Federal Student Aid released the Notice of Proposed Rulemaking (NPRM) on the Borrower Defense to Repayment Regulations. The proposed changes will change the conditions and the ways students can seek discharges on their federal loans. The NPRM is published so that folks like you can weigh in and comment on the proposed rules for determining whether a borrower has a defense to repayment on a federal direct loan based on an act or omission of a school, proposed revisions to the financial responsibility standards and the creation of new disclosure requirements for schools. Comments are due by 8/1/16. Read the full NPRM at http://bit.ly/29cnKug
In March, Federal Student Aid implemented a Direct Loan Subsidized Usage Inquiry Page on the Common Origination and Disbursement (COD) Web site. It gives users the ability to send cases of incorrect Subsidized Usage Period calculations or incorrect applications of loss of subsidy to the Department of Education (the Department) for review and support. Most of the inquiries COD has received, have been the result of school’s simply not understanding the 150% limit or misreported data that schools should be correcting themselves.
The Office of Postsecondary Education has developed a set of Questions and Answers to assist institutions in implementing the new provisions of the Cash Management Regulations that go into effect on July 1, 2016. These Q&As cover requirements relating to Tier One and Tier Two arrangements, the student choice menu, fee limitations, disclosures, books and supplies, and confirming student eligibility. http://1.usa.gov/1XJvTLe