Student Debt Relief Based on Hardship for the William D. Ford Federal Direct Loan Program (Direct Loans), the Federal Family Education Loan (FFEL) Program, the Federal Perkins Loan (Perkins) Program, and the Health Education Assistance Loan (HEAL) Program; Withdrawal, 104934-104935 [2024-30605]

Download as PDF 104934 Federal Register / Vol. 89, No. 247 / Thursday, December 26, 2024 / Proposed Rules receiving the demand. If the Internal Revenue Service does not issue such complaint within 60 days of receiving the demand, the suspension or disqualification is lifted automatically. The preceding sentence does not, however, preclude the Commissioner, or delegate, from instituting a regular proceeding under § 10.80. (g) Applicability date. This section is applicable beginning on [date 30 days after date of publication of final regulations in the Federal Register]. ■ Par. 41. Newly redesignated § 10.110 is amended by: ■ 1. Removing paragraph (a)(4). ■ 2. Redesignating paragraphs (a)(5) and (6) as paragraphs (a)(4) and (5). ■ 3. Revising paragraph (c). The revision reads as follows: § 10.110 Records. * § 10.114 Applicability date. Except as otherwise provided in any section of this part and subject to § 10.112, the provisions of this part are applicable on [date 30 days after date of publication of final regulations in the Federal Register]. Douglas W. O’Donnell, Deputy Commissioner. Aviva R. Aron-Dine, Deputy Assistant Secretary of the Treasury (Tax Policy). * * * * (c) Applicability date. This section is applicable beginning on [date 30 days after date of publication of final regulations in the Federal Register]. ■ Par. 42. Sections 10.111 and 10.112 are added to read as follows: [FR Doc. 2024–29371 Filed 12–20–24; 4:15 pm] § 10.111 Establishment of advisory committees. [Docket ID ED–2023–OPE–0123] § 10.112 Saving provision. Any proceeding instituted under this part prior to [date 30 days after date of publication of final regulations in the Federal Register], for which a final decision has not been reached or for which judicial review is still available is not affected by the revisions to this part effective [effective date of final regulations]. Any proceeding under this part based on conduct engaged in prior to [date 30 days after date of publication of final regulations in the Federal VerDate Sep<11>2014 16:56 Dec 23, 2024 Jkt 265001 BILLING CODE 4830–01–P DEPARTMENT OF EDUCATION 34 CFR Part 30 RIN 1840–AD95 (a) Advisory committees. To promote and maintain the public’s confidence in tax advisors, the Internal Revenue Service is authorized to establish one or more advisory committees composed of at least six individuals authorized to practice before the Internal Revenue Service. Membership of an advisory committee must be balanced among those who practice as attorneys, accountants, enrolled agents, enrolled actuaries, and enrolled retirement plan agents. Under procedures prescribed by the Internal Revenue Service, an advisory committee may review and make general recommendations regarding the practices, procedures, and policies of the offices described in § 10.1. (b) Applicability date. This section is applicable beginning on [date 30 days after date of publication of final regulations in the Federal Register]. ddrumheller on DSK120RN23PROD with PROPOSALS1 Register], which is instituted after that date, will apply this subpart, but the conduct engaged in prior to [effective date of final regulations], will be judged by the regulations in effect at the time the conduct occurred. ■ Par. 43. Section 10.114 is added to read as follows: Student Debt Relief Based on Hardship for the William D. Ford Federal Direct Loan Program (Direct Loans), the Federal Family Education Loan (FFEL) Program, the Federal Perkins Loan (Perkins) Program, and the Health Education Assistance Loan (HEAL) Program; Withdrawal Office of Postsecondary Education, Department of Education. ACTION: Withdrawal of notice of proposed rulemaking and termination of rulemaking proceeding. AGENCY: The U.S. Department of Education (Department) is withdrawing a notice of proposed rulemaking (NPRM) that, under the Secretary’s authority to waive repayment of a loan provided by the Higher Education Act of 1965, as amended (HEA), proposed to specify the Secretary’s authority to waive all or part of any student loan debts owed to the Department based on the Secretary’s determination that a borrower has experienced or is experiencing hardship related to such a loan. DATES: The notice of proposed rulemaking published in the Federal Register at 89 FR 87130 on October 31, 2024, is withdrawn as of December 20, 2024. FOR FURTHER INFORMATION CONTACT: Tamy Abernathy, U.S. Department of SUMMARY: PO 00000 Frm 00035 Fmt 4702 Sfmt 4702 Education, Office of Postsecondary Education, 400 Maryland Avenue SW, 5th floor, Washington, DC 20202. Telephone: (202) 245–4595. Email: NegRegNPRMHelp@ed.gov. If you are deaf, hard of hearing, or have a speech disability and wish to access telecommunications relay services, please dial 7–1–1. SUPPLEMENTARY INFORMATION: Background On October 31, 2024, the Department published an NPRM in the Federal Register that, in accordance with the Secretary’s authority to waive repayment of a loan provided by sections 432(a)(6) and 468(2) of the HEA, would specify the Secretary’s discretion to provide debt relief to borrowers who are experiencing or have experienced hardship related to their loans. See 89 FR 87130. The proposed regulations would modify the Department’s existing debt collection regulations to provide greater specificity regarding the Secretary’s discretion to waive Federal student loan debt. The proposed rule outlines two pathways for discretionary relief: (i) a predictive assessment offering individualized, automatic waivers based on the borrower’s likelihood of default to provide immediate relief as soon as practicable; and (ii) a holistic assessment of the borrower’s circumstances based on an application or information within the Department’s possession to address persistent hardships not sufficiently addressed by other Department programs. The Department accepted public comments on the NPRM from October 31, 2024 through December 2, 2024. In response to the NPRM, the Department received 14,735 written comments, and the Department reviewed such comments. Withdrawal of the Notice of Proposed Rulemaking and Termination of the Rulemaking Proceeding In accordance with the Secretary’s authority under sections 432(a)(6) and 468(2) of the HEA to waive repayment of a loan, the Department issued the NPRM to specify the Secretary’s discretion to provide targeted debt relief to borrowers who have experienced or are experiencing hardship repaying their student loans based on the criteria specified in the NPRM.1 1 As the Department noted in the NPRM, these proposed regulations related to hardship are separate from the proposals for student debt relief specified in the Notice of Proposed Rulemaking issued on April 17, 2024 (April 2024 NPRM) (89 FR 27564), which is the subject of a separate Notice of Withdrawal. These proposed regulations differ from the waivers in the April 2024 NPRM along various dimensions, including that the provisions in this E:\FR\FM\26DEP1.SGM 26DEP1 ddrumheller on DSK120RN23PROD with PROPOSALS1 Federal Register / Vol. 89, No. 247 / Thursday, December 26, 2024 / Proposed Rules The Department believed clarifying the circumstances in which the Secretary may use the existing and longstanding waiver authority under sections 432(a)(6) and 468(2) of the HEA would better inform the public about how the Secretary may exercise this waiver authority in a consistent and equitable manner. Current regulations do not describe how the Secretary uses this waiver authority. We also believed that providing such specificity would allow the Department to highlight circumstances where we are particularly concerned about borrowers’ inability to successfully repay their debts in full and where the Department anticipated that the costs of collection would exceed the expected benefits. However, upon further consideration of the operational challenges in implementing the proposals in the NPRM, the Secretary withdraws the NPRM and terminates the rulemaking proceeding. In making this decision, we reconsidered the Department’s ability to implement the proposed rules if they were finalized in a form identical or largely similar to what was included in the NPRM. With the time remaining in this Administration, the Department is focused on several priorities including court-ordered settlements and helping borrowers manage the final elements of the return to repayment following the Fall 2024 end of the 12-month on-ramp period designed to assist borrowers who were unable to make their payments or who needed more time to access information to determine the right repayment plan for their circumstances. With the end of the on-ramp period, some borrowers may start becoming delinquent and start down the path to default. Given that many newer borrowers are at risk of default, and the Department expects that many of these newer borrowers would not have been otherwise eligible for immediate relief under the proposed rules in the NPRM, along with the uncertainty around the implementation of the NPRM proposals, the Department at this time intends to commit its limited operational resources to helping at-risk borrowers return to repayment successfully. For all of these independently sufficient reasons, the Department is withdrawing this NPRM. Importantly, the Department is not withdrawing this NPRM and terminating this rulemaking proceeding based upon a changed view of the Secretary’s authority under section 432(a) and 468(2) of the HEA, or based upon any preliminary determination about the limitations of such authority. See Missouri v. Biden, No. 24–cv–1316, ECF No. 57 (granting preliminary injunction in challenge focused on separate April 2024 NPRM relying on waiver authority). Rather, the Department continues to believe that the NPRM is authorized by the Secretary’s longstanding and existing authority under the HEA, as explained in the NPRM. See, e.g., 89 FR 87133–34. We do not intend for a final rule to be issued on this NPRM. Were the Department to issue a regulation in this area in the future, it would be bound by the requirements of section 492(a) and (b) of the HEA, 20 U.S.C. 1098a(a) and (b). Accessible Format: On request to the program contact person listed under FOR FURTHER INFORMATION CONTACT, individuals with disabilities can obtain this document in an accessible format. The Department will provide the requestor with an accessible format that may include Rich Text Format (RTF) or text format (txt), a thumb drive, an MP3, braille, large print, audiotape, compact disc, or other accessible format. 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 at www.govinfo.gov. At this site you can view this document, as well as all other Department documents 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 Department documents 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. Miguel Cardona, Secretary of Education. [FR Doc. 2024–30605 Filed 12–20–24; 8:45 am] BILLING CODE 4000–01–P 16:56 Dec 23, 2024 Jkt 265001 DEPARTMENT OF EDUCATION 34 CFR Parts 75 and 76 [Docket ID ED–2022–OPE–0157] RIN 1840–AD72 Direct Grant Programs, StateAdministered Formula Grant Programs; Withdrawal Office of Postsecondary Education, Department of Education. ACTION: Notice of proposed rulemaking; withdrawal. AGENCY: The U.S. Department of Education (Department) is withdrawing a notice of proposed rulemaking to rescind regulations related to religious student organizations at certain public institutions of higher education (IHEs). The proposed regulations would have applied to public IHEs that receive a direct grant from the Department or a subgrant from a State-administered formula grant program of the Department. DATES: The notice of proposed rulemaking published in the Federal Register at 88 FR 10857 on February 22, 2023, is withdrawn as of December 20, 2024. FOR FURTHER INFORMATION CONTACT: Scott Prince, U.S. Department of Education, Office of Postsecondary Education, 400 Maryland Avenue SW, 5th floor, Washington, DC 20202. Telephone: (202) 453–5568. Email: NegRegNPRMHelp@ed.gov. If you are deaf, hard of hearing, or have a speech disability and wish to access telecommunications relay services, please dial 7–1–1. SUPPLEMENTARY INFORMATION: SUMMARY: Background On September 23, 2020, the Department promulgated a final rule that addressed freedom of speech and the free exercise of religion at institutions of higher education participating in certain programs administered by the Department. See 85 FR 59916.1 On August 19, 2021, the Department announced our intent to conduct a review of these regulations while keeping in mind the importance of several key elements, including First Amendment protections, nondiscrimination requirements, and the promotion of inclusive learning environments for all students.2 As part 1 The Department also published a document with two technical corrections on November 6, 2020, see 85 FR 70975. 2 Cooper, Michelle Asha. ‘‘Update on the Free Inquiry Rule,’’ Department of Education Homeroom NPRM applied distinct and different eligibility criteria and addressed different challenges with student loan repayment faced by borrowers. See, e.g., 89 FR at 87131 n. 2. VerDate Sep<11>2014 104935 Continued PO 00000 Frm 00036 Fmt 4702 Sfmt 4702 E:\FR\FM\26DEP1.SGM 26DEP1

Agencies

[Federal Register Volume 89, Number 247 (Thursday, December 26, 2024)]
[Proposed Rules]
[Pages 104934-104935]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-30605]


=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF EDUCATION

34 CFR Part 30

[Docket ID ED-2023-OPE-0123]
RIN 1840-AD95


Student Debt Relief Based on Hardship for the William D. Ford 
Federal Direct Loan Program (Direct Loans), the Federal Family 
Education Loan (FFEL) Program, the Federal Perkins Loan (Perkins) 
Program, and the Health Education Assistance Loan (HEAL) Program; 
Withdrawal

AGENCY: Office of Postsecondary Education, Department of Education.

ACTION: Withdrawal of notice of proposed rulemaking and termination of 
rulemaking proceeding.

-----------------------------------------------------------------------

SUMMARY: The U.S. Department of Education (Department) is withdrawing a 
notice of proposed rulemaking (NPRM) that, under the Secretary's 
authority to waive repayment of a loan provided by the Higher Education 
Act of 1965, as amended (HEA), proposed to specify the Secretary's 
authority to waive all or part of any student loan debts owed to the 
Department based on the Secretary's determination that a borrower has 
experienced or is experiencing hardship related to such a loan.

DATES: The notice of proposed rulemaking published in the Federal 
Register at 89 FR 87130 on October 31, 2024, is withdrawn as of 
December 20, 2024.

FOR FURTHER INFORMATION CONTACT: Tamy Abernathy, U.S. Department of 
Education, Office of Postsecondary Education, 400 Maryland Avenue SW, 
5th floor, Washington, DC 20202. Telephone: (202) 245-4595. Email: 
[email protected].
    If you are deaf, hard of hearing, or have a speech disability and 
wish to access telecommunications relay services, please dial 7-1-1.

SUPPLEMENTARY INFORMATION: Background
    On October 31, 2024, the Department published an NPRM in the 
Federal Register that, in accordance with the Secretary's authority to 
waive repayment of a loan provided by sections 432(a)(6) and 468(2) of 
the HEA, would specify the Secretary's discretion to provide debt 
relief to borrowers who are experiencing or have experienced hardship 
related to their loans. See 89 FR 87130. The proposed regulations would 
modify the Department's existing debt collection regulations to provide 
greater specificity regarding the Secretary's discretion to waive 
Federal student loan debt. The proposed rule outlines two pathways for 
discretionary relief: (i) a predictive assessment offering 
individualized, automatic waivers based on the borrower's likelihood of 
default to provide immediate relief as soon as practicable; and (ii) a 
holistic assessment of the borrower's circumstances based on an 
application or information within the Department's possession to 
address persistent hardships not sufficiently addressed by other 
Department programs.
    The Department accepted public comments on the NPRM from October 
31, 2024 through December 2, 2024. In response to the NPRM, the 
Department received 14,735 written comments, and the Department 
reviewed such comments.
    Withdrawal of the Notice of Proposed Rulemaking and Termination of 
the Rulemaking Proceeding
    In accordance with the Secretary's authority under sections 
432(a)(6) and 468(2) of the HEA to waive repayment of a loan, the 
Department issued the NPRM to specify the Secretary's discretion to 
provide targeted debt relief to borrowers who have experienced or are 
experiencing hardship repaying their student loans based on the 
criteria specified in the NPRM.\1\
---------------------------------------------------------------------------

    \1\ As the Department noted in the NPRM, these proposed 
regulations related to hardship are separate from the proposals for 
student debt relief specified in the Notice of Proposed Rulemaking 
issued on April 17, 2024 (April 2024 NPRM) (89 FR 27564), which is 
the subject of a separate Notice of Withdrawal. These proposed 
regulations differ from the waivers in the April 2024 NPRM along 
various dimensions, including that the provisions in this NPRM 
applied distinct and different eligibility criteria and addressed 
different challenges with student loan repayment faced by borrowers. 
See, e.g., 89 FR at 87131 n. 2.

---------------------------------------------------------------------------

[[Page 104935]]

    The Department believed clarifying the circumstances in which the 
Secretary may use the existing and longstanding waiver authority under 
sections 432(a)(6) and 468(2) of the HEA would better inform the public 
about how the Secretary may exercise this waiver authority in a 
consistent and equitable manner. Current regulations do not describe 
how the Secretary uses this waiver authority. We also believed that 
providing such specificity would allow the Department to highlight 
circumstances where we are particularly concerned about borrowers' 
inability to successfully repay their debts in full and where the 
Department anticipated that the costs of collection would exceed the 
expected benefits.
    However, upon further consideration of the operational challenges 
in implementing the proposals in the NPRM, the Secretary withdraws the 
NPRM and terminates the rulemaking proceeding.
    In making this decision, we reconsidered the Department's ability 
to implement the proposed rules if they were finalized in a form 
identical or largely similar to what was included in the NPRM. With the 
time remaining in this Administration, the Department is focused on 
several priorities including court-ordered settlements and helping 
borrowers manage the final elements of the return to repayment 
following the Fall 2024 end of the 12-month on-ramp period designed to 
assist borrowers who were unable to make their payments or who needed 
more time to access information to determine the right repayment plan 
for their circumstances. With the end of the on-ramp period, some 
borrowers may start becoming delinquent and start down the path to 
default. Given that many newer borrowers are at risk of default, and 
the Department expects that many of these newer borrowers would not 
have been otherwise eligible for immediate relief under the proposed 
rules in the NPRM, along with the uncertainty around the implementation 
of the NPRM proposals, the Department at this time intends to commit 
its limited operational resources to helping at-risk borrowers return 
to repayment successfully. For all of these independently sufficient 
reasons, the Department is withdrawing this NPRM.
    Importantly, the Department is not withdrawing this NPRM and 
terminating this rulemaking proceeding based upon a changed view of the 
Secretary's authority under section 432(a) and 468(2) of the HEA, or 
based upon any preliminary determination about the limitations of such 
authority. See Missouri v. Biden, No. 24-cv-1316, ECF No. 57 (granting 
preliminary injunction in challenge focused on separate April 2024 NPRM 
relying on waiver authority). Rather, the Department continues to 
believe that the NPRM is authorized by the Secretary's longstanding and 
existing authority under the HEA, as explained in the NPRM. See, e.g., 
89 FR 87133-34.
    We do not intend for a final rule to be issued on this NPRM. Were 
the Department to issue a regulation in this area in the future, it 
would be bound by the requirements of section 492(a) and (b) of the 
HEA, 20 U.S.C. 1098a(a) and (b).
    Accessible Format: On request to the program contact person listed 
under FOR FURTHER INFORMATION CONTACT, individuals with disabilities 
can obtain this document in an accessible format. The Department will 
provide the requestor with an accessible format that may include Rich 
Text Format (RTF) or text format (txt), a thumb drive, an MP3, braille, 
large print, audiotape, compact disc, or other accessible format.
    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 at www.govinfo.gov. At this site you can view this 
document, as well as all other Department documents 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 Department documents 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.

Miguel Cardona,
Secretary of Education.
[FR Doc. 2024-30605 Filed 12-20-24; 8:45 am]
BILLING CODE 4000-01-P
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.