DCLPublicationDate: 3/1/96 DCLID: 96-L-186 AwardYear: Summary: Clarification and interpretative guidance on certain provisions in the Federal Family Education Loan (FFEL) Program regulations published on December 18, 1992. March 1996 96-L-186 96-G-287 SUBJECT: Clarification and interpretative guidance on certain provisions in the Federal Family Education Loan (FFEL) Program regulations published on December 18, 1992. REFERENCE: December 18, 1992 Federal Family Education Loan Program regulations and May 17, 1994 technical corrections to those regulations. Dear Colleague: On July 23, 1992, the Higher Education Amendments of 1992 (Amendments) to the Higher Education Act were enacted. Later that year, on December 18, 1992, the U.S. Department of Education (ED) published final regulations for the Federal Family Education Loan (FFEL) Program that incorporated changes made by the following statutes: - The Consolidated Omnibus Budget Reconciliation Act of 1985 - The Higher Education Amendments of 1986 - The Higher Education Technical Amendments Act of 1987 - Public Law 100-297 - Public Law 100-369 - The Omnibus Budget Reconciliation Act of 1989 - The Omnibus Budget Reconciliation Act of 1990 - The National and Community Service Act of 1990 - The Higher Education Technical Amendments of 1991 - The Emergency Unemployment Compensation Act of 1991 - Selected self-implementing provisions of the Higher Education Amendments of 1992 Because of the statutory requirement that the majority of the FFEL provisions of the 1992 Amendments be regulated under negotiated rulemaking and the timing involved in publishing the December 18, 1992 regulations, not all the provisions of the 1992 Amendments could be incorporated into the regulatory package. In cases where provisions of the Amendments conflicted with the December 18, 1992 regulations, the Amendments superseded the regulations. The regulations published on December 18, 1992 generally were to take effect on February 1, 1993. However, in response to inquires from the student aid community, on January 29, 1993, Secretary Richard W. Riley issued a letter advising FFEL Program participants that he had decided to delay full enforcement of certain provisions of the December 18, 1992 regulations. Doing so, the Secretary explained, would allow ED to issue guidance identifying sections of the December 18, 1992 regulations that had been superseded by the Amendments and clarifying provisions of the regulations that reflected policy changes. Secretary Riley also stated that FFEL Program participants were expected to make a good-faith effort to begin implementing the December 18, 1992 regulations when they went into effect on February 1, 1993, including implementing the provisions on which he was delaying enforcement. The Secretary's enforcement delay did not apply to the self-implementing statutory requirements contained in the regulations or to regulatory provisions that were unchanged from earlier FFEL regulations. Since Secretary Riley's letter in January 1993, ED has undertaken a number of initiatives to address issues FFEL Program participants raised about the regulations. In March and April 1993, ED met with community representatives to identify and discuss the outstanding issues that the representatives believed should be clarified. Also since the January 1993 letter, the Secretary, following several negotiated rulemaking sessions, has published a series of regulatory amendments. These incorporate Amendments previously not reflected in the December 18, 1992 regulations, as well as changes enacted by later legislation. These FFEL Program amendatory regulations were published in the Federal Register on: - April 29, 1994 - June 28, 1994 - June 29, 1994 - November 25, 1994 - November 29, 1994 - November 30, 1994 - December 1, 1995 The Secretary's delay of enforcement of certain parts of the December 18, 1992 regulations did not change the effective date of these regulations or other regulations that affect the FFEL program. On May 17, 1994, the Department also published technical corrections to the December 18, 1992 regulations. The purpose of this" Dear Colleague" letter is to provide guidance only on those regulatory provisions of the December 18, 1992 final regulations that still require clarification and that have not been superseded by later statutory or regulatory changes currently in effect. It does not address issues pertaining to regulations published after the December 18, 1992 regulations. The letter is divided into two sections: - Section I includes a series of questions and answers intended to clarify policy changes within the December 18, 1992 final regulations. - Section II addresses the time frames for fully implementing and enforcing those provisions of the December 18, 1992 regulations that required guidance. ED would like to recognize the support and cooperation of the FFEL program participants who assisted in the development of this guidance. If you have questions about this letter, please contact Ms. Pamela Moran (Loan Branch Chief), Ms. Patricia Newcombe (FFEL Program Loans Branch Section Chief), or Ms. Patsy Beavan (Senior Program Specialist) at (202) 708-8242 or by fax at (202) 708-7196. Sincerely, Elizabeth M. Hicks Deputy Assistant Secretary for Student Financial Assistance Attachment A Attachment B Attachment C Attachment D Attachment E |