[Federal Register: May 14, 2003 (Volume 68, Number 93)]
[Rules and Regulations]               
[Page 25821-25822]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]

Download: PDF Version



34 CFR Parts 674, 682, and 685

Federal Student Aid Programs (Federal Perkins Loan Program, 
Federal Direct Loan Program, Federal Family Education Loan Program)

ACTION: Notice of waivers and modifications of statutory and regulatory 


SUMMARY: The Secretary of Education announces waivers and modifications 
of statutory and regulatory provisions that are appropriate to assist 
students and borrowers under the Federal Perkins Loan Program, Federal 
Direct Loan Program, and Federal Family Education Loan Program who are 
members of the reserve components of the Armed Forces under Title 10 of 
the United States Code called or ordered to active duty for a period of 
more than 30 days, or who are regular active duty members of the Armed 
Forces reassigned to a different duty station for more than 30 days as 
a result of a military mobilization. The Secretary is issuing these 
waivers and modifications under the authority of Section 2(a) of the 
Higher Education Relief Opportunities for Students Act of 2001, Pub. L. 
107-122. Section 2(b) of Pub. L. 107-122 requires the Secretary to 
publish a notice in the Federal Register specifying the waivers or 
modifications of statutory or regulatory provisions applicable to the 
student financial aid programs under title IV of the Higher Education 
Act of 1965, as amended (HEA), that the Secretary believes are 
appropriate to assist affected individuals so that they are not placed 
in a worse position financially, in relation to their loans, by their 
service. Section 2(b)(1) of Pub. L. 107-122 further provides that 
section 437 of the General Education Provisions Act (20 U.S.C. 1232) 
and Section 553 of the Administrative Procedures Act (5 U.S.C. 553) do 
not apply to the contents of this notice.
    Section 2(c) of Pub. L. 107-122 requires the Secretary to provide 
an impact report to the Committee on Education and the Workforce of the 
House of Representatives and the Committee on Health, Education, Labor 
and Pensions of the Senate not later than 15 months after first 
exercising any authority to issue a waiver or modification under 
section 2(a) of Pub. L. 107-122. The report will describe the impact of 
any waivers or modifications issued pursuant to section 2(a) of Pub. L. 
107-122 on affected individuals and the programs under title IV of the 
HEA, and the basis for such determination,

[[Page 25822]]

and will include the Secretary's recommendations for changes to the 
statutory or regulatory provisions that were the subject of the waivers 
or modifications.

EFFECTIVE DATE: May 14, 2003.

FOR FURTHER INFORMATION CONTACT: Mr. George Harris, Senior Program 
Specialist, Office of Postsecondary Education, U.S. Department of 
Education, 1990 K Street, NW, (8th Floor) Washington, DC 20006. 
Telephone: (202) 502-7521.
    If you use a telecommunications device for the deaf (TDD), you may 
call the Federal Information Relay Service (FIRS) at 1-800-877-8339.
    Individuals with disabilities may obtain this document in an 
alternative format (e.g., Braille, large print, audiotape, or computer 
diskette) on request to the program contact persons listed under FOR 

SUPPLEMENTARY INFORMATION: The Secretary is waiving or modifying the 
following provisions of the HEA and regulations:

Federal Perkins Loan Program

    Under 34 CFR 674.33(d)(2) and section 464(e) of the HEA, there is a 
3-year cumulative limit on the length of forbearances that a Perkins 
loan borrower can receive. To assist Perkins Loan borrowers described 
in the SUMMARY section of this notice, the Secretary is waiving these 
statutory and regulatory requirements so that any forbearance based on 
a borrower's military service is excluded from this 3-year cumulative 

Federal Family Education Loan (FFEL) Program, Federal Direct Loan 
Program, and Federal Perkins Loan Program

    Depending on the loan program, borrowers may qualify for loan 
cancellation if they are employed full-time in specified occupations, 
such as teachers, childcare providers, or law enforcement officers, 
pursuant to sections 428J(b)(1), 428K(d)(1), 460(b)(1), and 
465(a)(2)(A)-(I) and (a)(3) of the HEA, 34 CFR 674.53(d), 674.55(a)(2), 
674.55(b)(5), 674.55(c)(2), 674.56(d)(1), 674.57(b)(1), 674.58(b), 
674.60(b), 34 CFR 682.215(d)(1), and 34 CFR 685.217(d)(1). Generally, 
borrowers must perform uninterrupted, otherwise qualifying service for 
a specified length of time (for example, one year) or for consecutive 
periods of time, such as 5 consecutive years, to be eligible for loan 
cancellation. For all borrowers described in the SUMMARY section of 
this notice, the Secretary is waiving the requirements in the various 
loan cancellation provisions that such periods of service be 
uninterrupted and/or consecutive. Loan holders should not consider the 
time that these borrowers are on active duty as an interruption in the 
required service for the borrower to receive a loan cancellation.

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 Internet at the following site: 
    To use PDF you must have Adobe Acrobat Reader, which is available 
free at this site. If you have questions about using PDF, call the U.S. 
Government Printing Office (GPO), toll free, at 1-888-293-6498; or in 
the Washington, DC, area at (202) 512-1530.
    You may also view this document in PDF at the following site: 

    Note: The official version of this 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: http://www.access.gpo.gov/nara/index.html.

(Catalog of Federal Domestic Assistance Numbers: 84.032 Federal 
Family Education Loan Program; 84.038 Federal Perkins Loan Program; 
and 84.268 William D. Ford Federal Direct Loan Program)

    Program Authority: 20 U.S.C. 1071, 1087a, 1087aa.

    Dated: May 8, 2003.
Sally L. Stroup,
Assistant Secretary, Office of Postsecondary Education.
[FR Doc. 03-11982 Filed 5-13-03; 8:45 am]