Publication Date
September 23, 2019
Final Regulation – Borrower Defense to Repayment
FR type
Effective Date
July, 1 2020

[Federal Register Volume 84, Number 184 (Monday, September 23, 2019)]
[Rules and Regulations]
[Pages 49788-49933]
From the Federal Register Online via the Government Publishing Office []
[FR Doc No: 2019-19309]

[[Page 49787]]

Vol. 84


No. 184

September 23, 2019

Part II

Department of Education


34 CFR Parts 668, 682, and 685

Student Assistance General Provisions, Federal Family Education Loan 
Program, and William D. Ford Federal Direct Loan Program; Final Rule

Federal Register / Vol. 84 , No. 184 / Monday, September 23, 2019 / 
Rules and Regulations

[[Page 49788]]



34 CFR Parts 668, 682, and 685

RIN 1840-AD26
[Docket ID ED-2018-OPE-0027]

Student Assistance General Provisions, Federal Family Education 
Loan Program, and William D. Ford Federal Direct Loan Program

AGENCY: Office of Postsecondary Education, Department of Education.

ACTION: Final rule.


SUMMARY: The Department of Education (Department or We) establishes new 
Institutional Accountability regulations governing the William D. Ford 
Federal Direct Loan (Direct Loan) Program to revise a Federal standard 
and a process for adjudicating borrower defenses to repayment claims 
for Federal student loans first disbursed on or after July 1, 2020, and 
provide for actions the Secretary may take to collect from schools the 
amount of financial loss due to successful borrower defense to 
repayment loan discharges. The Department also amends regulations 
regarding pre-dispute arbitration agreements or class action waivers as 
a condition of enrollment, and requires institutions to include 
information regarding the school's internal dispute resolution and 
arbitration processes as part of in the borrower's entrance counseling. 
We amend the Student Assistance General Provisions regulations to 
establish the conditions or events that have or may have an adverse, 
material effect on an institution's financial condition and which 
warrant financial protection for the Department, update the definitions 
of terms used to calculate an institution's composite score to conform 
with changes in certain accounting standards, and account for leases 
and long-term debt. Finally, we amend the loan discharge provisions in 
the Direct Loan Program.

DATES: These regulations are effective July 1, 2020. The incorporation 
by reference of certain publications listed in these regulations is 
approved by the Director of the Federal Register as of July 1, 2020. 
Implementation date: For the implementation dates of the included 
regulatory provisions, see the Implementation Date of These Regulations 

FOR FURTHER INFORMATION CONTACT: For further information related
to borrower defenses to repayment, pre-dispute arbitration agreements, internal 
dispute processes, and guaranty agency fees, Barbara  Hoblitzell
at (202) 453-7583 or by email at: 

For further information related to false certification loan discharge and closed school loan discharge, Brian Smithat (202) 453-7440 or by  email at:
For further information regarding financial responsibility and institutional accountability, John Kolotos (202) 453-7646 or by email at:

For information regarding recalculation of subsidized usage periods and interest accrual, Ian Foss at (202) 377-3681 or by email at:  If you use a telecommunications device for the deaf (TDD) or a text telephone (TTY), call the Federal Relay Service (FRS), toll free, at 1-  800-877-8339.