Posted Date:October 23, 2014
| Author: | Lynn B. Mahaffie, Acting Assistant Secretary, Office of Postsecondary Education |
Subject: Final Regulations Strengthening and Improving the William D. Ford Federal Direct PLUS Loan (PLUS Loan) Program
On August 8, 2014, the Secretary published a Notice of Proposed Rulemaking (NPRM) (79 FR 46640) in the Federal Register to strengthen and improve the administration of the PLUS Loan Program. In the NPRM, the Department proposed regulations that would update the standard for determining if a potential parent or student borrower has an adverse credit history for purposes of eligibility for a PLUS Loan. The proposed regulatory changes resulted from agreements reached during negotiated rulemaking sessions held between February and May of 2014.
Today, October 23, 2014, the Secretary published in the Federal Register the final regulations developed after the Department’s review of public comments received in response to the August 8, 2014, NPRM. The final regulations will improve student access to postsecondary education by increasing availability of PLUS loan funds and will help to limit overborrowing by requiring PLUS loan counseling for borrowers who are determined to have an adverse credit history, but who qualify for a PLUS loan due to extenuating circumstances.
We have attached to this Electronic Announcement, in PDF format, a copy of the final regulations that were published in the Federal Register today.
For further information, please contact Brian Smith at Brian.Smith@ed.gov.