[Federal Register Volume 59, Number 94 (Tuesday, May 17, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-11656]
[[Page Unknown]]
[Federal Register: May 17, 1994]
_______________________________________________________________________
Part III
Department of Education
_______________________________________________________________________
34 CFR Part 682
Federal Family Education Loan Program; Final Rule
DEPARTMENT OF EDUCATION
34 CFR Part 682
RIN 1840-AA96
Federal Family Education Loan Program
AGENCY: Department of Education.
ACTION: Final regulations.
-----------------------------------------------------------------------
SUMMARY: This document contains corrections and other technical changes
to the final regulations for the Federal Family Education Loan Program
which were published in the Federal Register on December 18, 1992 (57
FR 60280). The regulations govern the Federal Stafford Loan Program,
the Federal Supplemental Loans for Students (Federal SLS) Program, the
Federal PLUS Program and the Federal Consolidation Loan Program,
collectively referred to as the Federal Family Education Loan Program.
EFFECTIVE DATE: These regulations take effect either 45 days after
publication in the Federal Register or later if the Congress takes
certain adjournments, with the exception of Sec. 682.209. Section
682.209 will become effective after the information collection
requirements contained in this section have been submitted by the
Department of Education and approved by the Office of Management and
Budget under the Paperwork Reduction Act of 1980. A document announcing
the effective date will be published later in the Federal Register.
FOR FURTHER INFORMATION CONTACT: Pamela Moran or Patricia Beavan,
Policy Section, Loans Branch, Policy Development Division, Policy,
Training, and Analysis Service, Department of Education, 400 Maryland
Avenue SW., (room 4310, ROB-3) Washington, DC 20202. Telephone 202-732-
8242. Individuals who use a telecommunication 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.
SUPPLEMENTARY INFORMATION: The final regulations make corrections to
the final regulations published on December 18, 1992, which contained
several self-implementing provisions of the Higher Education Amendments
of 1992 (1992 Amendments) (enacted July 23, 1992) (Pub. L. 102-325).
The regulations also include two changes made to those self-
implementing provisions by the Higher Education Technical Amendments of
1993 (Technical Amendments of 1993) (Pub. L. 102-208) (enacted December
20, 1993).
Waiver of Proposed Rulemaking
It is the practice of the Secretary to offer interested parties the
opportunity to comment on proposed regulations. However, with the
exception of two changes made to reflect self-implementing provisions
of the Technical Amendments of 1993, all other provisions in this
regulation reflect corrections to the Federal Family Education Loan
Program (FFEL) regulations published on December 18, 1992. The FFEL
regulations published on December 18, 1992 were the subject of
extensive public comment prior to the publication. The Secretary has
also consulted with and received extensive written comments from
members of the higher education community in the development of the
corrections to the December 18, 1992 regulations and believes that
public comment on these technical corrections for publication of
regulations does not warrant the solicitation of further public
comment. Moreover, the Secretary believes that it is important to have
these technical corrections reflected in the Department's regulations
as soon as possible. Therefore, the Secretary finds that such a
solicitation would be unnecessary and contrary to the public interest
under 5 U.S.C. 553(b)(B).
List of Subjects in 34 CFR Part 682
Administrative practice and procedures, Colleges and universities,
Education, Loan programs--education, Reporting and recordkeeping
requirements, Student aid, Vocational education.
Dated: May 9, 1994.
Richard W. Riley,
Secretary of Education.
The Secretary amends part 682 of title 34 of the Code of Federal
Regulations as follows:
PART 682--FEDERAL FAMILY EDUCATION LOAN (FFEL) PROGRAM
1. The authority citation for part 682 continues to read as
follows:
Authority: 20 U.S.C. 1071 to 1087, unless otherwise noted.
Sec. 682.100 [Amended]
2. In Sec. 682.100, paragraph (a)(3), in the first sentence, add
the word ``undergraduate'' before the word ``students'', in the second
sentence, add the parenthetical phrase ``(then known as Auxiliary Loans
to Assist Students (ALAS))'', after the word ``PLUS''; in paragraph
(a)(4), remove ``PLUS'' after ``SLS'', and add, in its place, ``ALAS'';
remove ``part C'', and add, in its place, ``part A'', after the word
``Act'', add the phrase ``, Higher Education Assistance Loans (HEAL)
authorized by subpart I of part A of Title VII of the Health Services
Act,'', remove ``borrowers whose loans were made after October 17,
1986'', and add, in its place, ``loans, or married couples who have a
combined indebtedness of at least $7,500 under these programs''.
Sec. 682.10 [Amended]
3. In Sec. 682.101, paragraph (c), in the second sentence, add the
word ``undergraduate'' before the word ``students'', in the third
sentence, remove ``Students borrowers'', and add, in its place,
``Borrowers'', add ``HEAL, ALAS,'' after the word ``HPSL'', remove
``or'' after ``Plus loans'', and add a comma in its place, remove the
phrase ``borrowed after October 16, 1986'', and add, in its place, ``,
or married couples who have a combined indebtedness of at least $7,500
under these programs''.
Sec. 682.102 [Amended]
4. In Sec. 682.102, in paragraph (d), after the second sentence,
add a new sentence to read ``In the case of a married couple seeking a
Consolidation loan, only the holders for one of the applicants must be
contacted for consolidation.''; in paragraph (e)(3), in the second
sentence, add ``, but who has not yet entered repayment on the Stafford
loan,'' after the phrase ``Stafford loan borrower''; in paragraph
(e)(4), in the first sentence, remove ``immediately upon disbursement
of the loan'', and add, in its place, ``on the day the loan is
disbursed''; in paragraph (e)(5), after ``Generally, the'', add,
``repayment period for a Consolidation loan begins on the day the loan
is disbursed. The''.
Sec. 682.200 [Amended]
5. In Sec. 682.200 paragraph, the definition of ``Co-maker'' is
revised; in the definition of ``Default'', add ``or Consolidation''
after ``PLUS''; in the definition of ``Estimated financial
assistance'', in paragraph (1)(v), add ``to the extent funding is
available,'', after ``campus-based aid,'', in paragraph (2), ``--(i)''
is added after ``include'', paragraphs (2)(i), (2)(ii), and (2)(iii)
are redesignated as paragraphs (2)(i)(A), (2)(i)(B), and (2)(i)(C)
respectively, paragraph (2)(iv) is redesignated as paragraph (2)(ii),
in redesignated paragraph (2)(i)(A), add the word ``Nonsubsidized''
before the word ``Stafford'', in redesignated paragraph (2)(i)(B), add
the word ``or'' after the semicolon; in the definition of ``Half-time
student'', in the first sentence, remove ``in a participating school'',
and add, in its place, ``in an eligible institution''; in the
definition of ``Origination fee'', after the second sentence, add a new
sentence to read ``The lender must pass this fee on to the SLS or PLUS
borrower.''; in the definition of ``Period of Enrollment'', in the
second sentence, remove the word ``normally'', and add, in its place,
``generally'', before the period, add the parenthetical phrase ``(e.g.,
semester, trimester, quarter, length of the student's program or
academic year)''; in the definition of ``Repayment period'', in
paragraph (1), before the word ``date'', remove the word ``that'', and
add, in its place, the word ``the'', after the word ``date'', add ``the
first payment of principal is due from the borrower'', paragraph (2)(i)
is revised, in paragraph (2)(ii), after the word ``period'', add the
phrase, ``for payment of principal'', remove the word ``ending'', and
add, in its place, the word ``ends'', at the end of the paragraph, add
a new sentence to read, ``Interest accrues and is due and payable from
the date of the first disbursement of the loan.''; in the definition of
``Stafford Loan Program'', in the second sentence, remove the words
``An unsubsidized'', and add, in their place, the words ``A
nonsubsidized'' to read as follows:
Sec. 682.200 Definitions.
* * * * *
(b) * * *
Co-maker. One of two parents who are joint borrowers on a PLUS
loan, each of whom is eligible to borrow, or one of two individuals who
are joint borrowers on a Consolidation loan. All co-makers on a loan
are jointly and severally liable for repayment of the loan.
* * * * *
Repayment period.
(1) * * *
(2)(i) For PLUS loans, the repayment period for payment of
principal begins on the date of the last disbursement of the loan and
ends no later than 10 years from that date, exclusive of any period of
deferment or forbearance. Interest on the loan accrues and is due and
payable from the date of the first disbursement of the loan.
* * * * *
Sec. 682.201 [Amended]
6. In Sec. 682.201, in paragraph (a), after ``if the student'', add
``who is enrolled or accepted for enrollment on at least a half-time
basis at a participating school''; in paragraph (a)(2)(i), after ``need
for a'', add the word ``subsidized''; in paragraph (b)(1), after the
word ``dependent'', add ``undergraduate''; after the word ``student'',
add ``who is enrolled or accepted for enrollment on at least a half-
time basis at a participating school and'', before the semicolon, add
``and the requirement of paragraph (a)(6) of this section''; in
paragraph (b)(6), remove the cross reference to paragraphs ``(a)(5) and
(a)(6)'', and add, in its place ``(a)(4) and (a)(5)''; in paragraph
(c)(1)(i), remove ``under this part'' and add, in its place ``under
Sec. 682.100''; paragraph (c)(1)(ii) is revised, new paragraphs (c)(1)
(iii) through (vi) are added, paragraph (c)(2)(iii) is revised, and a
new paragraph (c)(3) is added to read as follows:
Sec. 682.201 Eligible borrowers.
* * * * *
(c) * * *
(1) * * *
(ii) Has ceased at least half-time enrollment at a school;
(iii) Is, on the loans being consolidated--
(A) In a grace period preceding repayment;
(B) In repayment status; or
(C) In a default status and has made satisfactory repayment
arrangements on the loan;
(iv) Certifies that no other application for a Consolidation loan
is pending;
(v) Agrees to notify the holder of any change in address; and
(vi) Certifies that the lender holds an outstanding loan of the
borrower which is being consolidated or that the borrower has
unsuccessfully sought a loan from the holder of the outstanding loans.
(2) * * *
(iii) Meets the requirements of paragraph (c)(1) of this section,
except that their combined indebtedness may not be less than $7,500 on
loans eligible for consolidation under Sec. 682.100 and only one
borrower must have met the requirements of paragraphs (c)(1)(iv), (v),
and (vi) of this section.
(3) A borrower's eligibility to receive a Consolidation loan
terminates upon receipt of a Consolidation loan except--
(i) With respect to additional student loans received after the
date the Consolidation loan is made; or
(ii) Loans received prior to the date the Consolidation loan was
made may be added to the Consolidation loan during the 180-day period
after the making of the Consolidation loan.
Sec. 682.202 [Amended]
7. In Sec. 682.202, paragraph (a)(1)(i)(C), before the semi-colon,
add ``but before July 1, 1988''; in paragraph (a)(1)(i)(D), after
``July 1, 1988'', add ``and for which the first disbursement is made
before October 1, 1992,''; in paragraph (a)(1)(ii), after ``the rate'',
``charged on'' is removed and add, in its place ``applicable to''; in
paragraph (a)(1)(iii), before ``the applicable interest rate'', add ``,
for a Stafford loan for which the first disbursement is made before
October 1, 1992,''; in paragraph (a)(1)(iv), before ``the applicable''
add ``, for a Stafford loan for which the first disbursement is made
before October 1, 1992,''; in paragraph (a)(1)(v), the cross-reference
``(a)(1)(i)(C)'' is removed, and ``(a)(1)(i)(F)'' is added in its
place; in paragraph (a)(1)(vii), before the word ``interest'', add the
word ``applicable''; in paragraph (a)(1)(vii)(A), the cross- reference
``(a)(1)(iv)'' is removed, and ``(a)(1)(viii)'' is added, in its place;
in paragraph (a)(1)(ix), ``December 31'' is removed, and ``the date the
lender credits the adjustment'' is added in its place; paragraph (b)(4)
is revised; in paragraph (b)(5), ``, SLS, PLUS, or Consolidation'' is
added after ``Stafford'', in paragraph (c)(5), ``the portion of'' is
removed, ``any portion'' is removed, and ``each disbursement'' is added
in its place; paragraph (c)(5)(i) is removed, paragraph (c)(5)(ii) is
redesignated as paragraph (c)(5)(i), at the end of redesignated
paragraph (c)(5)(i) the word ``or'' is removed, paragraph (c)(5)(iii)
is redesignated as paragraph (c)(5)(ii), at the end of redesignated
paragraph (c)(5)(ii) the period is removed, and ``; or'' is added in
its place; and new paragraphs (c)(5)(iii) and (h) are added to read as
follow:
Sec. 682.202 Permissible charges by lenders to borrowers.
* * * * *
(b) * * *
(4) Under the SLS and PLUS programs, the lender shall require the
borrower to pay on a monthly, or no more frequently than quarterly, or
with the borrower's written consent, capitalize on a quarterly basis
interest that has accrued during all authorized periods of deferment.
* * * * *
(c) * * *
(5) * * *
(iii) Not released from the restricted account maintained by the
school for loan proceeds disbursed by electronic funds transfer in
accordance with Sec. 682.207(b)(1)(ii)(B).
* * * * *
(h) Special allowance. Under Sec. 682.412(c), a lender may charge a
borrower the amount of special allowance paid the Secretary on behalf
of the borrower.
Sec. 682.205 [Amended]
8. In Sec. 682.205, in paragraph (c), remove ``60'' and add ``30'',
in its place; in paragraph (d) introductory text, remove ``capitalizing
--'', and add, in its place, ``principal and interest, interest only
and capitalized interest.'', and paragraphs (d)(1) and (d)(2) are
removed.
9. In Sec. 682.206, paragraph (e)(1), after ``FISL'', add ``,
SLS''; and a new paragraph (e)(3) is added to read as follows:
Sec. 682.206 Due diligence in making a loan.
* * * * *
(e) * * *
(3) A Federal Consolidation loan may be made to two eligible
spouses provided both borrowers agree to be jointly and severally
liable for repayment of the loan as co-makers.
* * * * *
Sec. 682.207 [Amended]
10. In Sec. 682.207, in paragraph (d)(2)(i)(A), remove the word
``charges'' and add, in its place, the word ``costs''.
Sec. 682.209 [Amended]
11. In Sec. 682.209, in paragraph (a)(1), remove ``PLUS loan
disbursed in one installment or a''; in paragraph (a)(2)(i), in the
first sentence, remove ``disbursed in more than one installment'',
remove the word ``first'' before the word ``disbursement'' and add, in
its place the word ``last'', at the end of the second sentence, add a
new sentence to read, ``Interest accrues and is due and payable from
the date of the first disbursement of the loan.''; in paragraph
(a)(2)(ii), at the end of the first sentence, add a new sentence to
read ``Interest accrues and is due and payable from the date of the
first disbursement of the loan.''; in paragraph (a)(3)(ii)(C), remove
the word ``or'', in paragraph (a)(3)(ii)(D), remove the period, and
add, in its place ``; or'', and add a new paragraph (a)(3)(ii)(E); in
paragraph (b)(1), in the second sentence, remove ``Except as provided
in paragraph (b)(2) of this section, the'' and add, in its place,
``The'', before the word ``first'', add the word ``amount'', after
``outstanding principal'' remove the comma and add, in its place, a
period, and remove the remainder of the sentence; in paragraph (b)(2),
in the first sentence, after the word ``installments'', add ``by
advancing the next payment due date,''; in paragraph (c)(1)(i), remove
``paragraphs (c)(1) (ii) and (iii)'' and add, in its place ``paragraph
(c)(1)(ii)''; in paragraph (h)(4)(ii), after the word ``unless'', add
``, with respect to any loan being consolidated,'' to read as follows:
Sec. 682.209 Repayment of a loan.
* * * * *
(a) * * *
(3) * * *
(iii) * * *
(E) An additional 30 days beyond the periods specified in
paragraphs (a)(3)(ii)(A)-(a)(3)(ii)(D) of this section in order for the
lender to comply with the required deadlines contained in
Sec. 682.205(c)(1).
* * * * *
Sec. 682.210 [Amended]
12. In Sec. 682.210, in paragraph (a)(3)(ii), after the word
``loan'', add ``for which the application was received by an eligible
lender on or after January 1, 1993''; in paragraph (a)(8), remove the
phrase ``as to that loan''; in paragraph (b)(6) introductory text,
after the word ``when'', remove ``the'' and add, in its place, ``a'';
in paragraph (c)(3), before ``SLS'', remove ``an'' and add, in its
place ``a Stafford,'', after the word ``application'', add ``or other
form certified by the school or for multiple holders of a borrower's
loans, shared data from the Student Status Confirmation Report,'',
after the word ``outstanding'', add ``Stafford,'', and remove ``that is
held by the lender''.
Sec. 682.211 [Amended]
13. In Sec. 682.211, paragraph (d), in the second sentence, remove
the words ``repayment obligation'' and add, in their place, the words
``agreement to repay the debt''; in paragraph (g), remove ``12-month
intervals'' and add, in its place ``intervals not to exceed 12
months,''.
Sec. 682.300 [Amended]
14. In Sec. 682.300, paragraph (a), in the first sentence, after
the word ``loan'', add ``and, except for that portion of the loan that
repaid a HEAL loan, on a Consolidation loan''; in paragraph (b)(2)(ii),
remove the phrase ``that represents a portion of the loan''; in
paragraph (b)(2)(ii)(A), remove the word ``negotiated'' and add, in its
place the word ``cashed''.
Sec. 682.302 [Amended]
15. In Sec. 682.302, in paragraph (d)(1)(vi)(A), remove the word
``negotiated'' and add, in its place, the word ``cashed''; in paragraph
(d)(1)(vii), after ``returns a claim'', add ``submitted by the deadline
specified in (d)(1)(v) of this section''.
Sec. 682.401 [Amended]
16. In Sec. 682.401, in paragraph (b)(5)(ii), remove ``432(h)(3)''
and add, in its place, ``432(h)(2)''; in paragraph (b)(7), in the first
sentence, remove ``Sec. 682.404(i)(2)'' and add, in its
place,''Sec. 682.404(h)(2)''; in paragraph (b)(8), in the first
sentence, remove ``Sec. 682.404(i)(2)'' and add, in its place,
``Sec. 682.404(h)(2)''; in paragraph (b)(9)(vi), remove ``all or part
of''; in paragraph (b)(9)(vi)(A), remove ``, or the portion'', remove
``a portion of a loan disbursed in more than one installment'' and add,
in its place, the phrase ``each disbursement of a loan''; paragraphs
(b)(14) through (b)(22) are redesignated as paragraphs (b)(15) through
(b)(23), respectively; a new paragraph (b)(14) is added; in
redesignated paragraph (b)(16)(i) after ``(i)'', remove the word
``The'' and add in its place ``Except in the case of a loan assignment
that does not result in a change in the identity of the party to whom
payments must be made, the'' to read as follows:
Sec. 682.401 Basic program agreement.
* * * * *
(b) * * *
(14) Guarantee agency verification of default data. A guarantee
agency shall respond to an institution's written request for
verification of its default rate data for purposes of an appeal
pursuant to 34 CFR 668.15(g)(1)(i) within 15 working days of the date
the agency receives the institution's written request pursuant to 34
CFR 668.15(g)(7), and simultaneously provide a copy of that response to
the Secretary's designated Department official.
* * * * *
Sec. 682.402 [Amended]
17. In Sec. 682.402, paragraph (a)(2), after the word ``co-
makers'', add the phrase ``or a Consolidation loan was obtained jointly
by married borrowers''; in paragraph (g)(3)(ii) remove the cross-
reference to ``(h)(2)'' and add, in its place, ``(g)(2)''; in paragraph
(k), remove the cross- reference to ``11 U.S.C. 523(a)(8)(B)'' and add,
in its place, ``11 U.S.C. 523(a)(8)(A)''; in paragraph (k)(2), after
the word ``deferment'', add, ``as provided in Sec. 682.210(a)(5)''.
Sec. 682.404 [Amended]
18. In Sec. 682.404, in paragraph (a)(5), after ``section,'' add
``upon request of the school,''; in paragraph (h), after the word
``particular'', and add the word ``participating''.
19. In Sec. 682.406, paragraph (a)(3) is revised to read as
follows:
Sec. 682.406 Conditions of reinsurance coverage.
(a) * * *
(3) The lender provided--
(i) An accurate collection history to the guaranty agency with the
default claim filed on the loan sufficient to support guarantor review
for claim payment showing that the lender exercised due diligence in
collecting the loan through collection efforts meeting the requirements
of Sec. 682.411, including collection efforts against each endorser;
and
(ii) A payment history that supports the claim payment amount.
* * * * *
Sec. 682.410 [Amended]
20. In Sec. 682.410, in paragraph (b)(6)(ii)(A), in the first
sentence, remove from ``, or, in the case'' to the end of the sentence,
in the second sentence, after the word ``days'', add ``during the
period specified in paragraph (5)(iv)(B) of this section,''; in
paragraph (b)(6)(ii)(C), in the first sentence, after ``paragraphs
(b)(6)(iii) or (iv) of this section'', add ``or, in the case of a
borrower whom the agency locates through the use of skip-tracing under
paragraph (b)(6)(xii) of this section,'', after ``paragraphs
(b)(6)(iii)-(vii) of this section'', add ``if the written notice
described in paragraph (b)(5)(ii) of this section has been sent,'',
remove ``60 day'' and add, in its place, ``60 days'', before the
period, add ``or receipt of confirmation of the borrower's address, as
applicable''; in paragraph (b)(6)(iii)(A) before the semicolon, add ``,
unless the notice was previously sent pursuant to paragraph (b)(5)(ii)
of this section''.
Sec. 682.411 [Amended]
21. In Sec. 682.411, paragraph (a), remove the cross reference
``(c)-(l)'', and add, in its place, ``(c)-(m)''; in paragraph (b),
after the heading, add ``(1)'', at the end of the second sentence,
before the period, add ``, except as provided in
Sec. 682.209(a)(3)(ii)(E)''; a new paragraph (b)(2) is added; paragraph
(d)(5) is removed; in paragraph (f), remove the cross- reference to
``(f)(1)'', and add, in its place, ``(l)(1)''; in paragraph (g)(3),
after ``(k)'', add ``(1) through (k)(3) and (k)(5)''; in paragraph
(g)(4), remove the cross-reference to ``(l)(1) (A) or (B)'' and add, in
its place, ``(l)(1) (i) or (ii)''; in paragraph (i)(2)(ii), at the end
of the paragraph, remove the word ``or''; paragraph ``(i)(2)(iii)'' is
redesignated as paragraph ``(i)(2)(iv)'', and a new paragraph
``(i)(2)(iii)'' is added; in paragraph (k)(3), after ``(g)'', add
``(1)'', after the word ``address'', add ``or telephone number''; in
paragraph (l)(2), remove the word ``address'' and add, in its place,
``telephone number'' to read as follows:
Sec. 682.411 Due diligence by lenders in the collection of guaranty
agency loans.
* * * * *
(b) * * *
(2) At no point during the periods specified in paragraphs (c) and
(d) of this section may the lender permit the occurrence of a gap in
collection activity, as defined in paragraph (i) of this section, of
more than 45 days (60 days in the case of a transfer).
* * * * *
(i) * * *
(2) * * *
(iii) The day on which the lender receives written communication
from the borrower relating to his or her account; or
* * * * *
Sec. 682.413 [Amended]
22. In Sec. 682.413, in paragraph (c)(6), remove ``that violate
Sec. 682.206(f)(1)'', and add, in its place, ``for which the
certification required under Sec. 682.206(f)(1) is not available''.
Sec. 682.604 [Amended]
23. In Sec. 682.604, in paragraph (c)(3)(i), after the word
``student'', add ``or parent''; in paragraph (d)(3), after the word
``made'', add ``, or a registered student withdraws or is expelled
prior to the first day of classes of the period of enrollment for which
the loan is made''; in paragraph (d)(4), after the word ``If'', remove
``a registered student withdraws or is expelled prior to the first day
of classes of the period of enrollment for which the loan is made or
fails to attend school during that period, or if'', after ``reason to
document that'' remove the word ``the'' and add, in its place, ``a
registered'', after ``attended school during'', remove the words ``that
period'', and add, in their place, ``the period of enrollment for which
the loan is made'', after the word ``school'', add ``, must determine
the student's withdrawal date as required under Sec. 682.605(b)(1)(ii),
and by the deadline described under Sec. 682.605(b)(1)(A) and (B)''; in
paragraph (e)(2), after the word ``disbursement'', add ``made by the
lender under Sec. 682.207(d)''; paragraphs (e)(2)(i), (e))2)(ii), and
(e)(2)(iii) are redesignated as paragraphs (e)(2)(ii), (e)(2)(iii), and
``(e)(2)(iv) respectively, a new paragraph (e)(2)(i) is added; at the
end of redesignated paragraph (e)(2)(ii) remove the word ``or''; at the
end of redesignated paragraph (e)(2)(iii) remove the period and add, in
its place, ``; or''; in paragraph (e)(4), in the first sentence, after
the word ``If'' remove ``a disbursement is received by the school
within 60 days after the earlier of the dates described in paragraph
(e)(1) of this section, if'', remove the word ``charges'' and add, in
its place, ``costs''; in paragraph (e)(4)(i), after the words ``Return
the'', add ``balance of the''; in paragraph (e)(4)(i)(B), remove the
word ``correct'' and add, in its place, ``corrected''; in paragraph
(e)(4)(ii), remove the word ``charges'', and add, in its place
``costs'' to read as follows:
Sec. 682.604 Processing the borrower's loan proceeds and counseling
borrowers.
* * * * *
(e) * * *
(2) * * *
(i) Deliver the proceeds of a late disbursement to a student
borrower whose loan application was certified after the borrower ceased
enrollment on at least a half-time basis;
* * * * *
24. In Sec. 682.801, paragraph (d), after the semicolon, remove
``and''; and add a new paragraph ``(f)'', to read as follows:
Sec. 682.801 Provisions required in Plan.
* * * * *
(f) The Authority shall not purchase student loans at a premium
amounting to more than one percent of the unpaid principal amount
borrowed plus interest accrued to the date of acquisition.
Appendix B--[Amended]
25. In Appendix B, introductory text remove the word ``model'' and
add, in its place, ``required''.
Appendix D--[Amended]
26. In Appendix D, under the heading ``Introduction'', in the
second paragraph, in the sixth sentence, remove the cross- references
to ``682.406(a)(2), (a)(4), and 682.413(b)(1)'' and add, in their
place, ``682.406(a)(3), (a)(5), and 682.413(b)''; in the third
paragraph, in the first sentence, remove ``45-day'', and add, in its
place, ``90-day''; remove the cross-reference to ``Sec. 682.406(a)(4)''
and add, in its place, ``Sec. 682.406(a)(3) and (a)(5)''; in the fourth
sentence, remove the cross-reference to ``682.406(a)(5)'' and add, in
its place, ``682.406(a)(7)''; in the fifth sentence, remove the cross-
reference to ``682.406(a)(6)'' and add, in its place,
``682.406(a)(7)''; in I. WAIVER POLICY, A. Definitions, in the
definition of ``Gap'', under the Note, in the second sentence, remove
``For'' and add, in its place, ``This definition applies to''; remove
the comma after ``1986'', and add, in its place, a period and ``For
such loans,''; in B. General, in paragraph 5., in the second sentence,
remove the sentence beginning ``In that case'' to the end of the
paragraph, and add, in its place, ``Guarantors must review the due
diligence for the 180-day period prior to the default date ensuring the
due date of the first payment not later made is the correct payment due
date for the borrower.''; in E. Cures for Timely Filing Violations and
Certain Due Diligence Violations, in paragraph 2. Death, Disability,
and Bankruptcy claims., in the second paragraph, in the third sentence,
remove ``treat the loan as in default'' and add, in its place, ``return
the borrower to the appropriate status that existed prior to the filing
of the bankruptcy claim''; in II. DUE DATE OF FIRST PAYMENT, in the
first paragraph, in the first sentence, remove the citation to
``Section 682.411(b)'', and add, in its place, ``Section
682.411(b)(1)''; at the end of the first paragraph, add the
parenthetical phrase ``(Unless the lender establishes the first day of
repayment under Sec. 682.209(a)(3)(ii)(E).)''; in the second paragraph,
in the fifth sentence, add after ``notice.'', the parenthetical phrase
``(Unless the lender establishes the first day of repayment under
Sec. 682.209(a)(3)(ii)(E).)''; in the second paragraph, in the last
sentence, remove ``20'' and add, in its place, ``30''; after the last
paragraph, add a new paragraph to read, ``Please Note: References to
the ``65th day after receipt of the notice'' and ``66th day'' in the
preceding paragraphs should be amended to read ``95th day'' and ``96th
day'' respectively for lenders subject to Sec. 682.209(a)(3)(ii)(E).'';
in ``III. QUESTIONS AND ANSWERS'', at the end of the first paragraph,
add a note to read, ``Note: The answer to questions 1 and 4 are
applicable only to loans subject to Sec. 682.411 of the FFEL and PLUS
program regulations published on November 10, 1986.''; in the second
paragraph, before ``Q'', add ``1.''; in the fourth paragraph, before
``Q'', add ``2.''; in the sixth paragraph, before ``Q'', add ``3.''; in
the eighth paragraph, before ``Q'', add ``4.''.
[FR Doc. 94-11656 Filed 5-16-94; 8:45 am]
BILLING CODE 4000-01-P