On May 16, the Department of Education published interim final rules limiting a student’s eligibility for subsidized Direct Loans to 150 percent of the length of the student’s program of study. The rules were triggered by an amendment to the Higher Education Act made by sec. 100301 of P.L. 112-141.
In response to the Department of Education’s (ED) call for comments on the interim final rule, NASFAA has submitted comments on eight different aspects of the new regulations. The response expresses appreciation for ED’s assumption of responsibility for tracking eligibility and notifying students of their limits, but articulates concerns about the way the interim final rule interprets the law. Although ED seeks equitable treatment of students in similar circumstances, NASFAA’s response takes a different view of what constitutes equity in some cases, and points out inconsistencies in how this standard seems to be applied.
“We commend the Department for the candid discussion of issues in the preamble to the interim final rules and for the very helpful examples. Implementing this law equitably is a seriously challenging task. While we have some limited disagreements as to what constitutes equity, we appreciate the Department’s attempts at identifying and resolving those inequities,” President Justin Draeger said in the introduction to NASFAA’s comments.
Publication Date: 7/3/2013