Federal Family Education Loan Program

DEPARTMENT OF EDUCATION

34 CFR Part 682

RIN 1840-AB83

Federal Family Education Loan Program

AGENCY: Department of Education.

ACTION: Notice of revised effective date; final regulations.

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SUMMARY: In the Federal Register of April 29, 1994 (59 FR 22462), the

Secretary published final regulations for the Federal Family Education

Loan (FFEL) Program, 34 CFR part 682. The Secretary is delaying the

effective date of these regulations until July 1, 1994. By delaying the

effective date, the Secretary seeks to reduce confusion about the

effective date of these regulations by making the effective date

consistent with the effective date of other changes to the regulations

published by the Secretary at that same time.

EFFECTIVE DATE: These regulations take effect on July 1, 1994, with the

exception of the amendments to Secs. 682.202, 682.208, 682.402,

682.410, and 682.411. These amendments will become effective after the

information collection requirements contained in these sections have

been submitted by the Department of Education and approved by the

Office of Management and Budget under the Paperwork Reduction Act of

1980.

Subject to approval under the Paperwork Reduction Act, the

following applicability dates also apply to certain provisions of these

regulations:

Section 682.202(c), which reduces the amount of the origination fee

charged on an FFEL Program loan, applies to loans for which the first

disbursement is made on or after July 1, 1994, if the period of

enrollment for which the loan is intended either includes that date or

begins on or after that date.

Section 682.202(d), which reduces the amount of the insurance

premium charged on an FFEL Program loan, applies to loans for which the

first disbursement is made on or after July 1, 1994, if the period of

enrollment for which the loan is intended either includes that date or

begins on or after that date.

Section 682.410(b)(5)-(7), which requires guaranty agencies to warn

defaulters that they may be subject to administrative wage garnishment

and offset against Federal or State income tax refunds, applies to

claims paid by the agency on or after August 27, 1994.

Section 682.411, which requires lenders to warn delinquent

borrowers that they may be subject to administrative wage garnishment

and offset against Federal or State income tax refunds if they default

on their loans, applies to loans on which the first day of delinquency

is on or after August 27, 1994.

FOR FURTHER INFORMATION CONTACT: George Harris, Senior Program

Specialist, Loans Branch, Division of Policy Development, Policy,

Training, and Analysis Service, U.S. Department of Education, 400

Maryland Avenue, SW. (Room 4310, ROB-3), Washington, DC 20202-5449.

Telephone: (202) 708-8242. Individuals who use a telecommunications

device for the deaf (TDD) may call the Federal Information Relay

Service (FIRS) at 1-800-877-8339 between 8 a.m. and 8 p.m., Eastern

time, Monday through Friday.

SUPPLEMENTARY INFORMATION: The regulations which are affected by this

change in effective date amend the FFEL loan discharge regulations. The

effective date of these regulations has been delayed until July 1, 1994

so that all of the regulations implementing changes to the Higher

Education Act of 1965, as amended, (HEA), by the Higher Education

Amendments of 1992, and certain technical changes made by the Cash

Management Improvement Act Amendments of 1993 in the Federal Family

Education Loan (FFEL) Program which were published in the Federal

Register before May 1, 1994 will take effect on July 1, 1994. The

Secretary was informed that there was confusion among participants in

the FFEL Program about the effective date of the regulations because

other regulations published at the same time and implementing other

changes to the HEA were not effective until July 1, 1994. The Secretary

is delaying the effective date of these regulations to resolve the

confusion and to afford participants in the FFEL program additional

time to comply with the requirements of these regulations.

Waiver of Rulemaking

In accordance with section 431(b)(2)(A) of the General Education

Provisions Act (20 U.S.C. 1232 (b)(2)(A)), and the Administrative

Procedure Act (5 U.S.C. 553), it is the practice of the Secretary to

offer interested parties the opportunity to comment on proposed

regulations. However, because the Secretary is delaying the effective

date of these regulations for only a brief period to reduce confusion

and afford participants in the FFEL program additional time for

compliance, the Secretary finds, in accordance with 5 U.S.C. 553(b)(B),

that the solicitation of public comment on this change in the effective

date would be impracticable and contrary to the public interest.

(Catalog of Federal Domestic Assistance Number: 84.032 Federal

Family Education Loan Program)

Dated: June 27, 1994.

Richard W. Riley,

Secretary of Education.

[FR Doc. 94-16002 Filed 6-29-94; 8:45 am]

BILLING CODE 4000-01-P