Federal Updates

Gearing up for another round of negotiated rulemaking

In Monday's Federal Register, available at http://a257.g.akamaitech.net/7/257/2422/01jan20071800/edocket.access.gpo.gov/2007/pdf/E7-20785.pdf, ED announced its intention to establish "one or two" negotiated rulemaking (Neg Reg) committees which will consider a wide array of topics:

• The new TEACH Grant program (established by the College Cost Reduction and Access Act of 2007, or CCRAA)
• Changes needed for the FFEL and Direct Loan Programs resulting from the enactment of the CCRAA including, but not limited to:
  • rules for income-based repayment;
  • changes to the maximum repayment period;
  • reductions to the lender insurance rates;
  • loan forgiveness for public service employees; and
  • definitions of terms used in the programs.

Negotiators will also discuss changes necessary due to the passage of H.R. 3625, which made permanent the Higher Education Relief Opportunities for Students Act of 2003 (HEROES Act), and the establishment of competitive preference priorities within the Gaining Early Awareness and Readiness for Undergraduate Programs (GEAR UP) program.

The committees may also consider issues raised by the public during the regional hearings that will precede the negotiating sessions and "other issues the Department identifies as necessary to improve program administration and accountability...including potential Federal preemption of State laws that may conflict with the Department's regulations on improper inducements and the use of preferred lender lists in the FFEL program."

ED also notes that, "if reauthorization of the HEA is completed prior to the first negotiating session, we may also include on the negotiating agenda additional changes to the regulations that may be needed."

Committee structure
If one negotiating committee is established, it will address all of the regulatory issues identified by ED. If two negotiating committees are established, one negotiating committee will address issues related to the federal student loan programs and the other committee will focus on TEACH Grants and other issues.

How to get involved
Don't miss your chance to provide input to ED! ED will hold three regional hearings in November for interested parties to discuss the agenda for the Neg Reg sessions and will also accept written comments.

ED is also calling for nominees to be negotiators. Negotiators represent the various constituencies that will be affected by the regulations. Because the number of negotiators is limited, ED expects negotiators to represent broad-based constituencies to the extent possible.

The negotiations will likely occur in three meetings beginning in January 2008 and ending no later than April 2008. The first meeting typically involves organizational decision making and identification of the scope of the topics to be negotiated.

More information
For more information on this Neg Reg notice, click on the link provided above or contact TG customer assistance at (800) 845-6267, or send an e-mail message to cust.assist@tgslc.org.

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