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ED/OPE

RIN: 1840-AD26

Publication ID: Fall 2018

Title: Institutional Accountability
Abstract: The Secretary plans to establish new regulations governing the William D. Ford Federal Direct Loan (Direct Loan) Program regarding the standard and the process for determining whether a borrower has a defense to repayment on a loan based on an act or omission of a school. We also may amend other sections of the Direct Loan Program regulations, including those that codify our current policy regarding the impact that discharges have on the 150 percent Direct Subsidized Loan Limit; and the Student Assistance General Provisions regulations providing the financial responsibility standards and disclosure requirements for schools. In addition, we may amend the discharge provisions in the Federal Perkins Loan, Direct Loan and Federal Family Education Loan program regulations.
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
EO 13771 Designation: Other
CFR Citation: 34 CFR 668 34 CFR 674 34 CFR 682 34 CFR 685 and other sections as applicable (To search for a specific CFR, visit the Code of Federal Regulations.)
Legal Authority: 20 U.S.C. 1082(a)(5), (a)(6) 20 U.S.C.1087(a) 20 U.S.C. 1087e(h) 20 U.S.C. 1221e-3 20 U.S.C. 1226a-1 20 U.S.C. 1234(a) 31 U.S.C. 3711

Legal Deadline: None

Statement of Need:

The Secretary initiated negotiated rulemaking to revise current regulations governing borrower defenses to loan repayment.

Summary of the Legal Basis:

Section 492 of the HEA requires that, before publishing any proposed regulations to implement programs authorized under title IV of the HEA, the Secretary obtain public involvement in the development of the proposed regulations. After obtaining advice and recommendations from the public, the Secretary conducts negotiated rulemaking to develop the proposed regulations. Section 431 of the Department of Education Organization Act provides authority to the Secretary, in relevant part, to inform the public regarding federally supported education programs; and collect data and information on applicable programs for the purpose of obtaining objective measurements of the effectiveness of such programs in achieving the intended purposes of such programs. 20 U.S.C. 1231a.

Alternatives:

These are identified through the negotiated rulemaking process and presented in the Notice of Proposed Rulemaking.

Anticipated Costs and Benefits:

These are identified through the negotiated rulemaking process and presented in the Notice of Proposed Rulemaking.

Risks:

These are identified through the negotiated rulemaking process and presented in the Notice of Proposed Rulemaking.

Timetable:

Action	Date	FR Cite
Notice of Intention to Commence Negotiated Rulemaking	06/16/2017	82 FR 27640
NPRM	07/31/2018	83 FR 37242
NPRM Comment Period End	08/30/2018
Final Action	01/00/2019

Regulatory Flexibility Analysis Required: Undetermined	Government Levels Affected: Federal, Local, State
Small Entities Affected: Businesses, Governmental Jurisdictions	Federalism: No
Included in the Regulatory Plan: Yes
RIN Information URL: www.regulations.gov	Public Comment URL: www.regulations.gov
RIN Data Printed in the FR: No
Agency Contact: Sarah Beaton Department of Education Office of Postsecondary Education 400 Maryland Avenue SW, Room LBJ 2C-244, Washington, DC 20202 Phone:202 453-7222 Email: sarah.beaton@ed.gov