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 [www.gpo.gov] [FR Doc No: 2014-25266] =========================================== -------------------------------------------------------------------------- DEPARTMENT OF EDUCATION 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. FOR FURTHER INFORMATION CONTACT: Brian Smith, U.S. Department of Education, 1990 K Street NW., Room 8082, Washington, DC 20006. Telephone (202) 502-7551 or by email: Brian.Smith@ed.gov. 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- 800-877-8339. SUPPLEMENTARY INFORMATION: 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.