Memorandum for the membership

Negotiated rule making rapid response team loan issues

The U.S. Department of Education has established a negotiated rulemaking team to help create regulations supporting various aspects of the Federal student loan programs. CCA is pleased to announce that our nominee, Jeff Arthur, Director of Financial Aid at ECPI College of Technology, will serve as the primary negotiator for the coalition representing for-profit postsecondary education. Robert Collins of Apollo Group (the University of Phoenix) is the alternate negotiator.

The first round of meetings will take place next week, from December 12 to 14. The second set of meetings will most likely take place in late January 2007, with a third and perhaps final session most likely in early March. The department has stated they will try to maintain a schedule that will allow for a 60-day public comment period on the proposed regulation and publication of the final regulations by November 1, 2007.

The draft agenda items for this negotiating panel have been established. Negotiators may propose additional agenda items at the first session, or may request that issues on the draft agenda be removed; if there is consensus of the entire group, the changes will be made.

The draft agenda includes:

  • Entrance Counseling for Graduate/Professional PLUS Loan Borrowers
  • Identity Theft
  • Use of Preferred Lenders
  • Prohibited Inducements
  • Economic Hardship:
  • Income Contingent Repayment Formula and Family Size
  • Other Actions Appropriate Under the Higher Education Act
  • Retention of Disbursement Records Supporting Master Promissory Notes
  • Certification of E-Signatures on Master Promissory Notes Assigned to the Education Department
  • Use of True and Exact Copy of Death Certificates for Death Discharge
  • Retroactive Discharge for Permanently and Totally Disabled Borrowers
  • Lender National Student Loan Data System Reporting Timeframes
  • Assignment of Defaulted Loans
  • Eligibility Requirements for Child and Family Service Cancellation
  • Definition of “Reasonable and Affordable” Collection Costs
  • Technical Corrections

CCA is seeking members to participate on the Loan Issue Rapid Response Team. As in past negotiated rulemaking sessions, this team will help provide information to the CCA negotiating team, assist in defining positions important to the career college sector, and provide opinions on the topics being discussed. The Rapid Response Team will be contacted via email as needed with inquiries, and answers are usually requested back within one to two days. If you are interested in participating on the Loan Issue Rapid Response Team, please send an email to Tammy Halligan at and she will add you to the list.

We will keep you informed of the negotiated rulemaking process as it unfolds. If you have any questions in the meantime, please do not hesitate to contact me.

On a personal note, many of you have already heard that this will be my last negotiated rulemaking as CCA s General Counsel. After more than 14 years, I have decided it is time to move on to new challenges. I have committed to the Board that I will stay on until the end of April to see this neg reg through to its conclusion. I will always remember my years at CCA with fondness. I have been proud to represent members who are dedicated to improving the lives of their students, their communities, and this nation s workforce, and am grateful to all of you for your generosity in sharing your time, energy, and friendship.

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