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, 9964-9966 [2019-04887]
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Federal Register / Vol. 84, No. 53 / Tuesday, March 19, 2019 / Rules and Regulations
aggregate, or by the private sector of
$100,000,000 (adjusted for inflation) or
more in any one year. Though this rule
will not result in such an expenditure,
we do discuss the effects of this rule
elsewhere in this preamble.
F. Environment
We have analyzed this rule under
Department of Homeland Security
Directive 023–01 and Commandant
Instruction M16475.1D, which guide the
Coast Guard in complying with the
National Environmental Policy Act of
1969 (42 U.S.C. 4321–4370f), and have
determined that this action is one of a
category of actions that do not
individually or cumulatively have a
significant effect on the human
environment. This rule involves a safety
zone lasting 2 hours that will prohibit
entry within 100-yards of swim
participants. It is categorically excluded
from further review under paragraph
L63(a) of Appendix A, Table 1 of DHS
Instruction Manual 023–01–001–01,
Rev. 01. A Record of Environmental
Consideration supporting this
determination is available in the docket
where indicated under ADDRESSES.
G. Protest Activities
The Coast Guard respects the First
Amendment rights of protesters.
Protesters are asked to contact the
person listed in the FOR FURTHER
INFORMATION CONTACT section to
coordinate protest activities so that your
message can be received without
jeopardizing the safety or security of
people, places, or vessels.
List of Subjects in 33 CFR Part 165
Harbors, Marine safety, Navigation
(water), Reporting and recordkeeping
requirements, Security measures,
Waterways.
For the reasons discussed in the
preamble, the Coast Guard amends 33
CFR part 165 as follows:
1. The authority citation for part 165
continues to read as follows:
Authority: 33 U.S.C. 70034, 70051; 33 CFR
1.05–1, 6.04–1, 6.04–6, and 160.5;
Department of Homeland Security Delegation
No. 0170.1.
2. Add § 165.T14–0020 to read as
follows:
■
§ 165.T14–0020 Safety Zone; Tanapag
Harbor, Saipan, CNMI.
(a) Location. The following area,
within the Guam Captain of the Port
(COTP) Zone (See 33 CFR 3.70–15), all
navigable waters within a 100-yard
Jkt 247001
[FR Doc. 2019–05094 Filed 3–18–19; 8:45 am]
BILLING CODE 9110–04–P
DEPARTMENT OF EDUCATION
34 CFR Parts 668, 674, 682, and 685
[Docket ID ED–2015–OPE–0103]
RIN 1840–AD19
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
Office of Postsecondary
Education, Department of Education.
ACTION: Final rule; correction;
announcement of effective date.
■
16:02 Mar 18, 2019
Dated: March 14, 2019.
Christopher M. Chase,
Captain, U.S. Coast Guard, Captain of the
Port, Guam.
AGENCY:
PART 165—REGULATED NAVIGATION
AREAS AND LIMITED ACCESS AREAS
VerDate Sep<11>2014
radius of race participants in Tanapag
Harbor, Saipan. Race participants, chase
boats and organizers of the event will be
exempt from the safety zone.
(b) Effective dates. This rule is
effective from 6:30 a.m. to 8:30 a.m. on
March 31, 2019.
(c) Enforcement. Any Coast Guard
commissioned, warrant, or petty officer,
and any other COTP representative
permitted by law, may enforce this
temporary safety zone.
(d) Waiver. The COTP may waive any
of the requirements of this rule for any
person, vessel, or class of vessel upon
finding that application of the safety
zone is unnecessary or impractical for
the purpose of maritime security.
(e) Penalties. Vessels or persons
violating this rule are subject to the
penalties set forth in 46 U.S.C. 1232 and
46 U.S.C. 192.
Consistent with the decisions
of the U.S. District Court for the District
of Columbia, this document
memorializes that selected provisions of
these final regulations took effect. Due
to more recently-effective amendments,
the Department must also correct
affected amendatory instructions to
ensure their incorporation into the CFR.
DATES: As of October 16, 2018, the
corrections to the amendatory
instructions and the amendments to
§ 668.14(b)(30), (31), and (32);
§ 668.41(h) and (i); § 668.71(c);
§ 668.91(a)(3); § 668.94(h), (i) and (j);
§ 668.171; § 668.175(c), (d), (f), and (h);
part 668, subpart L, appendix C;
§ 674.33(g)(3) and (8); § 682.202(b)(1);
SUMMARY:
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§ 682.211(i)(7); § 682.402(d)(3),
(d)(6)(ii)(B)(1) and (2), (d)(6)(ii)(F)
introductory text, (d)(6)(ii)(F)(5),
(d)(6)(ii)(G) through (K), (d)(7)(ii) and
(iii), (d)(8), and (e)(6)(iii);
§ 682.405(b)(4)(ii); § 682.410(b)(4) and
(b)(6)(viii); § 685.200(f)(3)(v) and
(f)(4)(iii); § 685.205(b)(6); § 685.206(c);
§ 685.212(k); § 685.214(c)(2) and (f)(4)
through (7); § 685.215(a)(1), (c)(1)
through (8), and (d); § 685.222; part 685,
subpart B, appendix A; § 685.300(b)(11)
and (12) and (d) through (i); and
§ 685.308(a), published November 1,
2016, at 81 FR 75926, and delayed June
16, 2017 (82 FR 27621), October 24,
2017 (82 FR 49114), and February 14,
2018 (83 FR 6458), are effective.
FOR FURTHER INFORMATION CONTACT:
Barbara Hoblitzell, U.S. Department of
Education, 400 Maryland Ave. SW, Mail
stop 6W247, Washington, DC 20202.
Telephone: (202) 453–7583. Email at:
Barbara.Hoblitzell@ed.gov.
If you use a telecommunications
device for the deaf (TDD) or a text
telephone (TTY), call the Federal Relay
Service (FRS), toll free, at 1–800–877–
8339.
SUPPLEMENTARY INFORMATION: The
original ‘‘effective date’’ for these
provisions was July 1, 2017. 81 FR
75926. To the extent the provisions
explicitly use this date as a benchmark
(e.g., § 685.206(c)(‘‘For loans first
disbursed prior to July 1, 2017, the
borrower may assert a borrower defense
under this paragraph’’)), the Department
will use July 1, 2017 as the relevant
date. Because the provisions referenced
above did not actually take effect on
July 1, 2017, the Department is,
concurrently with this announcement,
releasing an Electronic Announcement
available at https://ifap.ed.gov/
eannouncements/030719GuidConcern
Prov2016BorrowerDefenseto
RypmtRegs.html to clarify the
responsibilities of institutions with
respect to the Financial Responsibility,
Class Action Bans, and Predispute
Arbitration Agreements Provisions, and
Repayment Rate Disclosure sections of
the final regulations, which are now
effective.
Background: On May 24, 2017, the
California Association of Private
Postsecondary Schools (CAPPS) filed a
Complaint and Prayer for Declaratory
and Injunctive Relief in the United
States District Court for the District of
Columbia (Court) challenging the final
regulations in their entirety, and in
particular those provisions of the
regulations pertaining to the standard
and process for the Department to
adjudicate borrower defense claims,
requirements pertaining to financial
E:\FR\FM\19MRR1.SGM
19MRR1
Federal Register / Vol. 84, No. 53 / Tuesday, March 19, 2019 / Rules and Regulations
responsibility standards, provisions
requiring proprietary institutions to
provide warnings about their students’
loan repayment rates, and prohibitions
against institutions including arbitration
or class action waivers in their
agreements with students. Complaint
and Prayer for Declaratory and
Injunctive Relief, California Association
of Private Postsecondary Schools v.
DeVos, No. 17–cv–00999 (D.D.C. May
24, 2017). The provisions in the
challenged regulations were scheduled
to become effective on July 1, 2017.
In light of the pending litigation, on
June 16, 2017, the Department
published a notification of the partial
delay of effective dates (82 FR 27621)
under section 705 of the APA (5 U.S.C.
705), to delay the effectiveness of
certain provisions of the final
regulations until the legal challenge is
resolved (705 Notice). Subsequently, on
October 24, 2017, the Department issued
an interim final rule (IFR) delaying the
effective date of those provisions of the
final regulations to July 1, 2018 (82 FR
49114), and a notice of proposed
rulemaking to further delay the effective
date to July 1, 2019 (82 FR 49155). On
February 14, 2018, the Department
published a final rule delaying the
regulations’ effective date until July 1,
2019 (83 FR 6458) (Final Delay Rule).
Following issuance of the 705 Notice,
plaintiffs Meaghan Bauer and Stephano
Del Rose filed a complaint challenging
the validity of the 705 Notice.
Complaint for Declaratory and
Injunctive Relief, Bauer v. DeVos,
No.17–cv–1330 (D.D.C. Jul. 6, 2017).
The attorneys general of 18 states and
the District of Columbia also filed a
complaint challenging the validity of
the 705 Notice. Complaint for
Declaratory and Injunctive Relief,
Massachusetts v. U.S. Dep’t of Educ.,
No. 17–cv–01331 (D.D.C. Jul. 6, 2017).
Plaintiffs in both cases subsequently
amended their complaints to include
the IFR and the Final Delay Rule, and
these cases were consolidated by the
Court.
On September 12, 2018, the Court
issued its Memorandum Opinion and
Order in the consolidated matter,
finding the challenge to the IFR was
moot, declaring the 705 Notice and the
Final Delay Rule invalid, and convening
a status conference to consider
appropriate remedies. Bauer v. DeVos,
No. 17–cv–1330 (D.D.C. Sept. 12, 2018).
Subsequently, on September 17, 2018,
the Court issued its Memorandum
Opinion and Order immediately
vacating the Final Delay Rule and
vacating the 705 Notice but suspending
its vacatur of the 705 Notice until 5:00
p.m. on October 12, 2018, to allow for
VerDate Sep<11>2014
16:02 Mar 18, 2019
Jkt 247001
renewal and briefing of CAPPS’ motion
for a preliminary injunction in the
CAPPS v. DeVos case and to give the
Department an opportunity to remedy
the deficiencies with the 705 Notice.
Bauer, No. 17–cv–1330 (D.D.C. Sept. 17,
2018). The Department decided not to
issue a revised 705 notice. On October
12, 2018, the Court extended the
suspension of its vacatur until noon on
October 16, 2018. Minute Order (Oct.
12, 2018), Bauer, No. 17–cv–1330. On
October 16, 2018, the Court denied
CAPPS’ motion for a preliminary
injunction, ending the suspension of the
vacatur. Memorandum Opinion and
Order, CAPPS, No. 17–cv–0999 (Oct. 16,
2018).
Regulations: With this action by the
Court, the final regulations published
November 1, 2016, at 81 FR 75926,
listed below took effect. Information
clarifying the responsibilities of
institutions with respect to the noweffective provisions is available in the
Electronic Announcement, https://
ifap.ed.gov/eannouncements/
030719GuidConcernProv2016Borrower
DefensetoRypmtRegs.html, the
Department is releasing concurrently
with this announcement.
• Section 668.14(b)(30), (31), and (32)
Program participation agreement.
• Section 668.41(h) and (i) Reporting
and disclosure of information.
• Section 668.71(c) Scope and special
definitions.
• Section 668.90(a)(3) Initial and final
decisions.
• Section 668.93(h), (i), and (j)
Limitation.
• Section 668.171 General.
• Section 668.175(c), (d), (f), and (h)
Alternative standards and requirements.
• Part 668, subpart L, appendix C.
• Section 674.33(g)(3) and (8)
Repayment.
• Section 682.202(b)(1) Permissible
charges by lenders to borrowers.
• Section 682.211(i)(7) Forbearance.
• Section 682.402(d)(3),
(d)(6)(ii)(B)(1) and (2), (d)(6)(ii)(F)
introductory text, (d)(6)(ii)(F)(5),
(d)(6)(ii)(G) through (K), (d)(7)(ii) and
(iii), (d)(8), and (e)(6)(iii) Death,
disability, closed school, false
certification, unpaid refunds, and
bankruptcy payments.
• Section 682.405(b)(4)(ii) Loan
rehabilitation agreement.
• Section 682.410(b)(4) and
(b)(6)(viii) Fiscal, administrative, and
enforcement requirements.
• Section 685.200(f)(3)(v) and
(f)(4)(iii) Borrower eligibility.
• Section 685.205(b)(6) Forbearance.
• Section 685.206(c) Borrower
responsibilities and defenses.
• Section 685.212(k) Discharge of a
loan obligation.
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9965
• Section 685.214(c)(2) and (f)(4)
through (7) Closed school discharge.
• Section 685.215(a)(1), (c)(1) through
(8), and (d) Discharge for false
certification of student eligibility or
unauthorized payment.
• Section 685.222 Borrower defenses.
• Part 685, subpart B, appendix A
Examples of borrower relief.
• Section 685.300(b)(11), (b)(12), and
(d) through (i) Agreements between an
eligible school and the Secretary for
participation in the Direct Loan
Program.
• Section 685.308(a) Remedial
actions.
Note: Section 668.90 has been
redesignated as § 668.91 and § 668.93
has been redesignated as § 668.94
pursuant to the borrower defense
procedural rule, published January 19,
2017 at 82 FR 6253 (the borrower
defense procedural rule), so the
Department must correct the
amendatory instructions from the
November 2016 rule to reflect the newly
redesignated section numbers.
Accessible Format: Individuals with
disabilities may 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.govinfo.gov. 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.Federal Register.gov.
Specifically, through the advanced
search feature at this site, you can limit
your search to documents published by
the Department.
Corrections
In FR Doc. 2016–25448, appearing on
page 75926 in the Federal Register of
Tuesday, November 1, 2016, the
following corrections are made:
§ 668.90
[Corrected]
1. On page 76072, in the first column,
in amendatory instruction 7, ‘‘Section
668.90’’ is corrected to read ‘‘Section
■
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Federal Register / Vol. 84, No. 53 / Tuesday, March 19, 2019 / Rules and Regulations
688.91’’ and ‘‘§ 668.90’’ is corrected to
read ‘‘§ 668.91’’.
§ 668.93
[Corrected]
2. On page 76072, in the third column,
in amendatory instruction 8, ‘‘Section
668.93’’ is corrected to read ‘‘Section
688.94’’ and ‘‘§ 668.93’’ is corrected to
read ‘‘§ 668.94’’.
■
Dated: March 12, 2019.
Betsy DeVos,
Secretary of Education.
[FR Doc. 2019–04887 Filed 3–18–19; 8:45 am]
BILLING CODE 4000–01–P
DEPARTMENT OF HOMELAND
SECURITY
Federal Emergency Management
Agency
44 CFR Part 64
[Docket ID FEMA–2019–0003; Internal
Agency Docket No. FEMA–8571]
Suspension of Community Eligibility
Federal Emergency
Management Agency, DHS.
ACTION: Final rule.
AGENCY:
This rule identifies
communities where the sale of flood
insurance has been authorized under
the National Flood Insurance Program
(NFIP) that are scheduled for
suspension on the effective dates listed
within this rule because of
noncompliance with the floodplain
management requirements of the
program. If the Federal Emergency
Management Agency (FEMA) receives
documentation that the community has
adopted the required floodplain
management measures prior to the
effective suspension date given in this
rule, the suspension will not occur and
a notice of this will be provided by
publication in the Federal Register on a
subsequent date. Also, information
identifying the current participation
status of a community can be obtained
from FEMA’s Community Status Book
(CSB). The CSB is available at https://
www.fema.gov/national-floodinsurance-program-community-statusbook.
DATES: The effective date of each
community’s scheduled suspension is
the third date (‘‘Susp.’’) listed in the
third column of the following tables.
FOR FURTHER INFORMATION CONTACT: If
you want to determine whether a
particular community was suspended
on the suspension date or for further
information, contact Adrienne L.
Sheldon, PE, CFM, Federal Insurance
SUMMARY:
VerDate Sep<11>2014
16:02 Mar 18, 2019
Jkt 247001
and Mitigation Administration, Federal
Emergency Management Agency, 400 C
Street SW, Washington, DC 20472, (202)
212–3966.
SUPPLEMENTARY INFORMATION: The NFIP
enables property owners to purchase
Federal flood insurance that is not
otherwise generally available from
private insurers. In return, communities
agree to adopt and administer local
floodplain management measures aimed
at protecting lives and new construction
from future flooding. Section 1315 of
the National Flood Insurance Act of
1968, as amended, 42 U.S.C. 4022,
prohibits the sale of NFIP flood
insurance unless an appropriate public
body adopts adequate floodplain
management measures with effective
enforcement measures. The
communities listed in this document no
longer meet that statutory requirement
for compliance with program
regulations, 44 CFR part 59.
Accordingly, the communities will be
suspended on the effective date in the
third column. As of that date, flood
insurance will no longer be available in
the community. We recognize that some
of these communities may adopt and
submit the required documentation of
legally enforceable floodplain
management measures after this rule is
published but prior to the actual
suspension date. These communities
will not be suspended and will continue
to be eligible for the sale of NFIP flood
insurance. A notice withdrawing the
suspension of such communities will be
published in the Federal Register.
In addition, FEMA publishes a Flood
Insurance Rate Map (FIRM) that
identifies the Special Flood Hazard
Areas (SFHAs) in these communities.
The date of the FIRM, if one has been
published, is indicated in the fourth
column of the table. No direct Federal
financial assistance (except assistance
pursuant to the Robert T. Stafford
Disaster Relief and Emergency
Assistance Act not in connection with a
flood) may be provided for construction
or acquisition of buildings in identified
SFHAs for communities not
participating in the NFIP and identified
for more than a year on FEMA’s initial
FIRM for the community as having
flood-prone areas (section 202(a) of the
Flood Disaster Protection Act of 1973,
42 U.S.C. 4106(a), as amended). This
prohibition against certain types of
Federal assistance becomes effective for
the communities listed on the date
shown in the last column. The
Administrator finds that notice and
public comment procedures under 5
U.S.C. 553(b), are impracticable and
unnecessary because communities listed
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Frm 00030
Fmt 4700
Sfmt 4700
in this final rule have been adequately
notified.
Each community receives 6-month,
90-day, and 30-day notification letters
addressed to the Chief Executive Officer
stating that the community will be
suspended unless the required
floodplain management measures are
met prior to the effective suspension
date. Since these notifications were
made, this final rule may take effect
within less than 30 days.
National Environmental Policy Act.
FEMA has determined that the
community suspension(s) included in
this rule is a non-discretionary action
and therefore the National
Environmental Policy Act of 1969 (42
U.S.C. 4321 et seq.) does not apply.
Regulatory Flexibility Act. The
Administrator has determined that this
rule is exempt from the requirements of
the Regulatory Flexibility Act because
the National Flood Insurance Act of
1968, as amended, Section 1315, 42
U.S.C. 4022, prohibits flood insurance
coverage unless an appropriate public
body adopts adequate floodplain
management measures with effective
enforcement measures. The
communities listed no longer comply
with the statutory requirements, and
after the effective date, flood insurance
will no longer be available in the
communities unless remedial action
takes place.
Regulatory Classification. This final
rule is not a significant regulatory action
under the criteria of section 3(f) of
Executive Order 12866 of September 30,
1993, Regulatory Planning and Review,
58 FR 51735.
Executive Order 13132, Federalism.
This rule involves no policies that have
federalism implications under Executive
Order 13132.
Executive Order 12988, Civil Justice
Reform. This rule meets the applicable
standards of Executive Order 12988.
Paperwork Reduction Act. This rule
does not involve any collection of
information for purposes of the
Paperwork Reduction Act, 44 U.S.C.
3501 et seq.
List of Subjects in 44 CFR Part 64
Flood insurance, Floodplains.
Accordingly, 44 CFR part 64 is
amended as follows:
PART 64—[AMENDED]
1. The authority citation for part 64
continues to read as follows:
■
Authority: 42 U.S.C. 4001 et seq.;
Reorganization Plan No. 3 of 1978, 3 CFR,
1978 Comp.; p. 329; E.O. 12127, 44 FR 19367,
3 CFR, 1979 Comp.; p. 376.
E:\FR\FM\19MRR1.SGM
19MRR1
Agencies
[Federal Register Volume 84, Number 53 (Tuesday, March 19, 2019)]
[Rules and Regulations]
[Pages 9964-9966]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-04887]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF EDUCATION
34 CFR Parts 668, 674, 682, and 685
[Docket ID ED-2015-OPE-0103]
RIN 1840-AD19
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
AGENCY: Office of Postsecondary Education, Department of Education.
ACTION: Final rule; correction; announcement of effective date.
-----------------------------------------------------------------------
SUMMARY: Consistent with the decisions of the U.S. District Court for
the District of Columbia, this document memorializes that selected
provisions of these final regulations took effect. Due to more
recently-effective amendments, the Department must also correct
affected amendatory instructions to ensure their incorporation into the
CFR.
DATES: As of October 16, 2018, the corrections to the amendatory
instructions and the amendments to Sec. 668.14(b)(30), (31), and (32);
Sec. 668.41(h) and (i); Sec. 668.71(c); Sec. 668.91(a)(3); Sec.
668.94(h), (i) and (j); Sec. 668.171; Sec. 668.175(c), (d), (f), and
(h); part 668, subpart L, appendix C; Sec. 674.33(g)(3) and (8); Sec.
682.202(b)(1); Sec. 682.211(i)(7); Sec. 682.402(d)(3),
(d)(6)(ii)(B)(1) and (2), (d)(6)(ii)(F) introductory text,
(d)(6)(ii)(F)(5), (d)(6)(ii)(G) through (K), (d)(7)(ii) and (iii),
(d)(8), and (e)(6)(iii); Sec. 682.405(b)(4)(ii); Sec. 682.410(b)(4)
and (b)(6)(viii); Sec. 685.200(f)(3)(v) and (f)(4)(iii); Sec.
685.205(b)(6); Sec. 685.206(c); Sec. 685.212(k); Sec. 685.214(c)(2)
and (f)(4) through (7); Sec. 685.215(a)(1), (c)(1) through (8), and
(d); Sec. 685.222; part 685, subpart B, appendix A; Sec.
685.300(b)(11) and (12) and (d) through (i); and Sec. 685.308(a),
published November 1, 2016, at 81 FR 75926, and delayed June 16, 2017
(82 FR 27621), October 24, 2017 (82 FR 49114), and February 14, 2018
(83 FR 6458), are effective.
FOR FURTHER INFORMATION CONTACT: Barbara Hoblitzell, U.S. Department of
Education, 400 Maryland Ave. SW, Mail stop 6W247, Washington, DC 20202.
Telephone: (202) 453-7583. Email at: Barbara.Hoblitzell@ed.gov.
If you use a telecommunications device for the deaf (TDD) or a text
telephone (TTY), call the Federal Relay Service (FRS), toll free, at 1-
800-877-8339.
SUPPLEMENTARY INFORMATION: The original ``effective date'' for these
provisions was July 1, 2017. 81 FR 75926. To the extent the provisions
explicitly use this date as a benchmark (e.g., Sec. 685.206(c)(``For
loans first disbursed prior to July 1, 2017, the borrower may assert a
borrower defense under this paragraph'')), the Department will use July
1, 2017 as the relevant date. Because the provisions referenced above
did not actually take effect on July 1, 2017, the Department is,
concurrently with this announcement, releasing an Electronic
Announcement available at https://ifap.ed.gov/eannouncements/030719GuidConcernProv2016BorrowerDefensetoRypmtRegs.html to clarify the
responsibilities of institutions with respect to the Financial
Responsibility, Class Action Bans, and Predispute Arbitration
Agreements Provisions, and Repayment Rate Disclosure sections of the
final regulations, which are now effective.
Background: On May 24, 2017, the California Association of Private
Postsecondary Schools (CAPPS) filed a Complaint and Prayer for
Declaratory and Injunctive Relief in the United States District Court
for the District of Columbia (Court) challenging the final regulations
in their entirety, and in particular those provisions of the
regulations pertaining to the standard and process for the Department
to adjudicate borrower defense claims, requirements pertaining to
financial
[[Page 9965]]
responsibility standards, provisions requiring proprietary institutions
to provide warnings about their students' loan repayment rates, and
prohibitions against institutions including arbitration or class action
waivers in their agreements with students. Complaint and Prayer for
Declaratory and Injunctive Relief, California Association of Private
Postsecondary Schools v. DeVos, No. 17-cv-00999 (D.D.C. May 24, 2017).
The provisions in the challenged regulations were scheduled to become
effective on July 1, 2017.
In light of the pending litigation, on June 16, 2017, the
Department published a notification of the partial delay of effective
dates (82 FR 27621) under section 705 of the APA (5 U.S.C. 705), to
delay the effectiveness of certain provisions of the final regulations
until the legal challenge is resolved (705 Notice). Subsequently, on
October 24, 2017, the Department issued an interim final rule (IFR)
delaying the effective date of those provisions of the final
regulations to July 1, 2018 (82 FR 49114), and a notice of proposed
rulemaking to further delay the effective date to July 1, 2019 (82 FR
49155). On February 14, 2018, the Department published a final rule
delaying the regulations' effective date until July 1, 2019 (83 FR
6458) (Final Delay Rule).
Following issuance of the 705 Notice, plaintiffs Meaghan Bauer and
Stephano Del Rose filed a complaint challenging the validity of the 705
Notice. Complaint for Declaratory and Injunctive Relief, Bauer v.
DeVos, No.17-cv-1330 (D.D.C. Jul. 6, 2017). The attorneys general of 18
states and the District of Columbia also filed a complaint challenging
the validity of the 705 Notice. Complaint for Declaratory and
Injunctive Relief, Massachusetts v. U.S. Dep't of Educ., No. 17-cv-
01331 (D.D.C. Jul. 6, 2017). Plaintiffs in both cases subsequently
amended their complaints to include the IFR and the Final Delay Rule,
and these cases were consolidated by the Court.
On September 12, 2018, the Court issued its Memorandum Opinion and
Order in the consolidated matter, finding the challenge to the IFR was
moot, declaring the 705 Notice and the Final Delay Rule invalid, and
convening a status conference to consider appropriate remedies. Bauer
v. DeVos, No. 17-cv-1330 (D.D.C. Sept. 12, 2018). Subsequently, on
September 17, 2018, the Court issued its Memorandum Opinion and Order
immediately vacating the Final Delay Rule and vacating the 705 Notice
but suspending its vacatur of the 705 Notice until 5:00 p.m. on October
12, 2018, to allow for renewal and briefing of CAPPS' motion for a
preliminary injunction in the CAPPS v. DeVos case and to give the
Department an opportunity to remedy the deficiencies with the 705
Notice. Bauer, No. 17-cv-1330 (D.D.C. Sept. 17, 2018). The Department
decided not to issue a revised 705 notice. On October 12, 2018, the
Court extended the suspension of its vacatur until noon on October 16,
2018. Minute Order (Oct. 12, 2018), Bauer, No. 17-cv-1330. On October
16, 2018, the Court denied CAPPS' motion for a preliminary injunction,
ending the suspension of the vacatur. Memorandum Opinion and Order,
CAPPS, No. 17-cv-0999 (Oct. 16, 2018).
Regulations: With this action by the Court, the final regulations
published November 1, 2016, at 81 FR 75926, listed below took effect.
Information clarifying the responsibilities of institutions with
respect to the now-effective provisions is available in the Electronic
Announcement, https://ifap.ed.gov/eannouncements/030719GuidConcernProv2016BorrowerDefensetoRypmtRegs.html, the
Department is releasing concurrently with this announcement.
Section 668.14(b)(30), (31), and (32) Program
participation agreement.
Section 668.41(h) and (i) Reporting and disclosure of
information.
Section 668.71(c) Scope and special definitions.
Section 668.90(a)(3) Initial and final decisions.
Section 668.93(h), (i), and (j) Limitation.
Section 668.171 General.
Section 668.175(c), (d), (f), and (h) Alternative
standards and requirements.
Part 668, subpart L, appendix C.
Section 674.33(g)(3) and (8) Repayment.
Section 682.202(b)(1) Permissible charges by lenders to
borrowers.
Section 682.211(i)(7) Forbearance.
Section 682.402(d)(3), (d)(6)(ii)(B)(1) and (2),
(d)(6)(ii)(F) introductory text, (d)(6)(ii)(F)(5), (d)(6)(ii)(G)
through (K), (d)(7)(ii) and (iii), (d)(8), and (e)(6)(iii) Death,
disability, closed school, false certification, unpaid refunds, and
bankruptcy payments.
Section 682.405(b)(4)(ii) Loan rehabilitation agreement.
Section 682.410(b)(4) and (b)(6)(viii) Fiscal,
administrative, and enforcement requirements.
Section 685.200(f)(3)(v) and (f)(4)(iii) Borrower
eligibility.
Section 685.205(b)(6) Forbearance.
Section 685.206(c) Borrower responsibilities and defenses.
Section 685.212(k) Discharge of a loan obligation.
Section 685.214(c)(2) and (f)(4) through (7) Closed school
discharge.
Section 685.215(a)(1), (c)(1) through (8), and (d)
Discharge for false certification of student eligibility or
unauthorized payment.
Section 685.222 Borrower defenses.
Part 685, subpart B, appendix A Examples of borrower
relief.
Section 685.300(b)(11), (b)(12), and (d) through (i)
Agreements between an eligible school and the Secretary for
participation in the Direct Loan Program.
Section 685.308(a) Remedial actions.
Note: Section 668.90 has been redesignated as Sec. 668.91 and
Sec. 668.93 has been redesignated as Sec. 668.94 pursuant to the
borrower defense procedural rule, published January 19, 2017 at 82 FR
6253 (the borrower defense procedural rule), so the Department must
correct the amendatory instructions from the November 2016 rule to
reflect the newly redesignated section numbers.
Accessible Format: Individuals with disabilities may 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.govinfo.gov.
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.Federal
Register.gov. Specifically, through the advanced search feature at this
site, you can limit your search to documents published by the
Department.
Corrections
In FR Doc. 2016-25448, appearing on page 75926 in the Federal
Register of Tuesday, November 1, 2016, the following corrections are
made:
Sec. 668.90 [Corrected]
0
1. On page 76072, in the first column, in amendatory instruction 7,
``Section 668.90'' is corrected to read ``Section
[[Page 9966]]
688.91'' and ``Sec. 668.90'' is corrected to read ``Sec. 668.91''.
Sec. 668.93 [Corrected]
0
2. On page 76072, in the third column, in amendatory instruction 8,
``Section 668.93'' is corrected to read ``Section 688.94'' and ``Sec.
668.93'' is corrected to read ``Sec. 668.94''.
Dated: March 12, 2019.
Betsy DeVos,
Secretary of Education.
[FR Doc. 2019-04887 Filed 3-18-19; 8:45 am]
BILLING CODE 4000-01-P