As a participant on the negotiated rulemaking team (Team II) that reached consensus on school-based loan issues, NASFAA is prohibited from commenting negatively on the proposed rules that were issued on July 28th. However, NASFAA did seek clarification on a few issues in its NPRM comments that were submitted late last week.

NASFAA's comments suggested additional clarification on private education loan preferred lender lists. NASFAA also suggested that lenders be required to provide to an institution -- upon the school's request in cases where the lender may not be aware it is in a preferred lender arrangement -- any information regarding FFEL loans the lender will provide for the next award year. One other comment focused on a technical change to make consistent proposed regulations dealing with cohort default rates.

The Department will now consider all comments that have been submitted and issue final rules before November 1 (to conform with Master Calendar requirements). These rules will become effective on July 1, 2010.

Throughout the negreg process, NASFAA had provided several summaries of the discussions that provide background and context for these proposed rules. Those articles include:

• NASFAA Issues Summary and Analysis on School-Based Loan NPRM
• HEOA Negreg Team II: Negotiators Reach Consensus on Outstanding Issues
• HEOA Negreg Team II, Round Two: School-Based Loan Issues Team Reaches Tentative Agreement on Most Issues
• HEOA Negreg Team II, Round One: School-Based Loan Issues Concludes

Questions or concerns about any specific aspect of these provisions may be sent to policy@nasfaa.org.

Posted 08/31/09 to www.NASFAA.org. Redistribution to non-NASFAA institutions is prohibited. Please submit Web site questions or comments to Web@NASFAA.org.