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ED/OPE

RIN: 1840-AD18

Publication ID: Fall 2015

Title: REPAYE
Abstract: On June 9, 2014, the President issued a memorandum (79 FR 33843) directing the Secretary to propose regulations by June 9, 2015, that will allow additional students who borrowed Federal Direct Loans to cap their Federal student loan payments at 10 percent of their income. The memorandum further directed the Secretary to issue final regulations after considering all public comments with the goal of making the repayment option available to borrowers by December 31, 2015.
Agency: Department of Education(ED)	Priority: Economically Significant
RIN Status: Previously published in the Unified Agenda	Agenda Stage of Rulemaking: Final Rule Stage
Major: Yes	Unfunded Mandates: No
CFR Citation: 34 CFR 682.202 34 CFR 685.202 34 CFR 685.208 34 CFR 685.209
Legal Authority: 20 U.S.C. 1078 20 U.S.C. 1087e

Legal Deadline: None

Statement of Need:

The President has issued a memorandum directing the Secretary to propose regulations by June 9, 2015, that will allow additional student borrowers Federal Direct Loans to cap their Federal student loan payments at 10 percent of their income. The memorandum further directed the Secretary to issue final regulations after considering all public comments with the goal of making the repayment option available to borrowers by December 31, 2015.

In addition, the notice of proposed rulemaking will propose the establishment of procedures for Federal Family Education Loan (FFEL) Program loan holders to use the Department of Defense's Defense Manpower Data Center (DDMC) database to identify U.S. military servicemembers who may be eligible for a lower rate on their FFEL Program loans under the Servicemembers Civil Relief Act (SCRA).

Summary of the Legal Basis:

The President directed the Secretary to propose regulations that will allow additional student borrowers Federal Direct Loans to cap their Federal student loan payments at 10 percent of their income.

These final regulations will amend the Student Assistance General Provisions regulations governing Direct Loan cohort default rates (CDRs) to expand the circumstances under which an institution may challenge or appeal the potential consequences of a draft or final CDR based on the institution’s participation rate index (PRI).

Alternatives:

These will be discussed in the final regulations.

Anticipated Costs and Benefits:

These will be discussed in the final regulations.

Risks:

These will be discussed in the final regulations.

Timetable:

Action	Date	FR Cite
Notice of Intent to Establish Negotiated Rulemaking Committee	09/03/2014	79 FR 52273
NPRM	07/09/2015	80 FR 39608
NPRM Comment Period End	08/10/2015
Final Action	11/00/2015

Regulatory Flexibility Analysis Required: No	Government Levels Affected: Federal, Local, State
Federalism: No
Included in the Regulatory Plan: Yes
Public Comment URL: www.regulations.gov
RIN Data Printed in the FR: No
Agency Contact: Barbara Hoblitzell Department of Education Office of Postsecondary Education 400 Maryland Avenue SW., Room 6W252, Washington, DC 20202 Phone:202 453-7583 Email: barbara.hoblitzell@ed.gov