Washington DC Federal Update February 2 2016 Annmarie Weisman Office of Postsecondary Education Regulatory Update Recent regulatory efforts Revised Pay As You Earn REPAYE Program Integrity and Improvement Cash Management ID: 789391
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NCHER Legislative ConferenceWashington, DC Federal UpdateFebruary 2, 2016
Annmarie Weisman, Office of Postsecondary Education
Slide2Regulatory Update
Slide3Recent regulatory efforts“Revised” Pay As You Earn (REPAYE)Program Integrity and Improvement (Cash Management)
(completed)
3
Slide4Recent regulatory efforts“Revised” Pay As You Earn (“REPAYE”)Feb. - April, 2015:
Negotiations held
Consensus
reached on a Revised Pay As You Earn repayment plan (
REPAYE)
extends 10%
income cap to all borrowers regardless of when they
borrowed
Repayment period = 20 years for undergraduate loans and 25 years if graduate loans included
PAYE still available; not a replacement planOctober 30, 2015: Final regulations publishedDec. 2015: Early implementation
(completed)
4
Slide5Recent regulatory effortsProgram Integrity and Improvement (Cash Management)October 30, 2015: Final regulations publishedJuly 1, 2016: Regulations effectiveEnsure that students receiving Title IV, HEA funds:Have convenient access to their fundsDo not incur
unreasonable
financial account fees
Are not led to believe they must open a particular financial account to receive their funds
(completed)
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Slide6Recent regulatory effortsBorrower Defenses to RepaymentSept. 2015: Public hearings – DC, San FranciscoOct. 20, 2015: Published Federal Register Noticerequested negotiator nominations
Announce dates of committee meetings
Nov.
19, 2015: Negotiator nominations due
Dec. 21, 2015:
2
nd
FR Notice
requesting negotiators
Dec. 28, 2015: Additional nominations due
(in progress)
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Slide7Recent regulatory effortsBorrower Defenses to RepaymentNegotiation sessions: Session 1: January 12-14, 2016Session 2: February 17-19, 2016Session 3: March 16-18, 2016Expect
to publish proposed rules this summer
Expect
to publish final rules by November 1,
2016
(in progress)
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Slide8Recent regulatory effortsBorrower Defenses to Repayment (*etc.)Tentative issues for discussion; finalizing issues in Feb.Procedures for a borrower to establish a defense to repaymentCriteria to identify acts or omissions of an institution that constitute defenses to repaymentStandards and procedures that ED will use to determine school liability from borrower defensesEffect of borrower defenses on institutional administrative capability assessments (financial responsibility)
(in progress)
8
Slide9Recent regulatory effortsBorrower Defenses to Repayment (*etc.)Other potential issues for discussionFinalizing issues in FebruaryFalse Certification*Electronic Death Certificates*Nurse Faculty Loans in Consolidation Loans*Interest Capitalization*REPAYE Technical Corrections*
Collection Costs*
(in progress)
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Slide10Recent regulatory effortsBorrower Defenses to RepaymentRulemaking website:http://www2.ed.gov/policy/highered/reg/hearulemaking/2016/index.html
(in progress)
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Slide11AdministrationPriorities
Slide12Administration prioritiesBy 2020, America will once again have the highest proportion of college graduates in the world.Themes:Increasing accessMaking college more affordableImproving outcomesPresident’s 2020 goal
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Slide13Administration prioritiesStudent Aid Bill of Rights Income-Driven Repayment PlansPay As You Earn (PAYE)
Revised Pay As You Earn (REPAYE)
Increasing affordability – back end strategies
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Slide14Administration prioritiesStudent Aid Bill of RightsProtects Social Security benefits of borrowers with disabilities who may qualify for a loan discharge or other repayment optionsEnsures a fair, transparent, and reasonable debt collection process for defaulted Federal student loans
Compensation
of collection agencies, guidance provided to collection agencies, ensuring accurate information
provided
Increasing affordability – back end strategies
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Slide15Affordability: Student Aid Bill of Rights
Slide16Administration prioritiesPay As You Earn (PAYE)Caps payments for Federal Direct Student Loans at 10% of discretionary income for eligible borrowersBenefits
:
Helps borrowers to manage
their debt
Helps borrowers to avoid default
Provides relief on loan payments, especially in
the early
years of repayment
Complements other repayment
plans
Increasing affordability – back end strategies
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Slide17Administration priorities“Revised” Pay As You Earn “REPAYE”Feb. - April, 2015: Negotiations held Consensus reached on a Revised Pay As You Earn repayment plan (
REPAYE)
extends 10%
income cap to all borrowers regardless of when they
borrowed
Repayment period = 20 years for undergraduate loans and 25 years if graduate loans included
PAYE still available; not a replacement plan
October
30, 2015: Final regulations published
Dec. 2015: Early implementationIncreasing affordability – back end strategies
17
Slide18Contact InformationAnnmarie Weisman,Director, Policy Coordination GroupOffice of Postsecondary Educationannmarie.weisman@ed.govPhone: 202-502-7784 (until Feb. 26, 2016) Phone forwarded for 60 daysED directory available afterward
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