.ed.gov.  If you would like a hard copy, please contact Lynda Reid at (801) 321-7211.  Any questions regarding these regulations should be directed to the UHEAA Policy and Training Department at (801) 321-7166 or by e-mail at cjudd@utahsbr.edu.