Student Assistance General Provisions, Federal Perkins Loan Program, Federal Family Education Loan Program, William D. Ford Federal Direct Loan Program, and Teacher Education Assistance for College and Higher Education Grant Program; Corrections, 34047-34049 [2018-15260]
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Federal Register / Vol. 83, No. 139 / Thursday, July 19, 2018 / Rules and Regulations
34047
TABLE
Swim Across America Safety Zone 33 CFR 165.160 (3.1) .....................
Under the provisions of 33 CFR
165.160, vessels may not enter the safety
zone unless given permission from the
COTP or a designated representative.
Spectator vessels may transit outside the
safety zones but may not anchor, block,
loiter in, or impede the transit of other
vessels. The Coast Guard may be
assisted by other Federal, State, or local
law enforcement agencies in enforcing
this regulation.
This document is issued under
authority of 33 CFR 165.160(a) and 5
U.S.C. 552(a). In addition to this notice
of enforcement in the Federal Register,
the Coast Guard will provide mariners
with advanced notification of
enforcement periods via the Local
Notice to Mariners and marine
information broadcasts.
If the COTP determines that a safety
zone need not be enforced for the full
duration stated in this document, a
Broadcast Notice to Mariners may be
used to grant general permission to
enter the safety zone.
Dated: June 28, 2018.
J.P. Tama,
Captain, U.S. Coast Guard, Captain of the
Port New York.
[FR Doc. 2018–15441 Filed 7–18–18; 8:45 am]
BILLING CODE 9110–04–P
DEPARTMENT OF EDUCATION
34 CFR Part 685
[Docket ID ED–2017–OPE–0112]
RIN 1840–AD28
sradovich on DSK3GMQ082PROD with RULES
Student Assistance General
Provisions, Federal Perkins Loan
Program, Federal Family Education
Loan Program, William D. Ford Federal
Direct Loan Program, and Teacher
Education Assistance for College and
Higher Education Grant Program;
Corrections
Office of Postsecondary
Education, Department of Education.
ACTION: Final rule; correcting
amendments.
AGENCY:
In the Federal Register of
February 14, 2018, the Department of
Education (Department) published a
SUMMARY:
VerDate Sep<11>2014
16:04 Jul 18, 2018
Jkt 244001
• Location: Participants will swim between Glenn Cove and
Larchmont, New York and an area of Hempstead Harbor between
Glen Cove and the vicinity of Umbrella Point. This Safety Zone includes all waters within a 100-yard radius of each participating swimmer.
• Date: July 28, 2018.
• Time: 5:30 a.m.–12:00 p.m.
final rule (the delay rule) delaying, until
July 1, 2019, the effective date of
selected provisions of the final
regulations entitled Student Assistance
General Provisions, Federal Perkins
Loan Program, Federal Family
Education Loan Program, William D.
Ford Federal Direct Loan Program, and
Teacher Education Assistance for
College and Higher Education Grant
Program (the 2016 final regulations),
published in the Federal Register on
November 1, 2016. This rule
inadvertently omitted regulations from
the list in the DATES section of
regulations for which the effective date
is delayed. This document removes the
regulations that we intended to delay
from the text of the Code of Federal
Regulations and specifies July 1, 2019 as
their effective date.
DATES: This rule is effective July 19,
2018 except for amendatory instruction
3 which is effective July 1, 2019.
FOR FURTHER INFORMATION CONTACT:
Annmarie Weisman, U.S. Department of
Education, 400 Maryland Avenue SW,
Mail Stop 294–20, Washington, DC
20202–6244. Telephone: (202) 453–
6712. Email: annmarie.weisman@
ed.gov.
If you use a telecommunications
device for the deaf or a text telephone,
call the Federal Relay Service, toll free,
at 1–800–877–8339.
SUPPLEMENTARY INFORMATION: In the
delay rule (83 FR 6458), the list of
regulations in the DATES section in the
first column on page 6459, for which the
effective date is delayed until July 1,
2019, inadvertently excluded
§ 685.300(b)(11), (b)(12), and (d) through
(i). Those regulations were properly
included in the list of regulations for
which the effective date is delayed in
the body of the document (in the third
column of page 6459) and discussed
elsewhere in the document. However, to
effectuate this correction and restore the
Code of Federal Regulations to properly
reflect the delay, we are publishing
amendatory language that will remove
these provisions.
Waiver of Proposed Rulemaking
In accordance with the
Administrative Procedure Act, 5 U.S.C.
PO 00000
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Fmt 4700
Sfmt 4700
553, it is the Secretary’s practice to offer
interested parties the opportunity to
comment on proposed regulations.
However, the actions in this document
are merely to correct a technical error,
and thus, the Secretary has determined
that publication of a proposed rule is
unnecessary under 5 U.S.C. 553(b)(B).
Accessible Format: Individuals with
disabilities can obtain this document in
an accessible format (e.g., braille, large
print, audiotape, or compact disc) on
request to the contact person listed
under FOR FURTHER INFORMATION
CONTACT.
Electronic Access to This Document:
The official version of this document is
the document published in the Federal
Register. You may access the official
edition of the Federal Register and the
Code of Federal Regulations via the
Federal Digital System at: www.gpo.gov/
fdsys. At this site you can view this
document, as well as all other
documents of this Department
published in the Federal Register, in
text or Portable Document Format
(PDF). To use PDF you must have
Adobe Acrobat Reader, which is
available free at the site.
You may also access documents of the
Department published in the Federal
Register by using the article search
feature at: www.federalregister.gov.
Specifically, through the advanced
search feature at this site, you can limit
your search to documents published by
the Department.
List of Subjects in 34 CFR Part 685
Administrative practice and
procedure, Colleges and universities,
Loan programs—education, Reporting
and recordkeeping requirements,
Student aid, Vocational education.
Dated: July 12, 2018.
Betsy DeVos,
Secretary of Education.
For the reasons discussed in the
preamble, the Secretary of Education
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:
■
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19JYR1
34048
Federal Register / Vol. 83, No. 139 / Thursday, July 19, 2018 / Rules and Regulations
Authority: 20 U.S.C. 1070g, 1087a, et seq.,
unless otherwise noted.
§ 685.300
[Amended]
2. Effective July 19, 2018, § 685.300 is
amended by:
■ a. Removing paragraph (b)(11) and
redesignating paragraph (b)(12) as
paragraph (b)(11).
■ b. Removing paragraphs (d) through
(i).
■ 3. Effective July 1, 2019, § 685.300 is
amended by:
■ a. Redesignating paragraph (b)(11) as
paragraph (b)(12).
■ b. Adding a new paragraph (b)(11).
■ c. Adding paragraphs (d) through (i).
The additions read as follows:
■
§ 685.300 Agreements between an eligible
school and the Secretary for participation in
the Direct Loan Program.
sradovich on DSK3GMQ082PROD with RULES
*
*
*
*
*
(b) * * *
(11) Comply with the provisions of
paragraphs (d) through (i) of this section
regarding student claims and disputes.
*
*
*
*
*
(d) Borrower defense claims in an
internal dispute process. The school
will not compel any student to pursue
a complaint based on a borrower
defense claim through an internal
dispute process before the student
presents the complaint to an accrediting
agency or government agency
authorized to hear the complaint.
(e) Class action bans. (1) The school
will not seek to rely in any way on a
predispute arbitration agreement or on
any other predispute agreement with a
student who has obtained or benefited
from a Direct Loan, with respect to any
aspect of a class action that is related to
a borrower defense claim, including to
seek a stay or dismissal of particular
claims or the entire action, unless and
until the presiding court has ruled that
the case may not proceed as a class
action and, if that ruling may be subject
to appellate review on an interlocutory
basis, the time to seek such review has
elapsed or the review has been resolved.
(2) Reliance on a predispute
arbitration agreement, or on any other
predispute agreement, with a student,
with respect to any aspect of a class
action includes, but is not limited to,
any of the following:
(i) Seeking dismissal, deferral, or stay
of any aspect of a class action.
(ii) Seeking to exclude a person or
persons from a class in a class action.
(iii) Objecting to or seeking a
protective order intended to avoid
responding to discovery in a class
action.
(iv) Filing a claim in arbitration
against a student who has filed a claim
on the same issue in a class action.
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(v) Filing a claim in arbitration against
a student who has filed a claim on the
same issue in a class action after the
trial court has denied a motion to certify
the class but before an appellate court
has ruled on an interlocutory appeal of
that motion, if the time to seek such an
appeal has not elapsed or the appeal has
not been resolved.
(vi) Filing a claim in arbitration
against a student who has filed a claim
on the same issue in a class action after
the trial court in that class action has
granted a motion to dismiss the claim
and, in doing so, the court noted that
the consumer has leave to refile the
claim on a class basis, if the time to
refile the claim has not elapsed.
(3) Required provisions and notices:
(i) The school must include the
following provision in any agreements
with a student recipient of a Direct Loan
for attendance at the school, or, with
respect to a Parent PLUS Loan, a student
for whom the PLUS loan was obtained,
that include any agreement regarding
predispute arbitration or any other
predispute agreement addressing class
actions and that are entered into after
the effective date of this regulation: ‘‘We
agree that neither we nor anyone else
will use this agreement to stop you from
being part of a class action lawsuit in
court. You may file a class action
lawsuit in court or you may be a
member of a class action lawsuit even
if you do not file it. This provision
applies only to class action claims
concerning our acts or omissions
regarding the making of the Direct Loan
or the provision by us of educational
services for which the Direct Loan was
obtained. We agree that only the court
is to decide whether a claim asserted in
the lawsuit is a claim regarding the
making of the Federal Direct Loan or the
provision of educational services for
which the loan was obtained.’’
(ii) When a predispute arbitration
agreement or any other predispute
agreement addressing class actions has
been entered into before the effective
date of this regulation and does not
contain a provision described in
paragraph (e)(3)(i) of this section, the
school must either ensure the agreement
is amended to contain the provision
specified in paragraph (e)(3)(iii)(A) of
this section or provide the student to
whom the agreement applies with the
written notice specified in paragraph
(e)(3)(iii)(B) of this section.
(iii) The school must ensure the
agreement described in paragraph
(e)(3)(ii) of this section is amended to
contain the provision specified in
paragraph (e)(3)(iii)(A) of this section or
must provide the notice specified in
paragraph (e)(3)(iii)(B) of this section to
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Frm 00028
Fmt 4700
Sfmt 4700
students no later than the exit
counseling required under § 685.304(b),
or the date on which the school files its
initial response to a demand for
arbitration or service of a complaint
from a student who has not already been
sent a notice or amendment.
(A) Agreement provision. ‘‘We agree
that neither we nor anyone else who
later becomes a party to this agreement
will use it to stop you from being part
of a class action lawsuit in court. You
may file a class action lawsuit in court
or you may be a member of a class
action lawsuit in court even if you do
not file it. This provision applies only
to class action claims concerning our
acts or omissions regarding the making
of the Federal Direct Loan or the
provision by us of educational services
for which the Federal Direct Loan was
obtained. We agree that only the court
is to decide whether a claim asserted in
the lawsuit is a claim regarding the
making of the Federal Direct Loan or the
provision of educational services for
which the loan was obtained.’’
(B) Notice provision. ‘‘We agree not to
use any predispute agreement to stop
you from being part of a class action
lawsuit in court. You may file a class
action lawsuit in court or you may be
a member of a class action lawsuit even
if you do not file it. This provision
applies only to class action claims
concerning our acts or omissions
regarding the making of the Federal
Direct Loan or the provision by us of
educational services for which the
Federal Direct Loan was obtained. We
agree that only the court is to decide
whether a claim asserted in the lawsuit
is a claim regarding the making of the
Federal Direct Loan or the provision of
educational services for which the loan
was obtained.’’
(f) Predispute arbitration agreements.
(1)(i) The school will not enter into a
predispute agreement to arbitrate a
borrower defense claim, or rely in any
way on a predispute arbitration
agreement with respect to any aspect of
a borrower defense claim.
(ii) A student may enter into a
voluntary post-dispute arbitration
agreement with a school to arbitrate a
borrower defense claim.
(2) Reliance on a predispute
arbitration agreement with a student
with respect to any aspect of a borrower
defense claim includes, but is not
limited to, any of the following:
(i) Seeking dismissal, deferral, or stay
of any aspect of a judicial action filed
by the student, including joinder with
others in an action;
(ii) Objecting to or seeking a
protective order intended to avoid
E:\FR\FM\19JYR1.SGM
19JYR1
sradovich on DSK3GMQ082PROD with RULES
Federal Register / Vol. 83, No. 139 / Thursday, July 19, 2018 / Rules and Regulations
responding to discovery in a judicial
action filed by the student; and
(iii) Filing a claim in arbitration
against a student who has filed a suit on
the same claim.
(3) Required provisions and notices:
(i) The school must include the
following provision in any predispute
arbitration agreements with a student
recipient of a Direct Loan for attendance
at the school, or, with respect to a
Parent PLUS Loan, a student for whom
the PLUS loan was obtained, that
include any agreement regarding
arbitration and that are entered into
after the effective date of this regulation:
‘‘We agree that neither we nor anyone
else will use this agreement to stop you
from bringing a lawsuit concerning our
acts or omissions regarding the making
of the Federal Direct Loan or the
provision by us of educational services
for which the Federal Direct Loan was
obtained. You may file a lawsuit for
such a claim or you may be a member
of a class action lawsuit for such a claim
even if you do not file it. This provision
does not apply to lawsuits concerning
other claims. We agree that only the
court is to decide whether a claim
asserted in the lawsuit is a claim
regarding the making of the Federal
Direct Loan or the provision of
educational services for which the loan
was obtained.’’
(ii) When a predispute arbitration
agreement has been entered into before
the effective date of this regulation that
did not contain the provision specified
in paragraph (f)(3)(i) of this section, the
school must either ensure the agreement
is amended to contain the provision
specified in paragraph (f)(3)(iii)(A) of
this section or provide the student to
whom the agreement applies with the
written notice specified in paragraph
(f)(3)(iii)(B) of this section.
(iii) The school must ensure the
agreement described in paragraph
(f)(3)(ii) of this section is amended to
contain the provision specified in
paragraph (f)(3)(iii)(A) of this section or
must provide the notice specified in
paragraph (f)(3)(iii)(B) of this section to
students no later than the exit
counseling required under § 685.304(b),
or the date on which the school files its
initial response to a demand for
arbitration or service of a complaint
from a student who has not already been
sent a notice or amendment.
(A) Agreement provision. ‘‘We agree
that neither we nor anyone else who
later becomes a party to this predispute
arbitration agreement will use it to stop
you from bringing a lawsuit concerning
our acts or omissions regarding the
making of the Federal Direct Loan or the
provision by us of educational services
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16:04 Jul 18, 2018
Jkt 244001
for which the Federal Direct Loan was
obtained. You may file a lawsuit for
such a claim or you may be a member
of a class action lawsuit for such a claim
even if you do not file it. This provision
does not apply to other claims. We agree
that only the court is to decide whether
a claim asserted in the lawsuit is a claim
regarding the making of the Federal
Direct Loan or the provision of
educational services for which the loan
was obtained.’’
(B) Notice provision. ‘‘We agree not to
use any predispute arbitration
agreement to stop you from bringing a
lawsuit concerning our acts or
omissions regarding the making of the
Federal Direct Loan or the provision by
us of educational services for which the
Federal Direct Loan was obtained. You
may file a lawsuit regarding such a
claim or you may be a member of a class
action lawsuit regarding such a claim
even if you do not file it. This provision
does not apply to any other claims. We
agree that only the court is to decide
whether a claim asserted in the lawsuit
is a claim regarding the making of the
Direct Loan or the provision of
educational services for which the loan
was obtained.’’
(g) Submission of arbitral records. (1)
A school must submit a copy of the
following records to the Secretary, in
the form and manner specified by the
Secretary, in connection with any claim
filed in arbitration by or against the
school concerning a borrower defense
claim:
(i) The initial claim and any
counterclaim.
(ii) The arbitration agreement filed
with the arbitrator or arbitration
administrator.
(iii) The judgment or award, if any,
issued by the arbitrator or arbitration
administrator.
(iv) If an arbitrator or arbitration
administrator refuses to administer or
dismisses a claim due to the school’s
failure to pay required filing or
administrative fees, any communication
the school receives from the arbitrator or
arbitration administrator related to such
a refusal.
(v) Any communication the school
receives from an arbitrator or an
arbitration administrator related to a
determination that a predispute
arbitration agreement regarding
educational services provided by the
school does not comply with the
administrator’s fairness principles,
rules, or similar requirements, if such a
determination occurs.
(2) A school must submit any record
required pursuant to paragraph (g)(1) of
this section within 60 days of filing by
the school of any such record with the
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Sfmt 9990
34049
arbitrator or arbitration administrator
and within 60 days of receipt by the
school of any such record filed or sent
by someone other than the school, such
as the arbitrator, the arbitration
administrator, or the student.
(h) Submission of judicial records. (1)
A school must submit a copy of the
following records to the Secretary, in
the form and manner specified by the
Secretary, in connection with any claim
concerning a borrower defense claim
filed in a lawsuit by the school against
the student or by any party, including
a government agency, against the
school:
(i) The complaint and any
counterclaim.
(ii) Any dispositive motion filed by a
party to the suit; and
(iii) The ruling on any dispositive
motion and the judgment issued by the
court.
(2) A school must submit any record
required pursuant to paragraph (h)(1) of
this section within 30 days of filing or
receipt, as applicable, of the complaint,
answer, or dispositive motion, and
within 30 days of receipt of any ruling
on a dispositive motion or a final
judgment.
(i) Definitions. For the purposes of
paragraphs (d) through (h) of this
section, the term—
(1) ‘‘Borrower defense claim’’ means a
claim that is or could be asserted as a
borrower defense as defined in
§ 685.222(a)(5), including a claim other
than one based on § 685.222(c) or (d)
that may be asserted under § 685.222(b)
if reduced to judgment;
(2) ‘‘Class action’’ means a lawsuit in
which one or more parties seek class
treatment pursuant to Federal Rule of
Civil Procedure 23 or any State process
analogous to Federal Rule of Civil
Procedure 23;
(3) ‘‘Dispositive motion’’ means a
motion asking for a court order that
entirely disposes of one or more claims
in favor of the party who files the
motion without need for further court
proceedings;
(4) ‘‘Predispute arbitration agreement’’
means any agreement, regardless of its
form or structure, between a school or
a party acting on behalf of a school and
a student providing for arbitration of
any future dispute between the parties.
*
*
*
*
*
[FR Doc. 2018–15260 Filed 7–18–18; 8:45 am]
BILLING CODE 4000–01–P
E:\FR\FM\19JYR1.SGM
19JYR1
]]>Agencies
[Federal Register Volume 83, Number 139 (Thursday, July 19, 2018)]
[Rules and Regulations]
[Pages 34047-34049]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-15260]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF EDUCATION
34 CFR Part 685
[Docket ID ED-2017-OPE-0112]
RIN 1840-AD28
Student Assistance General Provisions, Federal Perkins Loan
Program, Federal Family Education Loan Program, William D. Ford Federal
Direct Loan Program, and Teacher Education Assistance for College and
Higher Education Grant Program; Corrections
AGENCY: Office of Postsecondary Education, Department of Education.
ACTION: Final rule; correcting amendments.
-----------------------------------------------------------------------
SUMMARY: In the Federal Register of February 14, 2018, the Department
of Education (Department) published a final rule (the delay rule)
delaying, until July 1, 2019, the effective date of selected provisions
of the final regulations entitled Student Assistance General
Provisions, Federal Perkins Loan Program, Federal Family Education Loan
Program, William D. Ford Federal Direct Loan Program, and Teacher
Education Assistance for College and Higher Education Grant Program
(the 2016 final regulations), published in the Federal Register on
November 1, 2016. This rule inadvertently omitted regulations from the
list in the DATES section of regulations for which the effective date
is delayed. This document removes the regulations that we intended to
delay from the text of the Code of Federal Regulations and specifies
July 1, 2019 as their effective date.
DATES: This rule is effective July 19, 2018 except for amendatory
instruction 3 which is effective July 1, 2019.
FOR FURTHER INFORMATION CONTACT: Annmarie Weisman, U.S. Department of
Education, 400 Maryland Avenue SW, Mail Stop 294-20, Washington, DC
20202-6244. Telephone: (202) 453-6712. Email: [email protected].
If you use a telecommunications device for the deaf or a text
telephone, call the Federal Relay Service, toll free, at 1-800-877-
8339.
SUPPLEMENTARY INFORMATION: In the delay rule (83 FR 6458), the list of
regulations in the DATES section in the first column on page 6459, for
which the effective date is delayed until July 1, 2019, inadvertently
excluded Sec. 685.300(b)(11), (b)(12), and (d) through (i). Those
regulations were properly included in the list of regulations for which
the effective date is delayed in the body of the document (in the third
column of page 6459) and discussed elsewhere in the document. However,
to effectuate this correction and restore the Code of Federal
Regulations to properly reflect the delay, we are publishing amendatory
language that will remove these provisions.
Waiver of Proposed Rulemaking
In accordance with the Administrative Procedure Act, 5 U.S.C. 553,
it is the Secretary's practice to offer interested parties the
opportunity to comment on proposed regulations. However, the actions in
this document are merely to correct a technical error, and thus, the
Secretary has determined that publication of a proposed rule is
unnecessary under 5 U.S.C. 553(b)(B).
Accessible Format: Individuals with disabilities can obtain this
document in an accessible format (e.g., braille, large print,
audiotape, or compact disc) on request to the contact person listed
under FOR FURTHER INFORMATION CONTACT.
Electronic Access to This Document: The official version of this
document is the document published in the Federal Register. You may
access the official edition of the Federal Register and the Code of
Federal Regulations via the Federal Digital System at: www.gpo.gov/fdsys. At this site you can view this document, as well as all other
documents of this Department published in the Federal Register, in text
or Portable Document Format (PDF). To use PDF you must have Adobe
Acrobat Reader, which is available free at the site.
You may also access documents of the Department published in the
Federal Register by using the article search feature at:
www.federalregister.gov. Specifically, through the advanced search
feature at this site, you can limit your search to documents published
by the Department.
List of Subjects in 34 CFR Part 685
Administrative practice and procedure, Colleges and universities,
Loan programs--education, Reporting and recordkeeping requirements,
Student aid, Vocational education.
Dated: July 12, 2018.
Betsy DeVos,
Secretary of Education.
For the reasons discussed in the preamble, the Secretary of
Education amends part 685 of title 34 of the Code of Federal
Regulations as follows:
PART 685--WILLIAM D. FORD FEDERAL DIRECT LOAN PROGRAM
0
1. The authority citation for part 685 continues to read as follows:
[[Page 34048]]
Authority: 20 U.S.C. 1070g, 1087a, et seq., unless otherwise
noted.
Sec. 685.300 [Amended]
0
2. Effective July 19, 2018, Sec. 685.300 is amended by:
0
a. Removing paragraph (b)(11) and redesignating paragraph (b)(12) as
paragraph (b)(11).
0
b. Removing paragraphs (d) through (i).
0
3. Effective July 1, 2019, Sec. 685.300 is amended by:
0
a. Redesignating paragraph (b)(11) as paragraph (b)(12).
0
b. Adding a new paragraph (b)(11).
0
c. Adding paragraphs (d) through (i).
The additions read as follows:
Sec. 685.300 Agreements between an eligible school and the Secretary
for participation in the Direct Loan Program.
* * * * *
(b) * * *
(11) Comply with the provisions of paragraphs (d) through (i) of
this section regarding student claims and disputes.
* * * * *
(d) Borrower defense claims in an internal dispute process. The
school will not compel any student to pursue a complaint based on a
borrower defense claim through an internal dispute process before the
student presents the complaint to an accrediting agency or government
agency authorized to hear the complaint.
(e) Class action bans. (1) The school will not seek to rely in any
way on a predispute arbitration agreement or on any other predispute
agreement with a student who has obtained or benefited from a Direct
Loan, with respect to any aspect of a class action that is related to a
borrower defense claim, including to seek a stay or dismissal of
particular claims or the entire action, unless and until the presiding
court has ruled that the case may not proceed as a class action and, if
that ruling may be subject to appellate review on an interlocutory
basis, the time to seek such review has elapsed or the review has been
resolved.
(2) Reliance on a predispute arbitration agreement, or on any other
predispute agreement, with a student, with respect to any aspect of a
class action includes, but is not limited to, any of the following:
(i) Seeking dismissal, deferral, or stay of any aspect of a class
action.
(ii) Seeking to exclude a person or persons from a class in a class
action.
(iii) Objecting to or seeking a protective order intended to avoid
responding to discovery in a class action.
(iv) Filing a claim in arbitration against a student who has filed
a claim on the same issue in a class action.
(v) Filing a claim in arbitration against a student who has filed a
claim on the same issue in a class action after the trial court has
denied a motion to certify the class but before an appellate court has
ruled on an interlocutory appeal of that motion, if the time to seek
such an appeal has not elapsed or the appeal has not been resolved.
(vi) Filing a claim in arbitration against a student who has filed
a claim on the same issue in a class action after the trial court in
that class action has granted a motion to dismiss the claim and, in
doing so, the court noted that the consumer has leave to refile the
claim on a class basis, if the time to refile the claim has not
elapsed.
(3) Required provisions and notices:
(i) The school must include the following provision in any
agreements with a student recipient of a Direct Loan for attendance at
the school, or, with respect to a Parent PLUS Loan, a student for whom
the PLUS loan was obtained, that include any agreement regarding
predispute arbitration or any other predispute agreement addressing
class actions and that are entered into after the effective date of
this regulation: ``We agree that neither we nor anyone else will use
this agreement to stop you from being part of a class action lawsuit in
court. You may file a class action lawsuit in court or you may be a
member of a class action lawsuit even if you do not file it. This
provision applies only to class action claims concerning our acts or
omissions regarding the making of the Direct Loan or the provision by
us of educational services for which the Direct Loan was obtained. We
agree that only the court is to decide whether a claim asserted in the
lawsuit is a claim regarding the making of the Federal Direct Loan or
the provision of educational services for which the loan was
obtained.''
(ii) When a predispute arbitration agreement or any other
predispute agreement addressing class actions has been entered into
before the effective date of this regulation and does not contain a
provision described in paragraph (e)(3)(i) of this section, the school
must either ensure the agreement is amended to contain the provision
specified in paragraph (e)(3)(iii)(A) of this section or provide the
student to whom the agreement applies with the written notice specified
in paragraph (e)(3)(iii)(B) of this section.
(iii) The school must ensure the agreement described in paragraph
(e)(3)(ii) of this section is amended to contain the provision
specified in paragraph (e)(3)(iii)(A) of this section or must provide
the notice specified in paragraph (e)(3)(iii)(B) of this section to
students no later than the exit counseling required under Sec.
685.304(b), or the date on which the school files its initial response
to a demand for arbitration or service of a complaint from a student
who has not already been sent a notice or amendment.
(A) Agreement provision. ``We agree that neither we nor anyone else
who later becomes a party to this agreement will use it to stop you
from being part of a class action lawsuit in court. You may file a
class action lawsuit in court or you may be a member of a class action
lawsuit in court even if you do not file it. This provision applies
only to class action claims concerning our acts or omissions regarding
the making of the Federal Direct Loan or the provision by us of
educational services for which the Federal Direct Loan was obtained. We
agree that only the court is to decide whether a claim asserted in the
lawsuit is a claim regarding the making of the Federal Direct Loan or
the provision of educational services for which the loan was
obtained.''
(B) Notice provision. ``We agree not to use any predispute
agreement to stop you from being part of a class action lawsuit in
court. You may file a class action lawsuit in court or you may be a
member of a class action lawsuit even if you do not file it. This
provision applies only to class action claims concerning our acts or
omissions regarding the making of the Federal Direct Loan or the
provision by us of educational services for which the Federal Direct
Loan was obtained. We agree that only the court is to decide whether a
claim asserted in the lawsuit is a claim regarding the making of the
Federal Direct Loan or the provision of educational services for which
the loan was obtained.''
(f) Predispute arbitration agreements. (1)(i) The school will not
enter into a predispute agreement to arbitrate a borrower defense
claim, or rely in any way on a predispute arbitration agreement with
respect to any aspect of a borrower defense claim.
(ii) A student may enter into a voluntary post-dispute arbitration
agreement with a school to arbitrate a borrower defense claim.
(2) Reliance on a predispute arbitration agreement with a student
with respect to any aspect of a borrower defense claim includes, but is
not limited to, any of the following:
(i) Seeking dismissal, deferral, or stay of any aspect of a
judicial action filed by the student, including joinder with others in
an action;
(ii) Objecting to or seeking a protective order intended to avoid
[[Page 34049]]
responding to discovery in a judicial action filed by the student; and
(iii) Filing a claim in arbitration against a student who has filed
a suit on the same claim.
(3) Required provisions and notices:
(i) The school must include the following provision in any
predispute arbitration agreements with a student recipient of a Direct
Loan for attendance at the school, or, with respect to a Parent PLUS
Loan, a student for whom the PLUS loan was obtained, that include any
agreement regarding arbitration and that are entered into after the
effective date of this regulation: ``We agree that neither we nor
anyone else will use this agreement to stop you from bringing a lawsuit
concerning our acts or omissions regarding the making of the Federal
Direct Loan or the provision by us of educational services for which
the Federal Direct Loan was obtained. You may file a lawsuit for such a
claim or you may be a member of a class action lawsuit for such a claim
even if you do not file it. This provision does not apply to lawsuits
concerning other claims. We agree that only the court is to decide
whether a claim asserted in the lawsuit is a claim regarding the making
of the Federal Direct Loan or the provision of educational services for
which the loan was obtained.''
(ii) When a predispute arbitration agreement has been entered into
before the effective date of this regulation that did not contain the
provision specified in paragraph (f)(3)(i) of this section, the school
must either ensure the agreement is amended to contain the provision
specified in paragraph (f)(3)(iii)(A) of this section or provide the
student to whom the agreement applies with the written notice specified
in paragraph (f)(3)(iii)(B) of this section.
(iii) The school must ensure the agreement described in paragraph
(f)(3)(ii) of this section is amended to contain the provision
specified in paragraph (f)(3)(iii)(A) of this section or must provide
the notice specified in paragraph (f)(3)(iii)(B) of this section to
students no later than the exit counseling required under Sec.
685.304(b), or the date on which the school files its initial response
to a demand for arbitration or service of a complaint from a student
who has not already been sent a notice or amendment.
(A) Agreement provision. ``We agree that neither we nor anyone else
who later becomes a party to this predispute arbitration agreement will
use it to stop you from bringing a lawsuit concerning our acts or
omissions regarding the making of the Federal Direct Loan or the
provision by us of educational services for which the Federal Direct
Loan was obtained. You may file a lawsuit for such a claim or you may
be a member of a class action lawsuit for such a claim even if you do
not file it. This provision does not apply to other claims. We agree
that only the court is to decide whether a claim asserted in the
lawsuit is a claim regarding the making of the Federal Direct Loan or
the provision of educational services for which the loan was
obtained.''
(B) Notice provision. ``We agree not to use any predispute
arbitration agreement to stop you from bringing a lawsuit concerning
our acts or omissions regarding the making of the Federal Direct Loan
or the provision by us of educational services for which the Federal
Direct Loan was obtained. You may file a lawsuit regarding such a claim
or you may be a member of a class action lawsuit regarding such a claim
even if you do not file it. This provision does not apply to any other
claims. We agree that only the court is to decide whether a claim
asserted in the lawsuit is a claim regarding the making of the Direct
Loan or the provision of educational services for which the loan was
obtained.''
(g) Submission of arbitral records. (1) A school must submit a copy
of the following records to the Secretary, in the form and manner
specified by the Secretary, in connection with any claim filed in
arbitration by or against the school concerning a borrower defense
claim:
(i) The initial claim and any counterclaim.
(ii) The arbitration agreement filed with the arbitrator or
arbitration administrator.
(iii) The judgment or award, if any, issued by the arbitrator or
arbitration administrator.
(iv) If an arbitrator or arbitration administrator refuses to
administer or dismisses a claim due to the school's failure to pay
required filing or administrative fees, any communication the school
receives from the arbitrator or arbitration administrator related to
such a refusal.
(v) Any communication the school receives from an arbitrator or an
arbitration administrator related to a determination that a predispute
arbitration agreement regarding educational services provided by the
school does not comply with the administrator's fairness principles,
rules, or similar requirements, if such a determination occurs.
(2) A school must submit any record required pursuant to paragraph
(g)(1) of this section within 60 days of filing by the school of any
such record with the arbitrator or arbitration administrator and within
60 days of receipt by the school of any such record filed or sent by
someone other than the school, such as the arbitrator, the arbitration
administrator, or the student.
(h) Submission of judicial records. (1) A school must submit a copy
of the following records to the Secretary, in the form and manner
specified by the Secretary, in connection with any claim concerning a
borrower defense claim filed in a lawsuit by the school against the
student or by any party, including a government agency, against the
school:
(i) The complaint and any counterclaim.
(ii) Any dispositive motion filed by a party to the suit; and
(iii) The ruling on any dispositive motion and the judgment issued
by the court.
(2) A school must submit any record required pursuant to paragraph
(h)(1) of this section within 30 days of filing or receipt, as
applicable, of the complaint, answer, or dispositive motion, and within
30 days of receipt of any ruling on a dispositive motion or a final
judgment.
(i) Definitions. For the purposes of paragraphs (d) through (h) of
this section, the term--
(1) ``Borrower defense claim'' means a claim that is or could be
asserted as a borrower defense as defined in Sec. 685.222(a)(5),
including a claim other than one based on Sec. 685.222(c) or (d) that
may be asserted under Sec. 685.222(b) if reduced to judgment;
(2) ``Class action'' means a lawsuit in which one or more parties
seek class treatment pursuant to Federal Rule of Civil Procedure 23 or
any State process analogous to Federal Rule of Civil Procedure 23;
(3) ``Dispositive motion'' means a motion asking for a court order
that entirely disposes of one or more claims in favor of the party who
files the motion without need for further court proceedings;
(4) ``Predispute arbitration agreement'' means any agreement,
regardless of its form or structure, between a school or a party acting
on behalf of a school and a student providing for arbitration of any
future dispute between the parties.
* * * * *
[FR Doc. 2018-15260 Filed 7-18-18; 8:45 am]
BILLING CODE 4000-01-P
