[Federal Register Volume 60, Number 39 (Tuesday, February 28, 1995)]
[Notices]
[Pages 11004-11005]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-4875]




[[Page 11003]]

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Part V





Department of Education





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Borrower Defenses Regulations Negotiated Rulemaking Advisory Committee; 
Notice

  Federal Register / Vol. 60, No. 39 / Tuesday, February 28, 1995 / 
Notices   
[[Page 11004]] 

DEPARTMENT OF EDUCATION


Office of Postsecondary Education; Borrower Defenses Regulations 
Negotiated Rulemaking Advisory Committee; Establishment

AGENCY: Department of Education.

ACTION: Notice of intent to establish the Borrower Defenses Regulations 
Negotiated Rulemaking Advisory Committee (Committee) for the William D. 
Ford Federal Direct Loan (Direct Loan) Program, the Federal Family 
Education Loan (FFEL) Program, and the Federal Perkins Loan (Perkins) 
Program regulations.

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SUMMARY: The Secretary of Education and the Office of Postsecondary 
Education announce the intention to establish the Borrower Defenses 
Regulations Negotiated Rulemaking Advisory Committee to create draft 
proposed rules for borrower defenses in the Direct Loan, FFEL, and 
Perkins Programs.

DATES AND TIMES: The first meeting of the Committee is expected to be 
held in late March 1995. The specific time, date, and location will be 
announced in a subsequent notice prior to the meeting.

FOR FURTHER INFORMATION CONTACT: Nicki Meoli, Program Specialist, 
Policy Development Division, Office of Postsecondary Education, U.S. 
Department of Education, Room 3053, ROB-3, 600 Independence Avenue, SW, 
Washington, DC 20202-5400. Telephone: (202) 708-9406. 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 Secretary has determined that it is 
necessary and in the public interest to establish the Borrower Defenses 
Regulations Negotiated Rulemaking Advisory Committee. The Department of 
Education (Department) has retained the services of a professional 
mediator to serve as a neutral convener and facilitator for the 
negotiated rulemaking. The Committee will be balanced and represent all 
parties that will be affected by these rules. The Committee will 
include representatives of institutions of higher education, higher 
education organizations, student loan lenders, guaranty agencies, loan 
servicers, legal aid organizations, students, and the Department. 
Administrative support for the Committee will be provided by the Office 
of Postsecondary Education.

Issues To Be Negotiated

    The issues to be negotiated include which acts or omissions of an 
institution of higher education a borrower may assert as defenses to a 
demand for repayment of a loan made under the Direct Loan, FFEL, and 
Perkins Programs, and the consequences of such defenses for the 
institution, the Secretary, and, for FFEL Program loans, for the lender 
and the guaranty agency. The Committee may also negotiate issues 
regarding whether administrative procedures should be established to 
adjudicate whether a borrower has a valid defense and the effect the 
adjudication would have on the rights and liabilities of institutions, 
lenders, guaranty agencies, and the Secretary.

Agenda for First Meeting

    The draft agenda for the first meeting, which will be 
organizational, follows:
    (1) Welcoming remarks.
    (2) Introduction of facilitator and participants.
    (3) Discussion of procedural ground rules.
    (4) General discussion of participants' perspectives on substantive 
issues.
    (5) Development of issue agendas or drafts for subsequent meetings.

Structure of Committee

    The ultimate goal of negotiated rulemaking is to reach consensus 
among all committee members through discussion and negotiation among 
all interested and affected parties, including the Department. With 
this in mind, the Department will conduct these negotiations within a 
structure that is designed to reach this goal fairly and efficiently 
and give strong consideration to the complex nature of the issues to be 
negotiated. All members of the Committee will be able to participate in 
discussion and negotiation. The Office of Postsecondary Education has 
selected the members because they, and the groups they represent, will 
be affected by the final rule. Thus, the widest possible variety of 
interests will be represented in the negotiating process while 
maintaining the possibility of reaching informed agreement.
    The following list of organizations are ``full'' members of the 
Committee (some organizations with similar interests have joined as a 
coalition):

Department of Education
American Association of Community Colleges
American Association of Cosmetology Schools
American Association of State Colleges and Universities
American Council on Education
Association of American Universities
Career College Association
Coalition of private non-profit multi-State guaranty agencies
Consumer Bankers Association
Education Finance Council
Hispanic Association of Colleges and Universities
Legal Services Team (a coalition)
National Association of Independent Colleges and Universities
National Association of State Universities and Land Grant Colleges
National Association of Student Financial Aid Administrators
National Association for Equal Opportunity in Higher Education/United 
Negro College Fund (a coalition)
National Council of Higher Education Loan Programs
Sallie Mae
United States Student Association

Requests for Participation

    If you feel you represent, or wish to nominate someone who 
represents, a significantly affected interest that is not included in 
the above list, please send a request for participation to Nicki Meoli, 
Program Specialist, Policy Development Division, Office of 
Postsecondary Education, U.S. Department of Education, Room 3053, ROB-
3, 600 Independence Avenue, SW, Washington, DC 20202-5400, no later 
than 30 days after the publication of this notice.

The Application Must Include

    1. Name of the applicant or nominee and a description of the 
interest or interests to be represented;
    2. Evidence that the applicant or nominee is authorized to 
represent parties related to the interest or interests the person 
proposes to represent;
    3. A written commitment that the applicant or nominee will actively 
participate in good faith in the development of the rule under 
consideration; and
    4. The reasons that the organizations listed in the notice do not 
adequately represent the interest or interests of the person or 
organization submitting the application or nomination.
    Please note that participation in the rulemaking process is not 
limited to members of the Committee. Meetings are open to the public so 
interested parties may observe the negotiations, and there will be an 
allotted public comment period at each session for the public to 
communicate their views. There are expected to be a total of three 
meetings held in the Washington Metropolitan area. In addition, 
proposed [[Page 11005]] rules resulting from these negotiations will be 
published in the Federal Register with a comment period. The Department 
expects to publish these proposed rules by July 1, 1995. A final rule 
will be published by December 1, 1995.

    Dated: February 23, 1995.
Richard W. Riley,
Secretary of Education.
[FR Doc. 95-4875 Filed 2-27-95; 8:45 am]
BILLING CODE 4000-01-P