LEGISLATIVE RESOURCES (select a link)
• OGSLP Legislative Updates
• CCRAA and 2007 Final Regulations Training
• CCRAA Resources
• Final Regulations published November 1, 2007 and NPRM Resources
• 2007-2008 Negotiated Rulemaking
• 2007-2008 Legislation
• THEEA and HERA Resources
• HEROES Resources
• Additional Online Resources
HOT TOPICS
Ensuring Continued Access to Student Loans Act of 2008
The Ensuring Continued Access to Student Loans Act of 2008 (H.R. 5715) was signed by the President on May 7, 2008. The bill increases annual and aggregate loan limits for undergraduate dependent and independent students; includes an in-school deferment provision for parent PLUS loans, including extenuating circumstances; clarifies the Lender of Last Resort program (LLR); and grants temporary authority to the U.S. Department of Education (ED) to purchase student loans, improving program liquidity.
Provisions of the new law:
Increase the Annual Unsubsidized Dependent Undergraduate Stafford Loan Limit by $2,000 and increase the aggregate limit to $31,000.
Increase the Annual Unsubsidized Independent Undergraduate Stafford Loan Limit by $2,000 for the first two years of undergraduate study and increase the aggregate limit to $57,500.
Allow Parent PLUS Loan borrowers to defer repayment until six months after the student ceases to be enrolled at least half-time.
Temporarily allow up to 180 days delinquency on a home mortgage or medical payments if the PLUS borrower is not more than 89 days delinquent on the repayment of any other debt.
Permit the Secretary of Education to designate “LLR” on an institutional basis.
Clarify that existing law gives ED the authority to advance federal funds to guaranty agencies in the event they don’t have sufficient capital to originate new loans and carry out LLR requirements.
Waive the origination fee for LLR loans.
Delay Parent PLUS auctions until July 1, 2010.
Lender of Last Resort
On May 5, ED released GEN-08-05/FP-08-05, providing additional guidance to guaranty agencies regarding the LLR, which is designed to ensure that borrowers have continued access to Federal Family Education Loan Program (FFELP) loans. The letter outlines LLR implementation details and provides a ‘questions and answers’ (Q&A) attachment. It’s important to note that Q&A item 37 advises that schools that help a student find a conventional lender after being turned down for a loan will not be in violation of the preferred lender list requirements published in the November 1 Federal Register, which are effective July 1, 2008.
Additional LLR guidance is expected from ED now that the President has signed the Ensuring Continued Access to Student Loans Act of 2008 (H.R. 5715). While OGSLP and others in the FFELP community are hopeful that LLR won’t be needed, we’re working to prepare for the program in the event it becomes necessary for any students. Preparation tasks include:
Daily conference calls of the NCHELP (National Council of Higher Education Loan Programs) LLR task force, which has been meeting with ED officials to discuss development of agency LLR plans. This includes advocating for “school certification” of LLR eligibility as opposed to borrower-based approaches.
Working with the Oklahoma Student Loan Authority (OSLA), the state’s designated lender of last resort, to prepare operationally for the program.
Planning outreach efforts to inform schools and students about the availability of LLR loans, should the need arise.
For additional information and assistance, please contact your School/Lender Support Representative or Penny Gandy, School/Lender Services Manager, or call the department number at 800.247.0420, ext. 4329. We’re here to help!
Higher Education Act Update
A one-month extension of programs under the Higher Education Act (HEA) of 1965 – until May 31, 2008 - is expected to be signed by the President this week. The anticipated action would be the twelfth extension of the HEA, as the law has not been fully renewed since 1998.
To keep customers updated and informed on the current legislative happenings, OGSLP provides the following “OGSLP Legislative Updates.” If you have questions, please contact the Policy, Compliance, and Training department at 405.234.4432 or pct@ogslp.org.
OGSLP Legislative Updates
May 7, 2008 – Topics include: Ensuring Continued Access to Student Loans Act of 2008, Lender of Last Resort and Higher Education Act (HEA) Reauthorization
February 15, 2008 – Topic: Higher Education Act (HEA) Reauthorization
January 31, 2008 – Topics include: Potential Changes to Cohort Default Rate Formula and 2007-2008 Negotiated Rulemaking Begins
January 10, 2008 – Topics include: CCRAA DCL; Revised MPN Addenda DCL; CRAA Technical Corrections; and Determination of Not-For-Profit Holder Status for SAP Billing DCL
November 20, 2007 – Topics include: Reauthorization Legislation and an Appropriations Update
September 17, 2007 – Topics include: Budget Reconciliation Update - College Cost Reduction and Access Act; NCHELP Statement on H.R. 2669, the College Cost Reduction and Access Act; NCHELP Summary of the College Cost Reduction and Access Act; and links to the College Cost Reduction and Access Act Legislative Information.
August 1, 2007 – Topics include: OGSLP Comments on the NPRM; You Still Have Time to Comment on the NPRM; President Signs Temporary HEA Extension; Senate Reauthorization Bill (S. 1642) Update; House and Senate Action this Week; Where Do You Go To Find Bill Information?; and OGSLP's Legislation Page & Contact Information
July 24, 2007 – Topics include: Reminder - The Deadline for Comments is Approaching for the NPRM; Senate Reauthorization Bill (S. 1642) Update; Update on Reconciliation Bills - College Cost Reduction Act of 2007 (H.R. 2669) and Higher Education Access Act of 2007 (S. 1762); House Spending Bill (H.R. 3043) Update; and OGSLP's Legislation Page & Contact Information
July 5, 2007 – Topic: President Signs HEA Extension
June 13, 2007 – Topic: Official Notice of Proposed Rulemaking Published
CCRAA and 2007 Final Regulations Training
OGSLP hosted the “College Cost Reduction and Access Act (CCRAA) and New Loan Provisions” training sessions in November. For those who were not able to participate, the PowerPoint presentations are available below.
College Cost Reduction and Access Act (CCRAA) – Budget Reconciliation Legislation
The College Cost Reduction and Access Act (CCRAA), Pub. L 110-084, was signed by President Bush on September 27, 2007.
• CCRAA (Public Law 110-084) Bill text [H.R. 2669]
• OGSLP's CCRAA Impact Summary – updated 2/18/2008 (PDF)
• OGSLP’s CCRAA FAQs updated 1/14/2008
• Dear Colleague/ Partner Letters updated 1/9/2008 (PDF)
• CCRAA Technical Corrections (Public Law 110-153) Bill Text [S. 2371] - These are technical corrections to the definition of untaxed income and benefits affecting income-based repayment for married borrowers filing separately, as well as TEACH Grants.
• NCHELP September 10, 2007 News Release – NCHELP Statement on Passage H.R. 2669, the College Cost Reduction and Access Act (PDF)
• NCHELP Summary of the College Cost Reduction and Access Act (PDF)
• Congressional Budget Office (CBO) Cost Estimate for H.R. 2669 – report from the CBO on direct spending and revenues effects estimate for H.R. 2669 passed by the Senate and the House on September 7, 2007 (PDF)
• The College Cost Reduction and Access Act (H.R. 2669) as passed by the Senate and House on September 7, 2007 (PDF)
• Conference Report and Joint Explanatory Statement of the College Cost Reduction and Access Act (PDF)
• A black-line of Title IV, Parts A, C, E, F, H, and J as well as Part E of Title VII of the Higher Education Act of 1965, as amended by CCRAA (P.L. 110-084) signed by the president on September 27, 2007. Prepared by NCHELP’s Program Regulations Committee (PDF)
• A black-line of Title IV, Parts B, D, G and I of the Higher Education Act of 1965, as they would be amended by the College Cost Reduction and Access Act (H.R. 2669), passed by the Senate and the House on September 7, 2007. Prepared by NCHELP’s Program Regulations Committee (PDF)
• NCHELP Summary of Higher Education Access Act of 2007 (Senate) – The Senate passed S. 1762 on July 20, 2007, by a vote of 78 to 18. This bill that represents the Senate version of the budget reconciliation measure required under this year's budget resolution. [S. 1762]
Final Regulations published November 1, 2007
and Notice of Proposed Rulemaking (NPRM) Resources
The Department of Education published the official final rules and regulations November 1, 2007, based on the notice of proposed rulemaking (NPRM) and comments received.
Final Regulations and General Provisions Committee NPRM
The Department of Education published the official final rules and regulations on November 1, 2007, based on the notice of proposed rulemaking (NPRM) on general provisions in the August 8, 2007, Federal Register and the comments received. The links are provided below:
• Final Regulations - Federal Register (11/1/2007) (PDF)
• NCHELP’s General Provisions Final Rule Side-by-Side Analysis (Word Document)
• Federal Register dated August 8, 2007 (PDF)
• NCHELP's General Provisions Comments (PDF)
Final Regulations and Loans Committee NPRM
The Department of Education published the official final rules and regulations November 1, 2007, based on the notice of proposed rulemaking (NPRM) on student loan issues in the June 12, 2007, Federal Register and the comments received. Links to the Final Regulations and Loans Committee NPRM and related information are provided below:
• Final Loan Regulations - Federal Register (11/1/2007) (PDF)
• OGSLP's Final Loan Regulations Impact Summary - updated 11/12/2007 (PDF)
• OGSLP’s Final Loan Regulations FAQs - updated 1/14/2008
• NCHELP’s Loan Program Final Rule Side-by-Side Analysis - updated 1/25/2008
• NCHELP Summary of Final Loan Regulations (PDF)
• Federal Register dated June 12, 2007 (PDF)
• OGSLP's Loans Committee NPRM Comments (PDF)
• NCHELP's Loans Committee NPRM Comments (PDF)
• NCHELP's Loans Committee NPRM Summary (PDF)
NCHELP's Integrated Regulations
34 CFR 668 – Incorporating General Provisions Final Rule published November 1, 2007 (PDF)
34 CFR 682 – Incorporating General Provisions Final Rule published November 1, 2007 and Loan Final Rule published November 1, 2007 (PDF)
34 CFR 685 – Incorporating General Provisions Final Rule published November 1, 2007 and Loan Final Rule published November 1, 2007 (PDF)
2007-2008 Negotiated Rulemaking
The Department announced the establishment of two negotiated rulemaking committees to develop proposed regulations related to Federal student aid programs. The first committee will focus on proposed regulations for the Teacher Education Assistance for College and Higher Education (TEACH) Grant program. The second committee will focus on proposed regulations for other Federal student aid programs authorized by Title IV of the Higher Education Act (HEA).
Student Loan CommitteeNEW!
Agreement was reached on April 14 by the federal and nonfederal negotiators on outstanding issues regarding the negotiated rulemaking loan package. An additional session was held after the third negotiated rulemaking session concluded. The Notice of Proposed Rulemaking (NPRM) should be released in the Federal Register in May or June with a 60-day public comment period. The final regulations should be published in the Federal Register by November 1 with an effective date of July 1, 2009.
April 8, 2008 – Student loan negotiated rulemaking committee draft regulations released by the Department for session four
February 26, 2008 – Student loan negotiated rulemaking committee draft regulations released by the Department for session three
January 30, 2008 – Student loan negotiated rulemaking committee draft regulations released by the Department
TEACH Grants CommitteeNEW!
TEACH Grants NPRM - March 21, 2008, Federal Register - The U.S. Secretary of Education issued proposed regulations for the TEACH Grant program, a non-need-based grant that provides up to $4,000 per year to students who are enrolled in an eligible program and who agree to teach in a high-need field at a low-income elementary or secondary school for at least four years within eight years of completing the program for which the TEACH Grant was awarded.
Negotiated Rulemaking – Two Committees Established
January 8, 2008 Federal Register – announced the establishment of two negotiated rulemaking committees to develop proposed regulations related to Federal student aid programs. (PDF)
January 3, 2008 ED Announces Negotiated Rulemaking Details (Web site) – The Secretary of Education has announced the establishment of two negotiated rulemaking committees to develop proposed regulations related to the Federal student aid programs.
November 2, 2007 Notice of Negotiated Rulemaking – Electronic Announcement
October 22, 2007 Federal Register Notice of Establishment of Negotiated Rulemaking Committee
NCHELP's 2007 HEA Legislation Page: This page consists of legislation introduced in 2007. Learn more about: College Student Relief Act of 2007 (H.R.5), President's FY 2008 budget proposal, both House and Senate versions of the Student Loan Sunshine Act.
Higher Education Act (HEA) Extensions
Higher Education Extension Act of 2008 (S. 2733) - Signed into law (Public Law 110-198) on March 24, 2008, giving an extension of programs under the Higher Education Act of 1965 until April 30, 2008. This is the tenth extension of the Higher Education Act, as the law has not been fully renewed since 1998.
Third Higher Education Extension Act of 2007 (S. 2258) – Signed into law (Public Law 110-109) on October 31, 2007, giving a five-month extension of programs under the Higher Education Act of 1965 until March 31, 2008. A technical amendment was included concerning the definition of an eligible not-for-profit lender for purposes of special allowance payments (SAP).
Second Higher Education Extension Act of 2007 (S. 1868) – Signed into law (Public Law 110-051) on July 31, 2007, giving a three-month extension of programs under the Higher Education Act of 1965 until October 31, 2007.
First Higher Education Extension Act of 2007 (S. 1704) – Signed into law (Public Law 110-044) on July 3, 2007, giving a 30-day extension of the Higher Education Act of 1965 (HEA) through July 31, 2007.
Reauthorization Legislation
NCHELP Senate and House Reauthorization Bill Summary - a summary of provisions impacting loan programs from both the Higher Education Amendments of 2007 (S. 1642) and the College Opportunity and Affordability Act of 2008 (H.R. 4137).
House Reauthorization Update - On February 7 the House of Representatives approved the College Opportunity and Affordability Act of 2008 (H.R. 4137) by a vote of 354-48. The bill reauthorizes the Higher Education Act (HEA) through FY 2012. During the debate on the bill, 27 amendments (Manager's Amendment to 4137) were considered for inclusion, and 26 of those amendments were adopted. NCHELP has released a Summary of Amendments to 4137. The bill will go to Conference Committee for negotiation. The current extension of the HEA expires on March 31, 2008.
NCHELP Summary of the College Access and Opportunity Act of 2007 (House) – The House Republican members of the U.S. House Committee on Education and Labor introduced H.R. 3746 on October 4, 2007. Provisions included in this legislation are the repeal of the parent PLUS Loan auction, alignment of the FFELP PLUS Loan interest rate with Direct Loan Program interest rate at 7.9%, provides for year-round Pell Grants, and requires lender and school disclosure of loan terms. [H.R. 3746]
NCHELP Summary of Higher Education Amendments of 2007 (Senate) – The Senate passed S. 1642 on July 24, 2007. This bill represents the Senate’s Higher Education Act (HEA) reauthorization bill, and includes provision relating to the FFELP, school codes of conduct, preferred lender lists, and issues concerning school accreditation, among others. [S. 1642]
NCHELP Detailed Summary of the Higher Education Amendments of 2007 – A detailed summary of the provisions contained in the Higher Education Amendments of 2007 legislation.
Appropriations Legislation
FY2009
NCHELP Summary of FY2009 Budget Proposal – President Bush submitted his FY 2009 budget blueprint to the Congress on Feb. 4 for consideration. [FY 2009 Budget Summary from the Department of Education]
FY2008
Consolidated Appropriations Act, 2008 (H.R. 2764) – On December 26, 2007, President Bush signed an omnibus spending bill into law. The approximate $500 billion bill provides FY08 domestic funding for all federal agencies, except for the Department of Defense, through September 30, 2008.
2008 Departments of Labor, Health and Human Services, and Education Appropriations (H.R. 3043) – The House approved on July 19 by a vote of 276 to 140, H.R. 3043 is a $15.2 billion discretionary funding measure which allocates $62.6 billion to fund programs falling under the jurisdiction of the Department of Education. The Senate passed the legislation with amendments on October 23, 2007, by a vote of 75 to 9. The House agreed to the conference report on November 6 and the bill was sent to the president on November 8. President Bush had threatened earlier to veto the bill and he did on November 13. The administration was concerned that the bill would have spent approximately $9 billion more than the FY2008 budget proposal. The House failed to get enough votes to override the presidential veto of the bill.
2008 Department of Labor, Health and Human Services, and Education Appropriations (S.1710) – the original Senate bill making appropriations for the Department of Labor, Health and Human Services, and Education, and related agencies for the fiscal year ending September 30, 2008 and for other purposes.
NCHELP Summary of FY2008 Budget Proposal - President Bush submitted his FY 2008 budget blueprint to the Congress on Feb. 5 for consideration. [FY 2008 Budget Summary from the Department of Education]
Market Liquidity LegislationNEW!
Ensuring Continued Access to Student Loans Act of 2008 (House) - the bill was passed by the House April 17 and passed on April 30 by the Senate with amendments On May 1 the differences in the House and Senate version of the bill was resolved and it was cleared for the President’s signature. [H.R 5715]
NCHELP Summary of the Strengthening Student Aid for All Act (Senate) – Introduced in the Senate on April 3 and referred to the Senate Committee on Health, Education, Labor, and Pensions. This bill is similar to H.R. 5715. [S. 2815]
Other Legislation
Amendment to section 435(o) of the Higher Education Act of 1965 regarding the definition of economic hardship – Both the House (H.R. 4344) and Senate (S. 2303) have introduced bills through committees to amend the definition of economic hardship. Both bills insert the debt-burden criteria language that was eliminated in the CCRAA economic hardship definition change provision.
Private Student Loan Transparency and Improvement Act of 2007 – This act was approved by the Senate Committee on Banking, Housing, and Urban Affairs on August 1. The legislation was initially introduced by Senator Chris Dodd (D-CT) on June 8. The bill would require lenders to provide more accurate and timely information to their customers regarding interest rates and terms and conditions of their products. This information will assist students in better understanding their financial options and obligations. It would also prohibit unethical practices in the student loan industry that may keep students and families from obtaining the most competitive and affordable student loans. The bill will next move to the Senate floor for consideration.
NCHELP Summary of the Financial Aid Accountability and Transparency Act of 2007 – Requiring increased disclosures by schools of relationships with student loan providers and includes a code of ethics found in the House (H.R. 890) and Senate (S. 486) versions of the Student Loan Sunshine Act. [H.R. 1994]
NCHELP Summary of the Student Loan Sunshine Act (House) – Introduced on Feb. 7, the bill seeks "to put a stop to unethical measures taken by private lenders to curry favor with colleges and universities.” [H.R. 890]
NCHELP Summary of the Student Loan Sunshine Act (Senate) – Introduced on Feb. 7, the bill would require schools and lenders to report certain activities if the school and the lender have an “educational loan arrangement...” [S. 486]
Third Higher Education Extension Act of 2006 (THEEA) Resources
The Third Higher Education Extension Act of 2006 (THEEA), Pub. L. 109-292, was signed by President Bush on September 30, 2006.
• Interim Final Regulations – Federal Register (12/28/2006)
• OGSLP's THEEA Impact Summary (PDF)
• THEEA Bill Text (H.R. 6138) (PDF)
• Dear Colleague Letter (GEN–06–21 / FP–06–17)
Higher Education Reconciliation Act of 2005 (HERA) Resources
The Higher Education Reconciliation Act of 2005 (HERA) which is Title VIII of the Deficit Reduction Act (DRA), was signed by President Bush on February 8, 2006.
• Final Regulations – Federal Register (11/1/2006)
• Interim Final Regulations – Federal Register (8/9/2006)
• OGSLP's HERA Impact Summary (PDF updated 2/20/2007)
• OGSLP's HERA FAQ's (last updated 2/20/2007)
• OGSLP's HERA Checklist (PDF)
• New Increases to Loan Limits
• The Technical Update, GA–2007-01: HERA Updates – Phase II
• NCHELP's HERA FAQ's with Best Practices Responses (PDF)
• NSLDS Lender Manifest Program File Specifications (NCHELP's Web site)
• NSLDS Newsletter (Number 13 - June 2006)
• HERA Bill Text (S. 1932) (PDF)
• Updated Forms, Addendums, and Plain Language Disclosures
• Dear Colleague / Partner Letters (updated 9/17/2007)
• Department of Education Correspondence – All of Federal Student Aid's published
information relating to the Enactment of the HERA
HERA Training
• June 9, 2006 – U.S. Department of Education: HERA Internet Training Sessions
• June 1, 2006 – OGSLP Annual Conference: OGSLP's HERA Update Presentation
• April 18 & 20, 2006 – OGSLP HERA Training Sessions (Oklahoma City and Tulsa):
HERA Training Presentation
HEROES Resources
HEROES provisions assist individuals who are applicants and recipients of Title IV financial aid and who:
are serving on active duty during a war or other military operation or national emergency
are performing qualifying National Guard duty during a war or other military operation or national emergency
reside or are employed in an area that is declared a disaster area by any Federal, State, or local official in connection with a national emergency
suffered direct economic hardship as a direct result of a war or other military operation or national emergency, as determined by the Secretary
HEROES provisions became effective Dec. 12, 2003 and have been extended to September 30, 2012.
Additionally, there is a reporting requirement for guarantors, lenders, servicers and schools. Upon request you must provide to ED information on individuals who have benefited from one or more of the provisions in the HEROES Act.
• OGSLP HEROES Chart (PDF) – all of the waivers and modifications do not apply to all affected individuals. The chart provides information based on the categories of individuals who are eligible for the waivers and modifications - updated January 2008
• Federal Register from December 26, 2007 (PDF)
• Public Law 110-93 (PDF) – On September 30, 2007, President Bush signed, H.R. 3625, which eliminated the September 30, 2007 expiration date making permanent the Secretary’s authority to issue waivers and modifications of statutory and regulatory provisions under the HEROES Act of 2003
• Federal Register from October 20, 2005 (PDF)
• H.R. 2132 (PDF) – On September 30, 2005, President Bush signed into law an extension of the HEROES Act from the original expiration date of September 30, 2005 to September 30, 2007
• Federal Register from December 12, 2003 (PDF)
• Public Law 108-76 (PDF) – On August 19, President Bush signed into law the Higher Education Relief Opportunities for Students Act of 2003 (HEROES).
NCHELP's e-Library: The NCHELP e-Library is a collaborative effort to provide the latest and most complete source of reference materials relating to the Federal Family Education Loan Program.
Thomas (The Library of Congress): The leadership of the 104th Congress directed the Library of Congress to make federal legislative information freely available to the public.
Oklahoma's U.S. Congressional Delegation: This link provides contact information for the U.S. House of Representatives and the United States Senate.
Adobe Acrobat Reader: Download the free Adobe Acrobat program to view the PDFs provided throughout our Web site.
Questions?
If you have additional questions about legislative activity, please contact Policy, Compliance and Training at 405.234.4432 or by email at pct@ogslp.org.