[Federal Register Volume 59, Number 125 (Thursday, June 30, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-16002]


[[Page Unknown]]

[Federal Register: June 30, 1994]


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DEPARTMENT OF EDUCATION
34 CFR Part 682

RIN 1840-AB83

 

Federal Family Education Loan Program

AGENCY: Department of Education.

ACTION: Notice of revised effective date; final regulations.

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SUMMARY: In the Federal Register of April 29, 1994 (59 FR 22462), the 
Secretary published final regulations for the Federal Family Education 
Loan (FFEL) Program, 34 CFR part 682. The Secretary is delaying the 
effective date of these regulations until July 1, 1994. By delaying the 
effective date, the Secretary seeks to reduce confusion about the 
effective date of these regulations by making the effective date 
consistent with the effective date of other changes to the regulations 
published by the Secretary at that same time.

EFFECTIVE DATE: These regulations take effect on July 1, 1994, with the 
exception of the amendments to Secs. 682.202, 682.208, 682.402, 
682.410, and 682.411. These amendments will become effective after the 
information collection requirements contained in these sections have 
been submitted by the Department of Education and approved by the 
Office of Management and Budget under the Paperwork Reduction Act of 
1980.
    Subject to approval under the Paperwork Reduction Act, the 
following applicability dates also apply to certain provisions of these 
regulations:
    Section 682.202(c), which reduces the amount of the origination fee 
charged on an FFEL Program loan, applies to loans for which the first 
disbursement is made on or after July 1, 1994, if the period of 
enrollment for which the loan is intended either includes that date or 
begins on or after that date.
    Section 682.202(d), which reduces the amount of the insurance 
premium charged on an FFEL Program loan, applies to loans for which the 
first disbursement is made on or after July 1, 1994, if the period of 
enrollment for which the loan is intended either includes that date or 
begins on or after that date.
    Section 682.410(b)(5)-(7), which requires guaranty agencies to warn 
defaulters that they may be subject to administrative wage garnishment 
and offset against Federal or State income tax refunds, applies to 
claims paid by the agency on or after August 27, 1994.
    Section 682.411, which requires lenders to warn delinquent 
borrowers that they may be subject to administrative wage garnishment 
and offset against Federal or State income tax refunds if they default 
on their loans, applies to loans on which the first day of delinquency 
is on or after August 27, 1994.

FOR FURTHER INFORMATION CONTACT: George Harris, Senior Program 
Specialist, Loans Branch, Division of Policy Development, Policy, 
Training, and Analysis Service, U.S. Department of Education, 400 
Maryland Avenue, SW. (Room 4310, ROB-3), Washington, DC 20202-5449. 
Telephone: (202) 708-8242. Individuals who use a telecommunications 
device for the deaf (TDD) may call the Federal Information Relay 
Service (FIRS) at 1-800-877-8339 between 8 a.m. and 8 p.m., Eastern 
time, Monday through Friday.

SUPPLEMENTARY INFORMATION: The regulations which are affected by this 
change in effective date amend the FFEL loan discharge regulations. The 
effective date of these regulations has been delayed until July 1, 1994 
so that all of the regulations implementing changes to the Higher 
Education Act of 1965, as amended, (HEA), by the Higher Education 
Amendments of 1992, and certain technical changes made by the Cash 
Management Improvement Act Amendments of 1993 in the Federal Family 
Education Loan (FFEL) Program which were published in the Federal 
Register before May 1, 1994 will take effect on July 1, 1994. The 
Secretary was informed that there was confusion among participants in 
the FFEL Program about the effective date of the regulations because 
other regulations published at the same time and implementing other 
changes to the HEA were not effective until July 1, 1994. The Secretary 
is delaying the effective date of these regulations to resolve the 
confusion and to afford participants in the FFEL program additional 
time to comply with the requirements of these regulations.

Waiver of Rulemaking

    In accordance with section 431(b)(2)(A) of the General Education 
Provisions Act (20 U.S.C. 1232 (b)(2)(A)), and the Administrative 
Procedure Act (5 U.S.C. 553), it is the practice of the Secretary to 
offer interested parties the opportunity to comment on proposed 
regulations. However, because the Secretary is delaying the effective 
date of these regulations for only a brief period to reduce confusion 
and afford participants in the FFEL program additional time for 
compliance, the Secretary finds, in accordance with 5 U.S.C. 553(b)(B), 
that the solicitation of public comment on this change in the effective 
date would be impracticable and contrary to the public interest.

(Catalog of Federal Domestic Assistance Number: 84.032 Federal 
Family Education Loan Program)

    Dated: June 27, 1994.
Richard W. Riley,
Secretary of Education.
[FR Doc. 94-16002 Filed 6-29-94; 8:45 am]
BILLING CODE 4000-01-P