U.S. Department of Education 

Borrower Defenses and Financial 

Responsibility

Negotiated 

Rulemaking

Meeting 

Summary 

January 8-11, 

2018

Welcome

Annmarie Weisman, the federal negotiator, welcomed Borrower Defenses 

Negotiated Rulemaking Committee (“Committee”) members to the second 

negotiated rulemaking session.

Update on Existing Department of Education Borrower Defense Claims

James Manning, acting Undersecretary of Education, provided an update on 

the status of existing Borrower Defense claims.

Introductions

Committee members and facilitators introduced themselves.

Review of Agenda and Session One Meeting Summary

The Committee reviewed and accepted the session agenda with one 

adjustment; the Subcommittee Report was moved to the afternoon of the 

first day with a period for questions on day four. Additionally, the Committee 

reviewed and accepted without changes the meeting summary of Session 

One prepared by the facilitators.

Data Requests

Annmarie Weisman discussed the status of pending requests for data made 

by Committee members. The Department of Education (“Department”) 

continues to receive and process data requests from Committee members. 

The facilitators or the Department will distribute processed data requests as 

it becomes available. Data distributed during this session included:

•Borrower Defense Claims Data Analysis

•Data Sheet A: Loan Discharge Liabilities

•Data Sheet B: Consolidated Loans linked to BD Claims

•Data Sheet C: Estimated Interest Accrued

•Data Sheet D: Loan Status at Time of Claim

•Data Sheet E: School Type and Level

•Data Sheet F: Loan Forbearance

Discussion of the Issues and Proposed Regulatory Language

The Committee discussed and reviewed draft regulatory language for the 
following issues:

 Issue 1: Federal Standard for Borrower Defense Claims

 Issue 2: Borrower Defense Claim Process

 Issue 3: Financial Responsibility and Administrative Capability

 Issue 4: Pre-dispute Arbitration Agreements, Class Action Waivers, 

and Internal Dispute Processes

 Issue 5: Closed School Discharge 

 Issue 6: False Certification Discharge

 Issue 7: Guaranty Agency Collection Fees

 Issue 8: Recalculation of Subsidized Usage Period

Throughout the discussion, the committee discussed the Department’s 

language for each issue presenting, considering, and negotiating alternative 

proposals. The Committee reached tentative agreements on the draft 

language as presented by the Department for Issue 7: Guaranty Agency 

Collection Fees and Issue 8: Recalculation of Subsidized Usage Period. The 

Department will review the comments made during the discussion and 

prepare revised regulatory language for the other six issues.

Report of the Financial Responsibility Subcommittee

Members of the Financial Responsibility Subcommittee presented a report of 

their findings on Monday, January 8, 2017. On Thursday the 11th, after 

providing the Committee time to review the report, the Subcommittee 

returned to answer Committee questions and listen to negotiator feedback. 

Public Comment:

The Committee heard comments from the public each day of the session. 

Next Meeting:

February 12-15, 2018

LBJ Building – Barnard Auditorium

400 Maryland Ave, SW

Washington, DC

Next Steps

The facilitators will distribute a draft summary of the second meeting and a draft 

agenda for the next meeting. In addition, the Department will revise and 

distribute draft regulatory text related to the issues negotiated and proposals 

submitted prior to the next negotiation. Information and proposals that 

Committee members want to share with the Department should be sent to the 

facilitators for distribution to the entire Committee. Committee members will 

continue to communicate with others within their communities of interest to 

inform and get feedback from them. Any questions may be directed to the 

facilitators. 
Members Present:

Aaron Lacey

Abby Shafroth

Alyssa Dobson

Annmarie Weisman

Ashley Ann Reich

Ashley Harrington

Bryan Black

Chris DeLuca

Colleen Slattery

Dan Madzelan

Dawn Robinson

Evan Daniels

Gregory Jones

Jaye O’Connell

Joseline Garcia

Juliana Fredman

Kay Lewis

Kelli Hudson Perry

Kimberly Brown

Linda Rawles

Lodriguez Murray

Michael Bottrill

Michael McComis

Mike Busada

Robert E. Anderson

Sheldon Repp

Stevaughn Bush

Suzanne Martindale

Valerie Sharp

Walter Ochinko

Wanda Hall

William Hubbard