From: Jessica Ranucci, Primary Negotiator for Consumer Advocates

To: U.S. Department of Education 

Re: Proposed Regulatory Text Amendments 

Date: December 11, 2023 

Proposal 1— Proposed Regulatory Text for §§ 30.81, 30.82, 30.89, 30.90: This regulatory text 

eliminates the cap on waiver of the amount by which the borrower’s total loan balance exceeds 

their original principal balance. With this edit, the various proposals in §§ 30.81, 30.82, 30.89, 

and 30.90 can be combined into one provision. 

§ 30.81 Waiver when the current balance exceeds the original 

principal balance. for low-income borrowers on an IDR plan. (a) 

Pursuant to the authority to waive debt that the Secretary is 

unable to collect in full under the standards prescribed in 31 

U.S.C. 3711(d), and subject to paragraphs (b) and (c) of this 

section, t The Secretary may waive the lesser of $20,000 or the 

amount by which a borrower’s loans cumulatively have a total 

outstanding balance that exceeds— 

(1) The original principal balance of the loans for loans disbursed 

before January 1, 2005; 

(2) The balance of the loans on the final day of their grace period 

for loans disbursed on or after January 1, 2005; or 

(3) The total original principal balance of all loans repaid by a 

Federal Consolidation Loan or a Direct Consolidation Loan. 

(b) A borrower is eligible for the waiver described in paragraph 

(a) of this section if- 

(1) The borrower is enrolled in an IDR plan under §§ 682.215, 

685.209, or 685.221 as of a date determined by the Secretary; and 

(2) The borrower’s adjusted gross income or other documentation of 

income acceptable to the Secretary demonstrates that the borrower’s 

annual income is equal to or less than 225 percent of the 

applicable Federal Poverty Guideline as described in § 685.209.

(c) A borrower who has received a waiver under § 30.82 is not 

eligible for a waiver under paragraph (a) of this section.
§ 30.82 [Reserved]

§ 30.89 [Reserved]

§ 30.90 [Reserved]

Proposal 2— Proposed Regulatory Text for § 30.83: This proposal would reduce the problem 

of a regulatory “cliff” by applying this relief in the future on a rolling basis with respect to all 

loans disbursed before the regulations go into effect. It would also provide relief in the shorter 

term to borrowers with 

§ 30.83 Waiver when a loan first entered repayment 20 or 25 years 

ago. (a) The Secretary may waive the outstanding balance of a loan 

if:

(i) the loan first entered repayment on or before July 1, 2005at 

least 20 years before the date of the waiver;, and

(ii) the borrower only received loans as an undergraduate student 

or a Federal Consolidation Loan or Direct Consolidation Loan that 

repaid only loans the borrower received as an undergraduate 

student; and

(iii) the loan was disbursed before July 1, 2025. 

(b) The Secretary may waive the outstanding balance of a loan if:

(i) the loan first entered repayment on or before July 1, 2000at 

least 25 years before the date of the waiver;, and

(ii) the borrower received loans other than loans received as an 

undergraduate student or a Federal Consolidation Loan or Direct 

Consolidation Loan that repaid loans other than loans the borrower 

received as an undergraduate student; and

(iii) the loan was disbursed before July 1, 2025. 

(c) For the purpose of this section, a loan enters repayment on— 

(1) For a Federal Stafford Loan, a Direct Subsidized Loan, or a 

Direct Unsubsidized Loan, the day after the initial grace period 

ends; 

(2) For a Federal PLUS Loan or a Direct PLUS Loan, the day the loan 

is fully disbursed; or 

(3) For a Federal Consolidation Loan or Direct Consolidation Loan, 

the earliest day as determined under paragraph (c)(1) and (2) of 
this section for any loan that was repaid by that consolidation 

loan. 

Proposal 3— Proposed Regulatory Text for §§ 30.86 and 30.87: This would clarify that loss of 

accreditation resulting in loss of Title IV eligibility can be a basis for waiver so long as the loss 

of accreditation meets the standards set by this section. This would also allow the Secretary the 

discretion to issue this relief upon the Department’s termination, denial of recertification, or 

determination. 

§ 30.86 Waiver based upon Secretarial actions. (a) Subject to 

paragraph (b) of this section, the Secretary may waive the entire 

outstanding balance of a loan associated with attending an 

institution or a program at an institution if the Secretary or 

other authorized Department official has issued a final decision 

that terminated the institution or program’s participation in the 

title IV, HEA programs or denied the institution’s request for 

recertification, or the Secretary or other authorized Department 

official has otherwise determined that the institution or the 

program in which the student was enrolled is no longer eligible for 

its students to receive assistance under the title IV, HEA programs 

and that decision, denial, or determination was due, in whole or in 

part, to any of the following circumstances: 

(1) The program or institution has failed to meet an accountability 

standard based on student outcomes established under the HEA or its 

implementing regulations for determining eligibility for 

participation in the title IV, HEA programs. 

(2) The program or institution has failed to deliver sufficient 

financial value to students, including in situations where the 

institution or program has engaged in substantial 

misrepresentations, substantial omissions, misconduct affecting 

student eligibility, or other similar activities, including loss of 

accreditation due to such activities. 

(b) The waiver described in paragraph (a) of this section is 

limited to loans that were borrowed to attend that program or 

institution during the period that corresponds with the findings or 

outcomes data that forms the basis for the action described in 

paragraph (a) of this section, unless the Secretary determines that 

the use of a different period is appropriate.

§ 30.87 Waiver following a closure prior to Secretarial actions. 

(a) Subject to paragraph (b) of this section, the Secretary may 

waive the entire outstanding balance of a loan associated with 

attending a program or institution if the program or institution 

has closed and the Secretary or other authorized Department 

official has made a final determination that— 
[. . . . rest of regulation remains the same]

Proposal 4— Proposed Regulatory Text for § 682.403: This would change the title of this 

regulation to clarify that it applies only to FFEL Program debt that is not held by the Department, 

in order to clarify that Department-held FFEL loans are covered by the provisions in Subpart G. 

It also makes conforming changes to the 20/25 year old provision that are the same as proposed 

above in § 30.83. 

§ 682.403 Waiver of FFEL Program loan debt for FFEL loans not held 

by the Department. 

(a) General.

(1) This section specifies the rules and procedures under which--

(i) The Secretary determines that a FFEL Program loan qualifies for 

a waiver of all or a portion of the outstanding balance and 

notifies the lender of any such determination;

(ii) The lender submits a waiver claim to the applicable guaranty 

agency;

(iii) The guaranty agency pays the claim, is reimbursed by the 

Secretary, and assigns the loan to the Secretary; and

(iv) The Secretary grants the waiver.

(2) For the purposes of this section, references to— 

(i) “The lender” includes the guaranty agency if the guaranty 

agency is the holder of the loan at the time the Secretary 

determines that the loan qualifies for a waiver, except that the 

waiver claim filing requirements applicable to the lender do not 

apply to the guaranty agency; and

(ii) “The guaranty agency” means the guaranty agency that 

guarantees the loan.

(b) Determination of qualification for a waiver by the Secretary. 

The Secretary may waive the borrower’s obligation to repay up to 

the entire outstanding balance on an FFEL Program loan if the loan 

qualifies for a waiver under one of the following conditions:

(1) First entered repayment 20 or 25 years ago. 

(i) The Secretary may waive the outstanding balance of a loan if: 

(A) the loan first entered repayment at least 20 years before the 

date of the waiver; 

(B) the borrower only received loans as an undergraduate student or 

a Federal Consolidation Loan or Direct Consolidation Loan that 
repaid only loans the borrower received as an undergraduate 

student; and 

(C) the loan was disbursed before July 1, 2025. 

(ii) The Secretary may waive the outstanding balance of a loan if: 

(A) the loan first entered repayment at least 25 years before the 

date of the waiver; 

(B) the borrower received loans other than loans received as an 

undergraduate student or a Federal Consolidation Loan or Direct 

Consolidation Loan that repaid loans other than loans the borrower 

received as an undergraduate student; and

(C) the loan was disbursed before July 1, 2025. 

(i) The Secretary may waive the outstanding balance of a loan if 

the loan first entered repayment on or before July 1, 2005, and the

borrower only received loans as an undergraduate student or a 

Federal Consolidation Loan or Direct Consolidation Loan that repaid 

only loans the borrower received as an undergraduate student.

(ii) The Secretary may waive the outstanding balance of a loan if 

the loan first entered repayment on or before July 1, 2000, and the 

borrower received loans other than loans received as an 

undergraduate student or a Federal Consolidation Loan or Direct 

Consolidation Loan that repaid loans other than loans the borrower 

received as an undergraduate student.

(iii) For the purpose of this section, a loan enters repayment on— 

(A) For a Federal Stafford Loan, the day after the initial grace 

period ends;

(B) For a Federal PLUS Loan, the day the loan is fully disbursed; 

or

(C) For a Federal Consolidation Loan, the earliest day as 

determined under paragraph (iii)(A) and (B) of this section for any 

loan that was repaid by that consolidation loan.

[. . . . rest of regulation remains the same]

Proposal 5— Proposed Regulatory Text for New § 30.92: This would clarify that if a borrower 

would be eligible for any waiver action but for missing Department or servicer data, the 

Secretary may include such a borrower in waiver relief.

§ 30.92 Waiver under circumstances where borrower data is missing. 

The Secretary may waive up to the outstanding balance of a loan 

where the Secretary determines that record keeping by the 

Department or by any entity awarded a contract by the Secretary 
under 20 U.S.C. 1087f is insufficient for the Secretary to 

determine whether the borrower would qualify for waiver under §§ 

30.80-90 or § 682.403.