[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]
[DOCID:fr28my99-23]
[[Page 29181]]
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Part V
Department of Education
_______________________________________________________________________
34 CFR Part 685
William D. Ford Federal Direct Loan Program; Final Rule
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DEPARTMENT OF EDUCATION
34 CFR Part 685
RIN 1840-AC57
William D. Ford Federal Direct Loan Program
AGENCY: Department of Education.
ACTION: Final regulations.
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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
paragraph.
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
annually.
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
requirements.
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:
http://ocfo.ed.gov/fedreg.htm
http://www.ed.gov/news.html
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:
http://www.access.gpo.gov/nara/index.html
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:
PART 685--WILLIAM D. FORD FEDERAL DIRECT LOAN PROGRAM
1. The authority citation for part 685 continues to read as
follows:
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]
BILLING CODE 4000-01-U