Student Loan Law: Direct Loan Regulations

The definitions of the following terms used in this part are set forth in the Student Assistance General Provision

Borrower eligibility

Public Service Loan Forgiveness Program

Consolidation

Debt Collection

Dept. of Education 7/6/22

Borrower responsibilities and defenses.A “borrower defense” refers to any act or omission of the school attended by the student that relates to the making of the loan for enrollment at the school or the provision of educational services for which the loan was provided that would give rise to a cause of action against the school under applicable State law. This is the provision that for-profit schools have violated.

Borrower defenses for loans disbursed after June 30, 2017.

Closed school discharge

Financial responsibility standards for educational institutions. If the the institution doesn't meet these standards, then borrower has a defense.

The regulations took effect July 1, 2020.

Deferment, meaning periodic installments of principal and interest need not be paid.

Forbearance, meaning permitting the temporary cessation of payments, allowing an extension of time for making payments, or temporarily accepting smaller payments than previously scheduled.

Repayment plans

Process for obtaining loan discharge due to total and permanent disability.

Income-based repayment plan

NPR 7/15/23 These are reforms to the income driven repayment program.

Federal Register 5/19/23

Federal Register - effective 7/1/2020

Diverse Issues in Higher Education 7/8/19

GAO Report 7/22

Congressional Budget Office Report 2/12/20

Reforms to the income driven repayment plans 4/20/22