**U.S. Department of Education**

**Higher Education Act**

**Student Loan Program Negotiating Committee**

**Meeting Summary**

**January 9-12, 2012**

**Welcome**

David Bergeron welcomed the members of the Student Loan Program Negotiating Committee

and thanked them for agreeing to assist the Department in developing proposed student financial assistance regulations pursuant to Sec. 492 of the Higher Education Act of 1965, as amended (HEA).

**Introductions**

All members who were present introduced themselves. 

**Overview of the Negotiated Rulemaking Process**

The facilitators provided an overview of the negotiated rulemaking process. They explained that the committee’s discussions will focus on developing consensus regulatory text for the Department’s proposed rule on student financial assistance regulations. 

**Review and Adopt Minutes**

This was the initial meeting of this negotiating committee, so there were no minutes from a previous meeting. 

# Organizational Protocols and Membership 

The members discussed the draft Organizational Protocols, and approved them.  The membership of the committee was presented.  Additions to the committee and Alternates to Primary members were proposed, discussed, and agreed to or not agreed to.  

The following Primary and Alternate negotiators were proposed and accepted.

**Review Negotiating Agenda of Issues**

The committee reviewed and discussed the list of agenda items proposed by the Department.  The Agenda of Issues proposed by the Department was accepted, with the addition of three issues  (Items # 23-25 of the full approved agenda of issues -see below). 

**Workshop-Style Review of Issues**

Team members participated in discussions on each item of the Agenda of Issues listed below:

1. Changes to Income Contingent Repayment (ICR) Plan 

--Process for Receipt of Cancellation 

2. Changes to Income-Based (IBR) Repayment Plan 

--New Borrower Notification for Annual IBR Evaluation 

--Annual IBR Income Verification 

--Borrower Repayment After Leaving IBR 

--Process for Receipt of Forgiveness 

3. FFEL Repayment Disclosures: Borrowers Who Are Having Difficulty Making Payments and Borrowers Who Are 60-Days Delinquent 

4. Forbearance Provisions for Borrowers Receiving Department of Defense Student Loan Repayment Benefits 

5. Borrowers Who Are Delinquent when Authorized Forbearance is Granted 

6. Forbearance for Post 270-Day Defaulted Loan Borrowers Prior to Lender Claim Payment or Transfer to ED Default Collections 

7. Minimum Loan Period for Transfer Students in Non-Term and Certain Non-Standard Term Programs 

8. “Reasonable and Affordable” Payment Standard for Rehabilitation of Defaulted Direct Loans and FFEL Program Loans 

9. Rehabilitation of Defaulted Direct Loan and FFEL Program Loans Treatment of Borrowers Subject to Administrative Wage Garnishment 

10. Participation Rate Index Appeal for Single Cohort Default Rate Loss of Eligibility to Participate in the Direct Loan Program 

11. Repeal of Unnecessary FFEL Program Regulations 

12. Modification of Direct Loan Program Regulations 

13. Total and Permanent Disability Discharge – Single Application Process 

14. Total and Permanent Disability Discharge – Borrower Notification of Denial 

15. Total and Permanent Disability Discharge – Post-Discharge Monitoring of Employment Earnings 

16. Title IV Closed School Loan Discharge 

17. Satisfactory Repayment Arrangements on Defaulted Title IV Loans for Borrowers who also Rehabilitate the Loan 

18. School Enrollment Status Reporting Requirements 

19. Federal Perkins Loan Graduate Fellowship Deferment Eligibility 

20. Social Security Number Requirement for Assignment of Federal Perkins Loans to Department of Education 

21. Federal Perkins Loan Cancellation Rate Progression Across Cancellation Categories 

22. Federal Perkins Loan Economic Hardship deferment Debt-to-Income Ratio Provision 

23. Federal Perkins Loan Break in Cancellation Service Due to Condition Covered Under the Family and Medical Leave Act (20 U.S.C. 2601 et.seq.) 

24. Standard for On-Time Rehabilitation Payments in the Federal Perkins Loan Program 

25. FFEL Program Administrative Wage Garnishment (AWG) Hearings for Defaulted Borrowers 

# Public Comment

# Several opportunities were provided for the public to provide comment.  Comments from the public were received at the end of the second and fourth days.

# Logistics

# The second session of the Student Loan Program Negotiating Committee is scheduled for Monday through Friday, February 13-17, 2012, with the following schedule:

# Monday:  12:00 pm – 5:00 pm

# Tuesday to Thursday:  9:00 am – 5:00 pm

# Friday:  9:00 am – 12:00 pm

# The session will be held at the U.S. Department of Education in the 8th Floor Conference Center located at 1990 K Street, N.W. in Washington, D.C.

**Next Steps**

Prior to the next meeting, the Department will provide the draft Agenda for the second meeting and draft regulatory text for the agenda of issues to the committee that reflects the workshop discussions of the first session.  The facilitators will distribute the approved Contact List and Draft Meeting Summary of the first meeting.

**Draft – 2/3/2012**

5