[Federal Register: May 28, 1999 (Volume 64, Number 103)]
[Rules and Regulations]               
[Page 29181-29183]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]

[[Page 29181]]


Part V

Department of Education

34 CFR Part 685

William D. Ford Federal Direct Loan Program; Final Rule

[[Page 29182]]



34 CFR Part 685

RIN 1840-AC57

William D. Ford Federal Direct Loan Program

AGENCY: Department of Education.

ACTION: Final regulations.


SUMMARY: The Secretary amends the William D. Ford Federal Direct Loan 
(Direct Loan) Program regulations, 34 CFR Part 685. This amendment 
deletes Appendix A of these regulations and cross-references to 
Appendix A within Part 685. Future updates to the information in 
Appendix A of 34 CFR Part 685 will be published in the Federal Register 
as an annual notice.

EFFECTIVE DATE: These regulations take effect July 1, 1999.

FOR FURTHER INFORMATION CONTACT: Mr. Donald Watson, U.S. Department of 
Education, Room 3045, ROB-3, 400 Maryland Avenue, SW, Washington, DC 
20202-5400. 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.
    Individuals with disabilities may obtain this document in an 
alternate format (e.g., Braille, large print, audiotape, or computer 
diskette) on request to the contact person listed in the preceding 

SUPPLEMENTARY INFORMATION: The Direct Loan regulations (34 CFR Part 
685) are amended to delete Appendix A ``Income Contingent Repayment,'' 
and to delete all references to Appendix A. All references to Appendix 
A are currently in Sec. 685.209, which implements provisions of the 
income contingent repayment (ICR) plan. The calculation of monthly 
payments under the ICR plan utilizes a factor that varies with the 
amount of the borrower's income. This number is called the income 
percentage factor and is affected by annual changes in the Consumer 
Price Index (CPI). Appendix A contains a table of the income percentage 
factors; therefore, Appendix A must be revised annually to reflect the 
updated income percentage factors.
    In addition to the income percentage factors, Appendix A provides 
supplementary charts and information illustrating how the ICR payments 
are calculated. Specifically, it includes case examples of the 
calculation of a borrower's monthly payment based on individual 
borrower information, a constant multiplier chart that shows various 
interest rates factors, and a chart of sample first-year monthly 
repayment amounts for borrowers at various income and debt levels. 
Because these charts use data derived from the income percentage 
factors, the charts, and therefore Appendix A, must be revised 
    Appendices included with regulations may only be revised by 
amending the regulations. Since 1996, the amendments to Appendix A have 
been published annually as final rules.
    The regulations for implementing the ICR plan are in Sec. 685.209. 
The information in Appendix A merely gives the data necessary to 
calculate a monthly ICR payment and provides examples illustrating the 
requirements prescribed in Sec. 685.209. Therefore, the Secretary has 
concluded that the information contained in Appendix A need not be 
included in the Code of Federal Regulations. Consequently, the 
Secretary has decided to delete Appendix A and all references to it in 
the Direct Loan Program regulations. Beginning in 1999, the Secretary 
will publish the income percentage factors, case examples of 
calculations, a constant multiplier chart, and sample first year 
monthly repayment tables for various income and debt levels in an 
annual notice in the Federal Register.
    This change to the regulations does not have a substantive effect 
on the Direct Loan Program regulations; it simply provides interested 
parties with updates of ICR plan information in an annual notice, 
rather than in the Code of Federal Regulations. Because publication of 
a notice is not as complex a process as publishing amendments to the 
Direct Loan Program regulations, this change ensures that annual 
updates will be provided to the public in a more timely and cost-
effective manner.

Waiver of Proposed Rulemaking

    In accordance with the Administrative Procedure Act, 5 U.S.C. 553, 
it is the practice for the Secretary to offer interested parties the 
opportunity to comment on proposed regulations. However, the changes in 
this document do not establish any new substantive rules. The 
regulatory changes in this document are procedural amendments only. 
Therefore, the Secretary has determined that publication of a notice of 
proposed rulemaking is unnecessary and contrary to the public interest 
under 5 U.S.C. 553(b)(B) and is also exempt under 5 U.S.C. 553(b)(A). 
For the same reasons, the Secretary has determined, under section 
492(b)(2) of the Higher Education Act of 1965, as amended, that these 
regulations should not be subject to negotiated rulemaking.

Paperwork Reduction Act of 1995

    These regulations have been examined under the Paperwork Reduction 
Act of 1995 and have been found to contain no information collection 

Regulatory Flexibility Act Certification

    The Secretary certifies that these regulations will not have 
significant economic impact on a substantial number of small entities. 
The regulations provide illustrative information about repaying Direct 
Loans and will not affect institutions participating in the Direct Loan 
Program. The Regulatory Flexibility Act does not include individuals in 
its definition of ``small entities.'' Thus, the changes will not have a 
significant economic impact on any small entities under the Regulatory 
Flexibility Act.

Assessment of Educational Impact

    The Secretary has determined that the regulations in this document 
do not require transmission of information that is being gathered by or 
is available from any other agency or authority of the United States.

Electronic Access to This Document

    You may view this document, as well as all other Department of 
Education documents published in the Federal Register, in text or Adobe 
Portable Document Format (PDF) on the World Wide Web at either of the 
following sites:


To use the PDF you must have the Adobe Acrobat Reader Program with 
Search, which is available free at either of the previous sites. If you 
have questions about using the pdf, call the U.S. Government Printing 
Office at (202) 512-1530 or, toll free at 1-888-293-6498.

    Note: The official version of a document is the document 
published in the Federal Register. Free Internet access to the 
official edition of the Federal Register and the Code of Federal 
Regulations is available on GPO Access at:


List of Subjects in 34 CFR Part 685

    Administrative practice and procedure, Colleges and universities, 
Education, Loan programs-education, Reporting and recordkeeping 
requirements, Student aid, Vocational education.

[[Page 29183]]

(Catalog of Federal Domestic Assistance Number 84.268 William D. 
Ford Federal Direct Loan Program)

    Dated: May 24, 1999.
Richard W. Riley,
Secretary of Education.

    The Secretary amends part 685 of title 34 of the Code of Federal 
Regulations as follows:


    1. The authority citation for part 685 continues to read as 

    Authority: 20 U.S.C. 1087a et seq., unless otherwise noted.

Appendix A to part 685--[Removed]

    2. Appendix A to part 685 is removed.

Sec. 685.209  [Amended]

    3. In Sec. 685.209, paragraph (a)(2)(i) is amended by removing 
``appendix A to this part'' and adding, in its place, ``a notice 
published annually by the Secretary in the Federal Register''; 
paragraph (a)(4) is amended by removing ``Appendix A'', and adding, in 
its place, ``the annual notice published by the Secretary''; paragraph 
(a)(5) is amended by removing ``appendix A'' and adding, in its place, 
``the annual notice published by the Secretary''; and paragraph (a)(9) 
is amended by removing ``appendix A to this part'', and adding, in its 
place, ``the annual notice published by the Secretary''.

[FR Doc. 99-13583 Filed 5-27-99; 8:45 am]