Federal Register / Vol. 83, No. 139 / Thursday, July 19, 2018 / Rules and Regulations 34047 

TABLE

Swim Across America Safety Zone 33 CFR 165.160 (3.1) ..................... • Location: Participants will swim between Glenn Cove and 

Larchmont, New York and an area of Hempstead Harbor between 

Glen Cove and the vicinity of Umbrella Point. This Safety Zone includes all waters within a 100-yard radius of each participating swimmer. 

• Date: July 28, 2018. 

• Time: 5:30 a.m.–12:00 p.m. 

Under the provisions of 33 CFR 

165.160, vessels may not enter the safety 

zone unless given permission from the 

COTP or a designated representative. 

Spectator vessels may transit outside the 

safety zones but may not anchor, block, 

loiter in, or impede the transit of other 

vessels. The Coast Guard may be 

assisted by other Federal, State, or local 

law enforcement agencies in enforcing 

this regulation. 

This document is issued under 

authority of 33 CFR 165.160(a) and 5 

U.S.C. 552(a). In addition to this notice 

of enforcement in the Federal Register, 

the Coast Guard will provide mariners 

with advanced notification of 

enforcement periods via the Local 

Notice to Mariners and marine 

information broadcasts. 

If the COTP determines that a safety 

zone need not be enforced for the full 

duration stated in this document, a 

Broadcast Notice to Mariners may be 

used to grant general permission to 

enter the safety zone. 

Dated: June 28, 2018. 

J.P. Tama, 

Captain, U.S. Coast Guard, Captain of the 

Port New York. 

[FR Doc. 2018–15441 Filed 7–18–18; 8:45 am] 

BILLING CODE 9110–04–P 

DEPARTMENT OF EDUCATION 

34 CFR Part 685 

[Docket ID ED–2017–OPE–0112] 

RIN 1840–AD28 

Student Assistance General 

Provisions, Federal Perkins Loan 

Program, Federal Family Education 

Loan Program, William D. Ford Federal 

Direct Loan Program, and Teacher 

Education Assistance for College and 

Higher Education Grant Program; 

Corrections 

AGENCY: Office of Postsecondary 

Education, Department of Education. 

ACTION: Final rule; correcting 

amendments. 

SUMMARY: In the Federal Register of 

February 14, 2018, the Department of 

Education (Department) published a 

final rule (the delay rule) delaying, until 

July 1, 2019, the effective date of 

selected provisions of the final 

regulations entitled Student Assistance 

General Provisions, Federal Perkins 

Loan Program, Federal Family 

Education Loan Program, William D. 

Ford Federal Direct Loan Program, and 

Teacher Education Assistance for 

College and Higher Education Grant 

Program (the 2016 final regulations), 

published in the Federal Register on 

November 1, 2016. This rule 

inadvertently omitted regulations from 

the list in the DATES section of 

regulations for which the effective date 

is delayed. This document removes the 

regulations that we intended to delay 

from the text of the Code of Federal 

Regulations and specifies July 1, 2019 as 

their effective date. 

DATES: This rule is effective July 19, 

2018 except for amendatory instruction 

3 which is effective July 1, 2019. 

FOR FURTHER INFORMATION CONTACT: 

Annmarie Weisman, U.S. Department of 

Education, 400 Maryland Avenue SW, 

Mail Stop 294–20, Washington, DC 

20202–6244. Telephone: (202) 453– 

6712. Email: annmarie.weisman@

ed.gov. 

If you use a telecommunications 

device for the deaf or a text telephone, 

call the Federal Relay Service, toll free, 

at 1–800–877–8339. 

SUPPLEMENTARY INFORMATION: In the 

delay rule (83 FR 6458), the list of 

regulations in the DATES section in the 

first column on page 6459, for which the 

effective date is delayed until July 1, 

2019, inadvertently excluded 

§ 685.300(b)(11), (b)(12), and (d) through 

(i). Those regulations were properly 

included in the list of regulations for 

which the effective date is delayed in 

the body of the document (in the third 

column of page 6459) and discussed 

elsewhere in the document. However, to 

effectuate this correction and restore the 

Code of Federal Regulations to properly 

reflect the delay, we are publishing 

amendatory language that will remove 

these provisions. 

Waiver of Proposed Rulemaking 

In accordance with the 

Administrative Procedure Act, 5 U.S.C. 

553, it is the Secretary’s practice to offer 

interested parties the opportunity to 

comment on proposed regulations. 

However, the actions in this document 

are merely to correct a technical error, 

and thus, the Secretary has determined 

that publication of a proposed rule is 

unnecessary under 5 U.S.C. 553(b)(B). 

Accessible Format: Individuals with 

disabilities can obtain this document in 

an accessible format (e.g., braille, large 

print, audiotape, or compact disc) on 

request to the contact person listed 

under FOR FURTHER INFORMATION

CONTACT. 

Electronic Access to This Document: 

The official version of this document is 

the document published in the Federal 

Register. You may access the official 

edition of the Federal Register and the 

Code of Federal Regulations via the 

Federal Digital System at: www.gpo.gov/ 

fdsys. At this site you can view this 

document, as well as all other 

documents of this Department 

published in the Federal Register, in 

text or Portable Document Format 

(PDF). To use PDF you must have 

Adobe Acrobat Reader, which is 

available free at the site. 

You may also access documents of the 

Department published in the Federal 

Register by using the article search 

feature at: www.federalregister.gov. 

Specifically, through the advanced 

search feature at this site, you can limit 

your search to documents published by 

the Department. 

List of Subjects in 34 CFR Part 685 

Administrative practice and 

procedure, Colleges and universities, 

Loan programs—education, Reporting 

and recordkeeping requirements, 

Student aid, Vocational education. 

Dated: July 12, 2018. 

Betsy DeVos, 

Secretary of Education. 

For the reasons discussed in the 

preamble, the Secretary of Education 

amends part 685 of title 34 of the Code 

of Federal Regulations as follows: 

PART 685—WILLIAM D. FORD 

FEDERAL DIRECT LOAN PROGRAM 

■ 1. The authority citation for part 685 

continues to read as follows: 


sradovich on DSK3GMQ082PROD with RULES
34048 Federal Register / Vol. 83, No. 139 / Thursday, July 19, 2018 / Rules and Regulations 

Authority: 20 U.S.C. 1070g, 1087a, et seq., 

unless otherwise noted. 

§ 685.300 [Amended] 

■ 2. Effective July 19, 2018, § 685.300 is 

amended by: 

■ a. Removing paragraph (b)(11) and 

redesignating paragraph (b)(12) as 

paragraph (b)(11). 

■ b. Removing paragraphs (d) through 

(i). 

■ 3. Effective July 1, 2019, § 685.300 is 

amended by: 

■ a. Redesignating paragraph (b)(11) as 

paragraph (b)(12). 

■ b. Adding a new paragraph (b)(11). 

■ c. Adding paragraphs (d) through (i). 

The additions read as follows: 

§ 685.300 Agreements between an eligible 

school and the Secretary for participation in 

the Direct Loan Program. 

* * * * * 

(b) * * * 

(11) Comply with the provisions of 

paragraphs (d) through (i) of this section 

regarding student claims and disputes. 

* * * * * 

(d) Borrower defense claims in an 

internal dispute process. The school 

will not compel any student to pursue 

a complaint based on a borrower 

defense claim through an internal 

dispute process before the student 

presents the complaint to an accrediting 

agency or government agency 

authorized to hear the complaint. 

(e) Class action bans. (1) The school 

will not seek to rely in any way on a 

predispute arbitration agreement or on 

any other predispute agreement with a 

student who has obtained or benefited 

from a Direct Loan, with respect to any 

aspect of a class action that is related to 

a borrower defense claim, including to 

seek a stay or dismissal of particular 

claims or the entire action, unless and 

until the presiding court has ruled that 

the case may not proceed as a class 

action and, if that ruling may be subject 

to appellate review on an interlocutory 

basis, the time to seek such review has 

elapsed or the review has been resolved. 

(2) Reliance on a predispute 

arbitration agreement, or on any other 

predispute agreement, with a student, 

with respect to any aspect of a class 

action includes, but is not limited to, 

any of the following: 

(i) Seeking dismissal, deferral, or stay 

of any aspect of a class action. 

(ii) Seeking to exclude a person or 

persons from a class in a class action. 

(iii) Objecting to or seeking a 

protective order intended to avoid 

responding to discovery in a class 

action. 

(iv) Filing a claim in arbitration 

against a student who has filed a claim 

on the same issue in a class action. 

(v) Filing a claim in arbitration against 

a student who has filed a claim on the 

same issue in a class action after the 

trial court has denied a motion to certify 

the class but before an appellate court 

has ruled on an interlocutory appeal of 

that motion, if the time to seek such an 

appeal has not elapsed or the appeal has 

not been resolved. 

(vi) Filing a claim in arbitration 

against a student who has filed a claim 

on the same issue in a class action after 

the trial court in that class action has 

granted a motion to dismiss the claim 

and, in doing so, the court noted that 

the consumer has leave to refile the 

claim on a class basis, if the time to 

refile the claim has not elapsed. 

(3) Required provisions and notices: 

(i) The school must include the 

following provision in any agreements 

with a student recipient of a Direct Loan 

for attendance at the school, or, with 

respect to a Parent PLUS Loan, a student 

for whom the PLUS loan was obtained, 

that include any agreement regarding 

predispute arbitration or any other 

predispute agreement addressing class 

actions and that are entered into after 

the effective date of this regulation: ‘‘We 

agree that neither we nor anyone else 

will use this agreement to stop you from 

being part of a class action lawsuit in 

court. You may file a class action 

lawsuit in court or you may be a 

member of a class action lawsuit even 

if you do not file it. This provision 

applies only to class action claims 

concerning our acts or omissions 

regarding the making of the Direct Loan 

or the provision by us of educational 

services for which the Direct Loan was 

obtained. We agree that only the court 

is to decide whether a claim asserted in 

the lawsuit is a claim regarding the 

making of the Federal Direct Loan or the 

provision of educational services for 

which the loan was obtained.’’ 

(ii) When a predispute arbitration 

agreement or any other predispute 

agreement addressing class actions has 

been entered into before the effective 

date of this regulation and does not 

contain a provision described in 

paragraph (e)(3)(i) of this section, the 

school must either ensure the agreement 

is amended to contain the provision 

specified in paragraph (e)(3)(iii)(A) of 

this section or provide the student to 

whom the agreement applies with the 

written notice specified in paragraph 

(e)(3)(iii)(B) of this section. 

(iii) The school must ensure the 

agreement described in paragraph 

(e)(3)(ii) of this section is amended to 

contain the provision specified in 

paragraph (e)(3)(iii)(A) of this section or 

must provide the notice specified in 

paragraph (e)(3)(iii)(B) of this section to 

students no later than the exit 

counseling required under § 685.304(b), 

or the date on which the school files its 

initial response to a demand for 

arbitration or service of a complaint 

from a student who has not already been 

sent a notice or amendment. 

(A) Agreement provision. ‘‘We agree 

that neither we nor anyone else who 

later becomes a party to this agreement 

will use it to stop you from being part 

of a class action lawsuit in court. You 

may file a class action lawsuit in court 

or you may be a member of a class 

action lawsuit in court even if you do 

not file it. This provision applies only 

to class action claims concerning our 

acts or omissions regarding the making 

of the Federal Direct Loan or the 

provision by us of educational services 

for which the Federal Direct Loan was 

obtained. We agree that only the court 

is to decide whether a claim asserted in 

the lawsuit is a claim regarding the 

making of the Federal Direct Loan or the 

provision of educational services for 

which the loan was obtained.’’ 

(B) Notice provision. ‘‘We agree not to 

use any predispute agreement to stop 

you from being part of a class action 

lawsuit in court. You may file a class 

action lawsuit in court or you may be 

a member of a class action lawsuit even 

if you do not file it. This provision 

applies only to class action claims 

concerning our acts or omissions 

regarding the making of the Federal 

Direct Loan or the provision by us of 

educational services for which the 

Federal Direct Loan was obtained. We 

agree that only the court is to decide 

whether a claim asserted in the lawsuit 

is a claim regarding the making of the 

Federal Direct Loan or the provision of 

educational services for which the loan 

was obtained.’’ 

(f) Predispute arbitration agreements. 

(1)(i) The school will not enter into a 

predispute agreement to arbitrate a 

borrower defense claim, or rely in any 

way on a predispute arbitration 

agreement with respect to any aspect of 

a borrower defense claim. 

(ii) A student may enter into a 

voluntary post-dispute arbitration 

agreement with a school to arbitrate a 

borrower defense claim. 

(2) Reliance on a predispute 

arbitration agreement with a student 

with respect to any aspect of a borrower 

defense claim includes, but is not 

limited to, any of the following: 

(i) Seeking dismissal, deferral, or stay 

of any aspect of a judicial action filed 

by the student, including joinder with 

others in an action; 

(ii) Objecting to or seeking a 

protective order intended to avoid 


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Federal Register / Vol. 83, No. 139 / Thursday, July 19, 2018 / Rules and Regulations 34049 

responding to discovery in a judicial 

action filed by the student; and 

(iii) Filing a claim in arbitration 

against a student who has filed a suit on 

the same claim. 

(3) Required provisions and notices: 

(i) The school must include the 

following provision in any predispute 

arbitration agreements with a student 

recipient of a Direct Loan for attendance 

at the school, or, with respect to a 

Parent PLUS Loan, a student for whom 

the PLUS loan was obtained, that 

include any agreement regarding 

arbitration and that are entered into 

after the effective date of this regulation: 

‘‘We agree that neither we nor anyone 

else will use this agreement to stop you 

from bringing a lawsuit concerning our 

acts or omissions regarding the making 

of the Federal Direct Loan or the 

provision by us of educational services 

for which the Federal Direct Loan was 

obtained. You may file a lawsuit for 

such a claim or you may be a member 

of a class action lawsuit for such a claim 

even if you do not file it. This provision 

does not apply to lawsuits concerning 

other claims. We agree that only the 

court is to decide whether a claim 

asserted in the lawsuit is a claim 

regarding the making of the Federal 

Direct Loan or the provision of 

educational services for which the loan 

was obtained.’’ 

(ii) When a predispute arbitration 

agreement has been entered into before 

the effective date of this regulation that 

did not contain the provision specified 

in paragraph (f)(3)(i) of this section, the 

school must either ensure the agreement 

is amended to contain the provision 

specified in paragraph (f)(3)(iii)(A) of 

this section or provide the student to 

whom the agreement applies with the 

written notice specified in paragraph 

(f)(3)(iii)(B) of this section. 

(iii) The school must ensure the 

agreement described in paragraph 

(f)(3)(ii) of this section is amended to 

contain the provision specified in 

paragraph (f)(3)(iii)(A) of this section or 

must provide the notice specified in 

paragraph (f)(3)(iii)(B) of this section to 

students no later than the exit 

counseling required under § 685.304(b), 

or the date on which the school files its 

initial response to a demand for 

arbitration or service of a complaint 

from a student who has not already been 

sent a notice or amendment. 

(A) Agreement provision. ‘‘We agree 

that neither we nor anyone else who 

later becomes a party to this predispute 

arbitration agreement will use it to stop 

you from bringing a lawsuit concerning 

our acts or omissions regarding the 

making of the Federal Direct Loan or the 

provision by us of educational services 

for which the Federal Direct Loan was 

obtained. You may file a lawsuit for 

such a claim or you may be a member 

of a class action lawsuit for such a claim 

even if you do not file it. This provision 

does not apply to other claims. We agree 

that only the court is to decide whether 

a claim asserted in the lawsuit is a claim 

regarding the making of the Federal 

Direct Loan or the provision of 

educational services for which the loan 

was obtained.’’ 

(B) Notice provision. ‘‘We agree not to 

use any predispute arbitration 

agreement to stop you from bringing a 

lawsuit concerning our acts or 

omissions regarding the making of the 

Federal Direct Loan or the provision by 

us of educational services for which the 

Federal Direct Loan was obtained. You 

may file a lawsuit regarding such a 

claim or you may be a member of a class 

action lawsuit regarding such a claim 

even if you do not file it. This provision 

does not apply to any other claims. We 

agree that only the court is to decide 

whether a claim asserted in the lawsuit 

is a claim regarding the making of the 

Direct Loan or the provision of 

educational services for which the loan 

was obtained.’’ 

(g) Submission of arbitral records. (1) 

A school must submit a copy of the 

following records to the Secretary, in 

the form and manner specified by the 

Secretary, in connection with any claim 

filed in arbitration by or against the 

school concerning a borrower defense 

claim: 

(i) The initial claim and any 

counterclaim. 

(ii) The arbitration agreement filed 

with the arbitrator or arbitration 

administrator. 

(iii) The judgment or award, if any, 

issued by the arbitrator or arbitration 

administrator. 

(iv) If an arbitrator or arbitration 

administrator refuses to administer or 

dismisses a claim due to the school’s 

failure to pay required filing or 

administrative fees, any communication 

the school receives from the arbitrator or 

arbitration administrator related to such 

a refusal. 

(v) Any communication the school 

receives from an arbitrator or an 

arbitration administrator related to a 

determination that a predispute 

arbitration agreement regarding 

educational services provided by the 

school does not comply with the 

administrator’s fairness principles, 

rules, or similar requirements, if such a 

determination occurs. 

(2) A school must submit any record 

required pursuant to paragraph (g)(1) of 

this section within 60 days of filing by 

the school of any such record with the 

arbitrator or arbitration administrator 

and within 60 days of receipt by the 

school of any such record filed or sent 

by someone other than the school, such 

as the arbitrator, the arbitration 

administrator, or the student. 

(h) Submission of judicial records. (1) 

A school must submit a copy of the 

following records to the Secretary, in 

the form and manner specified by the 

Secretary, in connection with any claim 

concerning a borrower defense claim 

filed in a lawsuit by the school against 

the student or by any party, including 

a government agency, against the 

school: 

(i) The complaint and any 

counterclaim. 

(ii) Any dispositive motion filed by a 

party to the suit; and 

(iii) The ruling on any dispositive 

motion and the judgment issued by the 

court. 

(2) A school must submit any record 

required pursuant to paragraph (h)(1) of 

this section within 30 days of filing or 

receipt, as applicable, of the complaint, 

answer, or dispositive motion, and 

within 30 days of receipt of any ruling 

on a dispositive motion or a final 

judgment. 

(i) Definitions. For the purposes of 

paragraphs (d) through (h) of this 

section, the term— 

(1) ‘‘Borrower defense claim’’ means a 

claim that is or could be asserted as a 

borrower defense as defined in 

§ 685.222(a)(5), including a claim other 

than one based on § 685.222(c) or (d) 

that may be asserted under § 685.222(b) 

if reduced to judgment; 

(2) ‘‘Class action’’ means a lawsuit in 

which one or more parties seek class 

treatment pursuant to Federal Rule of 

Civil Procedure 23 or any State process 

analogous to Federal Rule of Civil 

Procedure 23; 

(3) ‘‘Dispositive motion’’ means a 

motion asking for a court order that 

entirely disposes of one or more claims 

in favor of the party who files the 

motion without need for further court 

proceedings; 

(4) ‘‘Predispute arbitration agreement’’ 

means any agreement, regardless of its 

form or structure, between a school or 

a party acting on behalf of a school and 

a student providing for arbitration of 

any future dispute between the parties. 

* * * * * 

[FR Doc. 2018–15260 Filed 7–18–18; 8:45 am] 

BILLING CODE 4000–01–P 


sradovich on DSK3GMQ082PROD with RULES