Preview: Negotiated Rulemaking on PAYE Begins Next Week

By Katy Hopkins, Communications Staff, and Karen McCarthy, Policy & Federal Relations Staff 

Selected negotiators, including seven NASFAA members, will embark on Washington, D.C. next week for the first of three scheduled rulemaking sessions focusing on the expansion of the Pay As You Earn (PAYE) repayment plan.

Negotiators will meet Feb. 24-26 at the Department of Education’s office at 1990 K Street NW, Washington, D.C. 20006. The hearings are open to the public, and NASFAA will cover each session in Today’s News.

Per ED, the intended work of the committee is twofold:

  • “(1) prepare proposed regulations to establish a new Pay as You Earn repayment plan for those not covered by the existing Pay as You Earn repayment plan in the Federal Direct Loan Program;
  • and (2) establish procedures for Federal Family Education Loan (FFEL) Program loan holders to use to identify U.S. military servicemembers who may be eligible for a lower interest rate on their FFEL Program loans under section 527 of the Servicemembers Civil Relief Act (SCRA).”

Additional topics may be added to the negotiating agenda by unanimous consent of the negotiators. The final agenda will be determined on the first day of negotiations.

In June 2014, President Obama issued a memorandum that included expanding PAYE to an additional 5 million borrowers by December 31, 2015. The president went even further in his fiscal year (FY) 2016 budget request, calling for PAYE to be an option for all new borrowers on or after July 1, 2016, among other program modifications. The committee will likely debate feasible ways to meet the president’s goals.

Seven NASFAA members are negotiators: 

  • Scott Cline, director of financial aid at California College of the Arts and Clair Jacobi, director of financial aid at the New York Institute of Technology College of Osteopathic Medicine will represent financial aid administrators as primary negotiator and alternate, respectively;
  • Patricia Hurley, associate dean and financial aid director at Glendale Community College, will serve as the alternate negotiator representing Minority-serving institutions;
  • Shannon Sheaff, director of financial aid at Mohave Community College, and Helen Faith, director of financial aid at Lane Community College, will represent two-year public institutions as the primary and alternate negotiator, respectively;
  • Craig Fennell, director of student financial services at Temple University, and Rachelle Feldman, assistant vice chancellor and director of financial aid at the University of California-Berkeley will represent four-year public institutions as the primary and alternate negotiator, respectively; and
  • Marion Dill, director of financial aid at Lee University, and David DeBoer, executive director of financial aid at Davenport University, will represent private, non-profit institutions as the primary and alternate negotiator, respectively.

Relevant documents, including the roster of negotiators, issue papers, and supporting documents will be posted to ED’s Negotiated Rulemaking webpage. Stay tuned to Today’s News next week for coverage of the session, and find all of our coverage of past sessions in the Negotiated Rulemaking center.


Publication Date: 2/17/2015

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