Publication Date
September 23, 2019
Posted Date
September 23, 2019
Subject
Final Regulation – Borrower Defense to Repayment
FR Type
Final
[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 [www.gpo.gov] [FR Doc No: 2019-19309] [[Page 49787]] Vol. 84 Monday, 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]] ----------------------------------------------------------------------- DEPARTMENT OF EDUCATION 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 in SUPPLEMENTARY INFORMATION. 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: Barbara.Hoblitzell@ed.gov. For further information related to false certification loan discharge and closed school loan discharge, Brian Smithat (202) 453-7440 or by email at: Brian.Smith@ed.gov. For further information regarding financial responsibility and institutional accountability, John Kolotos (202) 453-7646 or by email at: John.Kolotos@ed.gov. For information regarding recalculation of subsidized usage periods and interest accrual, Ian Foss at (202) 377-3681 or by email at: Ian.Foss@ed.gov. 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.
