Federal Register. Federal Family Education Loan Program and William D. Ford Federal Direct Loan Program.
Ford Federal Direct Loan Program. Income Contingent Repayment Plan. Ford Federal Direct Loan. Understanding The William D. Ford Act Federal Program. Public Service Loan Forgiveness Program What is the Public Service Loan Forgiveness. Ford Federal Direct Loan.
Start Preamble. Start Printed Page 6. AGENCY: Office of Postsecondary Education, Department of Education. ACTION: Final regulations. SUMMARY: The Secretary amends the Federal Family Education Loan (FFEL) Program and the William D. Ford Federal Direct Loan (Direct Loan) Program regulations. These final regulations implement changes made to the Higher Education Act of 1. HEA) by the Higher Education Amendments of 1.
Amendments). The final regulations implement the teacher loan forgiveness programs in the FFEL and Direct Loan programs that were included in the 1. Amendments. In addition, these final regulations make conforming changes for both the FFEL Program and the Direct Loan Program, as well as unrelated technical amendments to the Direct Loan Program regulations. DATES: These regulations are effective July 1, 2.
A qualifying loan for PSLF is any loan you received under the William D. Ford Federal Direct Loan.
Start Further Info. FOR FURTHER INFORMATION CONTACT: For the FFEL Program, Ms. Beth Grebeldinger, or for the Direct Loan Program, Mr. Department of Education, 4.
Maryland Avenue, SW., Room 3. Regional Office Building #3, Washington, DC 2. Telephone: (2. 02) 7.
Ford Federal Direct Loan Program. Ford Federal Direct Loan (Direct Loan) Program includes Federal Direct Stafford/Ford. Ford Federal Direct Loan Program Direct PLUS Loan Borrower. Ford Federal Direct Loan Program.
If you use a telecommunications device for the deaf (TDD), you may call the Federal Information Relay Service (FIRS) at 1- 8. Individuals with disabilities may obtain this document in an alternate format (e.
Braille, large print, audiotape, or computer diskette) on request to one of the contact persons listed in the preceding paragraph. End Further Info. End Preamble. Start Supplemental Information. SUPPLEMENTARY INFORMATION: These regulations implement certain changes made to the HEA by the 1. Amendments (Pub. L. FFEL and Direct Loan programs. On August 1. 0, 2.
Secretary published a notice of proposed rulemaking (NPRM) for the FFEL and Direct Loan programs in the Federal Register (6. FR 4. 91. 24). In the preamble to the NPRM, on pages 4. Secretary discussed the proposed regulations that would implement the teacher loan forgiveness program in the FFEL and Direct Loan programs. These include the following: Amending .
Analysis of Comments and Changes The regulations in this document were developed through the use of negotiated rulemaking. Section 4. 92 of the HEA requires that, before publishing any proposed regulations to implement programs under Title IV of the HEA, the Secretary obtain public involvement in the development of the proposed regulations. After obtaining advice and recommendations, the Secretary must conduct a negotiated rulemaking process to develop the proposed regulations.
These regulations were published in proposed form on August 1. The Secretary invited comments on the proposed regulations by September 2. In response to the Secretary's invitation in the NPRM, 1. An analysis of the comments and of the changes in the regulations since publication of the NPRM follows.
We discuss substantive issues under the sections of the regulations to which they pertain. Generally, we do not address technical and other minor changes—and suggested changes the law does not authorize the Secretary to make. Section 6. 82. 2. General Comment: One commenter requested additional information regarding the regulatory requirement that the loan for which the borrower is requesting forgiveness must have been made prior to the end of the fifth year of qualifying teaching service. Discussion: The regulations require that the loan for which forgiveness is sought must have been made prior to the end of the five- year qualifying teaching service.
This requirement was included to be consistent with the stated intent of the statute that the teacher loan forgiveness programs encourage individuals to enter and continue in the teaching profession. We believe that there needs to be a safeguard against the possibility that a borrower, who after meeting the teaching requirements of the forgiveness program, quits teaching, returns to school to train for another profession and then asks to have $5,0. To avoid this situation, the regulations require that loans for which forgiveness is being sought must have been made prior to the end of the qualifying five- year teaching service. Comment: Four commenters recommended modifying . Discussion: We agree that the regulations would be clearer with the recommended change.
Change: We have revised the language in both . Section 6. 82. 2. Borrower Eligibility Comment: Four commenters stated that they believed that the discussion in the preamble to the NPRM, regarding when the borrower's qualifying teaching at the school begins, seemed contradictory to the statute and the proposed regulations and requested clarification. Discussion: To clarify, if the school at which a borrower is performing qualifying teaching is not a designated eligible low- income school when the borrower begins the teaching service, but becomes such a school while the borrower is performing qualifying Start Printed Page 6. Any years of teaching prior to that designation do not apply to the five complete, consecutive years required for forgiveness. On the other hand, if an eligible, designated school loses its designation while the borrower is teaching there, any continuous subsequent years of qualified teaching service at that same school may be included in the five- year requirement.
Comment: Three commenters suggested specifically including criteria to . Discussion: The regulations that the commenters wish to revise are based directly on the statute and the requested change is not supported by the statutory language. Special education teaching is not one of the specific criteria included in the statute, but the teacher may qualify for the loan forgiveness program if the qualifying teaching otherwise meets the statutory requirements. The regulations do specifically include special education teachers in the definition of a teacher, so if a special education teacher met the other criteria in paragraphs (c)(3) or (c)(4), he or she could be eligible for teacher loan forgiveness.
Comment: One commenter suggested that the regulations provide certification criteria for school officials to follow to ensure consistent, objective and fair determinations of a teacher's eligibility to participate in the loan forgiveness program. Discussion: We do not see a need for such regulatory guidance. The statute requires that the chief administrative officer of the school determine that a borrower has met the criteria outlined in the statute and the regulations. We believe that the criteria are sufficiently clear and that school administrators will be able to provide the needed certifications.
Our experience with the certifications used in the Federal Perkins Loan Program, while based on slightly different eligibility criteria, has shown that school administrators can apply the required standards without prescriptive regulatory guidance. Comment: One commenter indicated that . This commenter requested that these regulations allow borrowers to delay their return to qualifying teaching service to the beginning of the next academic year if necessary, as was done in connection with the special grace period for borrowers returning from active duty military service. Discussion: We agree that due to the scheduling of academic years, it may be impossible for a teacher to resume teaching immediately at the conclusion of one of the exempted conditions.
Such “gap” periods should not penalize a borrower who met an exempted condition. Change: We have made a change in . Comment: One commenter suggested an expansion of conditions that would not constitute a break in the consecutive, complete qualifying teaching service. The commenter argued that there are other conditions over which the teacher has no control.
Among the conditions suggested were: periods of protracted labor disputes, natural disasters or emergencies, and funding shortfalls. Discussion: While we acknowledge that these conditions are events over which the teacher may have no control, it was not our intent to address every possible event that could disrupt the school year. We believe that if the events listed by the commenter occur, the school or school district would extend the academic year or declare that the academic year has been completed early. Either of these results would qualify the year as a complete academic year for purposes of teacher loan forgiveness. Comment: One commenter suggested that the school's certifying chief administrative official should have greater flexibility in determining the relationship of the studies the borrower undertakes in returning to postsecondary education while taking a break in their qualifying teaching if the borrower returns to qualifying teaching.
Discussion: We believe that it is appropriate to require that the teacher undertake education that is “directly related” to the performance of the service that the statute wants to support. We do not think it would be appropriate to allow the borrower to engage in postsecondary education that is unrelated to the performance of the qualifying service and still receive the loan forgiveness. Sections 6. 82. 2.
Forgiveness Amount Comment: Three commenters suggested changing the regulations to clarify that a borrower with a consolidation loan qualifies for loan forgiveness only if the consolidation loan is outstanding and the forgiveness amount relates to a qualifying loan (a subsidized or unsubsidized loan made under the FFEL Program or the Direct Loan Program) that was repaid by the Consolidation Loan. Discussion: We agree that the regulations need to be clarified to describe the relationship between the consolidation loan and the underlying loans for purposes of the loan forgiveness. Change: We have changed . Comment: Three commenters suggested clarifying that the forgiveness amount total of $5,0. Discussion: We agree that this change would clarify the regulations. Change: We have made the suggested change to . Comment: Four commenters suggested revising .
Discussion: Proposed .