# U.S. Department of Education

# Title IV Loans

# Borrower Defenses

# Meeting Summary

# February 17-19, 2016

## Welcome

Gail McLarnon, the federal negotiator, welcomed Committee members to the second negotiated rulemaking session. 

## Discussion with the Special Master

Joseph A. Smith, Jr., Special Master for Borrower Defense, U.S. Department of Education, answered Committee members’ questions about the process he and his team are using to assess loan discharge claims.  Mr. Smith attended in response to the Committee’s request for an opportunity to learn more about his work.

## Review Agenda 

Susan Podziba, one of the facilitators, reviewed the meeting agenda. It was adopted with no changes.

## Review of Meeting Summary for Session One

The meeting summary was approved with two minor changes.

## Finalize Scope of Issues to be Negotiated

The Committee finalized its scope of issues to be negotiated. It is composed of the following: 

Issue 1, 2, 3:  Borrower Defense Federal Standard, Process, and Statute of Limitations

Issue 4:  False Certification

Issue 5:  Financial Responsibility

Issue 6:  Electronic Death Certificates

Issue 7:  Nurse Faculty Loan Consolidation

Issue 8:  Interest Capitalization

Issue 9:  REPAYE

Issue 10: Compromise Authority

Issue 11: Closed School Discharge

## Discuss Issues and Proposed Regulatory Language

The Committee discussed and reviewed draft regulatory language for each issue (except Issue 10: Compromise Authority) in great detail. Multiple alternative proposals were offered and considered.  Tentative agreements were reached on Issue 7: Nurse Faculty Loan Consolidation and Issue 8: Interest Capitalization. The Department will prepare revised regulatory language for the other nine issues.

# Public Comment

# Opportunities were provided at the end of each meeting day for members of the public in attendance to provide comments.  Numerous public comments were made on the first day of the meeting.

# Next Meeting

# The next Committee session will be held on March 16-18, 2016 at the U.S. Department of Education, Union Center Plaza Learning Center, 830 First Street, N.E., Lobby Level, in Washington, D.C.  Sessions will begin at 9:00 a.m. and conclude at 5:00 p.m. each day.

## Next Steps

The facilitators will distribute the approved summary of meeting one, a draft summary of meeting two, and a draft agenda for meeting three.  The Department will distribute revised draft regulatory text for all issues one week prior to the next meeting.  Committee members will continue to communicate with others within their communities of interest to inform and get feedback from them.  Nonfederal negotiators may provide proposals for the Department’s internal consideration. Information and proposals that Committee members want to share with the Department should be sent to the facilitators for distribution to the entire Committee. 

## Members Present

Non-Federal Members

Ann Bowers

Dennis Cariello

Eileen Connor

Chris DeLuca

Alyssa Dobson

Bernard Eskandari

Mike Firestone

Wanda Hall

Will Hubbard

Angela Johnson

Emily London Jones

Mark Justice

Darin Katzberg

Kay Lewis

Chris Lindstrom

Betsy Mayotte

Michale McComis

Christine McGuire

Walter Ochinko

Sharon Oliver

Jean McDonald Rash

Margaret Reiter

Shannon Sheaff

David Sheridan

Karen Solinski

Becky Thompson

Maggie Thompson

Noah Zinner

Federal Members

Gail McLarnon

Fred Marinucci

Facilitators

Susan Podziba

Jacqueline Wilson

PAGE  

U.S. Department of Education, Borrower Defenses Negotiated Rulemaking

1

Summary of Meeting Two – February 17-19, 2016

Approved 3/16/16