United States Government Publishing Office publisher pbl distributor dst United States National Archives and Records Administration Office of the Federal Register author aut Government Organization text government publication eng FR Regulatory Information 2016_register executive 2016-11-01 article Part II Rules and Regulations D09002ee1c7f33fca D09002ee1c7f340ba United States Department of Education originator org United States Government Agency or Subagency The Secretary establishes new regulations governing the William D. Ford Federal Direct Loan (Direct Loan) Program to establish a new Federal standard and a process for determining whether a borrower has a defense to repayment on a loan based on an act or omission of a school. We also amend the Direct Loan Program regulations to prohibit participating schools from using certain contractual provisions regarding dispute resolution processes, such as predispute arbitration agreements or class action waivers, and to require certain notifications and disclosures by schools regarding their use of arbitration. We amend the Direct Loan Program regulations to codify our current policy regarding the impact that discharges have on the 150 percent Direct Subsidized Loan Limit. We amend the Student Assistance General Provisions regulations to revise the financial responsibility standards and add disclosure requirements for schools. Finally, we amend the discharge provisions in the Federal Perkins Loan (Perkins Loan), Direct Loan, Federal Family Education Loan (FFEL), and Teacher Education Assistance for College and Higher Education (TEACH) Grant programs. The changes will provide transparency, clarity, and ease of administration to current and new regulations and protect students, the Federal government, and taxpayers against potential school liabilities resulting from borrower defenses. 81 FR 75926 https://www.govinfo.gov/app/details/FR-2016-11-01/2016-25448 2016-25448 fr01no16-17 RIN 1840-AD19 4000-01-P Docket ID ED-2015-OPE-0103 https://www.govinfo.gov/app/details/FR-2016-11-01/2016-25448 https://www.govinfo.gov/content/pkg/FR-2016-11-01/html/2016-25448.htm https://www.govinfo.gov/content/pkg/FR-2016-11-01/pdf/2016-25448.pdf Claims Income Taxes Administrative Practice and Procedure Colleges and Universities Consumer Protection Grant Programs-Education Loan Programs-Education Reporting and Recordkeeping Requirements Selective Service System Student Aid Vocational Education Reporting and Recordkeeping Education Elementary and Secondary Education 164 p. 75926 76089 81 FR 75926 Title 34 Part 30 34 CFR Part 30 Title 34 Part 668 34 CFR Part 668 Title 34 Part 674 34 CFR Part 674 Title 34 Part 682 34 CFR Part 682 Title 34 Part 685 34 CFR Part 685 Title 34 Part 686 34 CFR Part 686 RIN 1840-AD19 Student Assistance General Provisions, Federal Perkins Loan Program, Federal Family Education Loan Program, William D. Ford Federal Direct Loan Program, and Teacher Education Assistance for College and Higher Education Grant Program; Federal Register Vol. 81, Issue RULE 2016-25448 II DEPARTMENT OF EDUCATION 2017-07-01 Docket ID ED-2015-OPE-0103 4000-01-P 2016-25448 Final regulations.

The Secretary establishes new regulations governing the William D. Ford Federal Direct Loan (Direct Loan) Program to establish a new Federal standard and a process for determining whether a borrower has a defense to repayment on a loan based on an act or omission of a school. We also amend the Direct Loan Program regulations to prohibit participating schools from using certain contractual provisions regarding dispute resolution processes, such as predispute arbitration agreements or class action waivers, and to require certain notifications and disclosures by schools regarding their use of arbitration. We amend the Direct Loan Program regulations to codify our current policy regarding the impact that discharges have on the 150 percent Direct Subsidized Loan Limit. We amend the Student Assistance General Provisions regulations to revise the financial responsibility standards and add disclosure requirements for schools. Finally, we amend the discharge provisions in the Federal Perkins Loan (Perkins Loan), Direct Loan, Federal Family Education Loan (FFEL), and Teacher Education Assistance for College and Higher Education (TEACH) Grant programs. The changes will provide transparency, clarity, and ease of administration to current and new regulations and protect students, the Federal government, and taxpayers against potential school liabilities resulting from borrower defenses.

These regulations are effective July 1, 2017. Implementation date: For the implementation dates of the included regulatory provisions, see the Implementation Date of These Regulations section of this document. For further information related to borrower defenses, Barbara Hoblitzell at (202) 453-7583 or by email at: Barbara.Hoblitzell@ed.gov. For further information related to false certification and closed school loan discharges, Brian Smith at (202) 453-7440 or by email at: Brian.Smith@ed.gov. For further information regarding institutional accountability, John Kolotos or Greg Martin at (202) 453-7646 or (202) 453-7535 or by email at: John.Kolotos@ed.gov or Gregory.Martin@ed.gov. Claims Income Taxes Administrative Practice and Procedure Colleges and Universities Consumer Protection Grant Programs-Education Loan Programs-Education Reporting and Recordkeeping Requirements Selective Service System Student Aid Vocational Education Reporting and Recordkeeping Education Elementary and Secondary Education Student Assistance General Provisions: Federal Perkins Loan Program, Federal Family Education Loan Program, William D. Ford Federal Direct Loan Program, and Teacher Education Assistance for College and Higher Education Grant Program , Barbara.Hoblitzell@ed.gov Brian.Smith@ed.gov Gregory.Martin@ed.gov John.Kolotos@ed.gov http://ope.ed.gov/accreditation/GetDownLoadFile.aspx http://ticas.org/content/pub/ticas-detailed-comments-proposed-gainful-employment-rule http://www2.ed.gov/offices/OSFAP/defaultmanagement/schooltyperates.pdf http://www2.ed.gov/policy/highered/reg/hearulemaking/2012/2013-repayment-rate-data.xls http://www2.ed.gov/policy/highered/reg/hearulemaking/2016/index.html https://nces.ed.gov/programs/digest/d15/tables/dt15_331.90.asp?current=yes https://philadelphiafed.org/-/media/research-and-data/publications/business-review/2013/q3/brq313_economics-of-student-loan-borrowing-and-repayment.pdf https://studentaid.ed.gov/repay-loans/default https://studentaid.ed.gov/sa/about/data-center/school/hcm https://studentaid.ed.gov/sa/about/data-center/student/title-iv https://tcf.org/content/report/how-college-enrollment-contracts-limit-students-rights/ Regulations.gov studentaid.gov www.adr.org www.asa.org/in-default/consequences/ www.bls.gov/ncs/ect/sp/ecsuphst.pdf www.chronicle.com/blogs/ticker/mo-appeals-court-upholds-ex-students-win-in-suit-against-vatterott-college/84777 www.federalregister.gov www.ftc.gov/bcp/policystmt/ad-decept.htm www.ftc.gov/policy/advisory-opinions/letter-stephanie-rosenthal-chief-staff-division-financial-practices-bureau www.gpo.gov/fdsys www.hrsa.gov/about/budget/budgetjustification2017.pdf www.investopedia.com/articles/analyst/112702.asp#ixzz4JKIpsbwk www.nber.org/papers/w20861.pdf www.nber.org/papers/w21300 www.newamerica.org/education-policy/policy-papers/improving-gainful-employment/ www.regulations.gov/document?D=ED-2014-OPE-0039-2390 www.regulations.gov/document?D=ED-2015-OPE-0103-0221 www.regulations.gov/document?D=ED-2015-OPE-0103-10723 www.regulations.gov/document?D=ED-2015-OPE-0103-10729 www.whitehouse.gov/sites/default/files/omb/assets/omb/circulars/a004/a-4.pdf www.whitehouse.gov/sites/default/files/page/files/20160718_cea_student_debt.pdf www2.ed.gov/documents/press-releases/heald-fine-action-placement-rate.pdf Vol. 81, no. 211 Office of the Federal Register, National Archives and Records Administration 2016-11-01 continuing daily deposited born digital 607 p. Table of Contents: AE 2.7: GS 4.107: AE 2.106: KF70.A2 https://www.govinfo.gov/app/details/FR-2016-11-01 P0b002ee19200f498 0097-6326 0042-1219 0364-1406 769-004-00000-9 000582072 f:fr01no16 https://www.govinfo.gov/app/details/FR-2016-11-01 https://www.govinfo.gov/content/pkg/FR-2016-11-01/pdf/FR-2016-11-01.pdf https://www.govinfo.gov/content/pkg/FR-2016-11-01/xml/FR-2016-11-01.xml fdlp 75671 76270 DGPO 2016-11-01 2024-06-01 FR-2016-11-01 machine generated eng FR FR-2016-11-01 81 211