|DATE:||April 8, 2008|
|TO:||Loans Committee Members|
|SUBJECT:||Materials for the April 14-15 Negotiating Session|
Enclosed are most of the materials for the fourth negotiating session. We’ll post these files on our negotiated rulemaking website in a day or two, but feel free to share this information as you see fit. We anticipate providing the language for the not-for-profit loan holder definition shortly.
Included here is a single package of draft regulatory language in both pdf and MS Word formats. Our goal is to reach consensus on language to be published as an NPRM. Thus, you’ll notice that we’re provided amendatory language in the style of Federal Register instructions rather than “contextual” language. Also, this draft reflects changes the Team had previously agreed to.
You’ll notice in this draft for the Public Service Loan Forgiveness Program that we propose to incorporate the definition of public service employment into the definition of a public service organization. Thus, the basic determinant of borrower eligibility would be his or her employment by a public service organization rather than the nature of that employment. This new definition is on page 3 of the Public Service Loan Forgiveness draft.
We also incorporated changes to the calculation of special allowance payments with respect to accrued, unpaid interest on loans in the income based repayment plan. However, this modification would increase loan program costs, albeit by a small amount. We are working with our Budget Service to identify an offset.
Finally, you’ll notice that we have identical Direct Loan consolidation language in both the income based repayment and public service loan forgiveness packages. Of course, the published NPRM will not have this duplication.
See you on the 14th.
Proposed amendatory language
- Income-based repayment plan
MS Word (134K) | PDF (96K)
- Eligible Not-for-Profit Holder Definition
MS Word (46K) | PDF (27K)