**U.S. Department of Education**

**Higher Education Act**

**Student Loan Program Negotiating Committee**

**Meeting Summary**

**February 13-16, 2012**

**Review and Adopt Meeting Summary**

The draft meeting summary from the January 2012 meeting was reviewed and accepted. 

**Review Proposed Meeting Agenda**

The committee members approved the meeting agenda. 

# Membership 

The following Primary and Alternate negotiators were present:

**Workshop-Style Review of Issues**

Committee 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 Forgiveness

--Borrower Access to current ICR (ICR-B) After July 1, 2013

--Annual ICR Income Verification

--Borrower Repayment After Leaving new ICR (ICR-A) 

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 

--Written and Oral Affirmation

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 

-- Use of Current Payment Standard, Use of IBR Formula Payment, or Combined Approach

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

-- Number of Concurrent Voluntary and Involuntary Payments 

-- Amount of Concurrent Payments

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 Borrrowers 

At the conclusion of the discussions, the Committee Members reached tentative agreement on Issues # 3, 4, 5, 7, 10, 19, 20, 21, 22, and 24. 

# Public Comment

# Several opportunities were provided for the public to provide comment.  No comments from the public were received.

# Having concluded its agenda for the second session, the Committee adjourned the session at the close of the day, February 16, 2012.

# Logistics

The third session of the Student Loan Program Negotiating Committee is scheduled for Monday through Friday, March 26-30, 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 St. NW in Washington, D.C.

**Next Steps**

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

**Draft – 3/19/2012**

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