11/7/13

ED Issues Final Rule for Title IV Student Loan Programs

The U.S. Department of Education (ED) recently posted the Final Rule for Title IV student loan programs. These regulations are effective July 1, 2014, and reflect changes made by the Student Aid and Fiscal Responsibility Act (SAFRA) and the statutory interest rate changes of P.L. 113-28, as well as changes designed to update, strengthen and clarify provisions related to:

• Deferment and forbearance
• Closed school discharge
• Perkins loan cancellation
• Reasonable and affordable payments for loan rehabilitation
• Administrative wage garnishment
• Participation rate index ceiling for schools with a single three-year cohort default rate over 40 percent

OCAP will share more in-depth analysis of these provisions as it becomes available.

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Mary Heid
Director for Default Prevention, Compliance & Training Services
OCAP Communications
P.O. Box 3000
Oklahoma City, OK 73101-3000
Communications@ocap.org
www.ocap.org