Federal Family Education Loan Program; Proposed Rule DEPARTMENT OF EDUCATION

Zusammenfassung

The Secretary proposes to amend the Federal Family Education Loan (FFEL) Program regulations. The FFEL Program consists of the Federal Stafford, Federal Supplemental Loans for Students (SLS), Federal PLUS, and the Federal Consolidation Loan Programs. These amendments are needed to implement certain changes made to the Higher Education Act of 1965, as amended (HEA), by the Omnibus Budget Reconciliation Act of 1993, enacted August 10, 1993, and by the Higher Education Technical Amendments of 1993, enacted December 20, 1993. The proposed regulations would also amend the FFEL Program regulations to permit a lender to issue a ``master check'' to an institution for purposes of disbursing Federal Stafford loan proceeds to an institution, to prohibit a subsequent holder of a loan to bill the Secretary for any applicable interest benefits or special allowance on a loan for which origination fees have not been paid, and to limit the collection charges that may be assessed a borrower with a defaulted loan that is paid off through loan consolidation. The proposed regulations would implement section 428(n) of the HEA as amended by OBRA which requires a State to share the costs of defaulted Fede