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Subject: Direct PLUS Loans - Final Regulations

Publication Date: October 23, 2014

Posted Date: October 23, 2014

Subject: Direct PLUS Loans - Final Regulations

FR Type: Final

Effective Date: July 1, 2015

[Federal Register Volume 79, Number 205 (Thursday, October 23, 2014)]
[Rules and Regulations]
[Pages 63317-63332]
From the Federal Register Online via the Government Printing Office []
[FR Doc No: 2014-25266]



34 CFR Part 685

RIN 1840-AD17
[Docket ID ED-2014-OPE-0082]

William D. Ford Federal Direct Loan Program

AGENCY: Office of Postsecondary Education, Department of Education.

ACTION: Final regulations.


SUMMARY: The Secretary amends the regulations governing the William D. 
Ford Federal Direct Loan (Direct Loan) Program. These regulations 
strengthen and improve administration of the Federal Direct PLUS Loan 
Program authorized under title IV of the Higher Education Act of 1965, 
as amended (HEA).

DATES: These regulations are effective July 1, 2015. Implementation 
date: For the implementation date, see the Implementation Date of These 
Regulations section of this document.

Education, 1990 K Street NW., Room 8082, Washington, DC 20006. 
Telephone (202) 502-7551 or by email:
    If you use a telecommunications device for the deaf (TDD) or a text 
telephone (TTY), call the Federal Relay Service (FRS), toll free, at 1-

    Executive Summary: Purpose of This Regulatory Action: We are 
amending Sec.  685.200 of title 34 of the Code of Federal Regulations 
(CFR) to update the standard for determining if a potential parent or 
student borrower has an adverse credit history for purposes of 
eligibility for a Direct PLUS Loan (PLUS loan). Specifically, the final 
regulations will revise the definition of ``adverse credit history'' 
and require that parents and students who have an adverse credit 
history but who are approved for a PLUS loan on the basis that 
extenuating circumstances exist or who obtain an endorser for the PLUS 
loan must receive loan counseling before receiving the loan. The 
current regulations governing adverse credit history determinations 
have not been updated since the Direct Loan Program was established in 
1994. The final regulations will reflect programmatic and economic 
changes that have occurred since 1994.

Last Modified: 10/22/2014