Department Releases Draft Regulations For Student Loan Negotiated Rulemaking
Yesterday afternoon the Department released draft regulations for the student loan negotiated rulemaking (negreg) committee to discuss at next week's meeting. Earlier this month the negreg committee discussed six agenda items spread across two packages. A third package that focused on trying to find ways to address the credit problems amongst lenders is not addressed in these regulations. Summaries of the previous negreg discussions are available online.
The draft regulations provided by the Department address the following issues:
Income-based repayment
Debt-to-income ratio for economic hardship deferment
Public service loan forgiveness
Harmonizing HEROES waivers and other benefits provided to returning and active duty military
No draft regulatory language has been provided on defining a not-for-profit lender, although the Department still plans to do so. Federal preemption is also not addressed in the draft regulations. Federal preemption was one of the most contested agenda items from the previous session and focused on whether the Department should preempt state laws meant to govern appropriate behavior between lenders and schools.
NASFAA is currently studying the draft regulations to determine how it will affect students and families as well as financial aid administrators who will be called on to implement them. NASFAA Director of Congressional Relations Larry Zaglaniczny - who is currently serving on the negreg committee - will share all comments, opinions, and suggested changes with federal and nonfederal negotiators. All comments on these issues or the draft regulatory language should be sent to negreg@nasfaa.org by 2:00 PM Sunday, February 3 so they can be compiled for Monday morning's negreg session.
By Justin Draeger NASFAA Assistant Director for Communications
Posted 01/31/08 to www.NASFAA.org. Redistribution to non-NASFAA institutions is prohibited. Please submit Web Site questions or comments to Web@NASFAA.org.
