Yesterday the Department released proposed draft regulations for the student loan negotiated rulemaking (negreg) committee to discuss at next week's meetings. Those meetings are scheduled to be the third and final round of negotiations before the Department drafts a notice of proposed rulemaking (NPRM). 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 in the next couple of days.

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 12:00 AM (EST) Monday, March 2 so they can be compiled for that morning's negreg session.

Resources

• Second Round Of Student Loans Negotiated Rulemaking Concludes
• Student Loan Negotiators Carefully Examine Income Based Repayment Provisions
• Student Loan Negotiators Tackle Public Service Loan Forgiveness

By Justin Draeger
NASFAA Assistant Director for Communications

Posted 02/27/08 to www.NASFAA.org. Redistribution to non-NASFAA institutions is prohibited. Please submit Web Site questions or comments to Web@NASFAA.org.