| Are the requirements in the proposed regulations clearly stated? * Do the proposed regulations contain technical terms or other wording that interferes with their clarity? * Does the format of the proposed regulations (grouping and order of sections, use of headings, paragraphing, etc.) aid or reduce their clarity? * Would the proposed regulations be easier to understand if we divided them into more (but shorter) sections? (A ``section'' is preceded by the symbol ``Sec. '' and a numbered heading; for example, Sec. 685.217(d) Forgiveness Amount.) * Could the description of the proposed regulations in the SUPPLEMENTARY INFORMATION section of this preamble be more helpful in making the proposed regulations easier to understand? If so, how? * What else could we do to make the proposed regulations easier to understand? Send any comments that concern how the Department could make these proposed regulations easier to understand to the person listed in the ADDRESSES section of the preamble. Regulatory Flexibility Act Certification The Secretary certifies that these proposed regulations would not have a significant economic impact on a substantial number of small entities. These proposed regulations would affect individual FFEL and Direct Loan borrowers, who are not considered ``small entities'' under the Regulatory Flexibility Act. The Secretary invites comments on this determination, and welcomes proposals on any significant alternatives that would satisfy the same legal and policy objectives of these proposals while minimizing the economic impact on small entities. Paperwork Reduction Act of 1995 Sections 682.211 and 682.215(c) in FFEL Program and Secs. 685.205 and 685.217 in Direct Loans contain an information collection requirement. Under the Paperwork Reduction Act of 1995 (44 U.S.C. 3507(d)), the Department of Education has submitted a copy of these sections to the Office of Management and Budget (OMB) for its review. Collection of Information: Federal Family Education Loan Program and William D. Ford Federal Direct Loan Program. Section 682.211 Forbearance This proposed provision would allow a borrower who is a teacher to receive a forbearance during the period in which the borrower is completing the teaching requirements for teacher loan forgiveness. This provision has information collection requirements that would affect borrowers. Borrowers will be required to complete a form certifying their eligibility for the forbearance and agreeing to the terms of the forbearance. We will develop a form following publication of the final regulations and, when cleared, the form will account for the burden to the borrowers. Section 682.215 Teacher Loan Forgiveness This proposed provision would allow a borrower who is a teacher and who meets certain requirements to have up to $5,000 of his or her loan debt forgiven. This provision has information collection requirements that would affect borrowers and lenders. The burden for lenders is currently included in our current inventory based on the prior teaching loan forgiveness program. Borrowers will be required to complete a form to apply for teacher loan forgiveness. This form will be developed following publication of the [[Page 49128]] final regulations and, when cleared, will account for the burden to the borrowers. Section 685.205 Forbearance This proposed provision would allow a borrower who is a teacher to receive a forbearance during the period in which the borrower is completing the teaching requirements for teacher loan forgiveness. This provision has information collection requirements that would affect borrowers. Borrowers will be required to complete a form certifying their eligibility for the forbearance and agreeing to the terms of the forbearance. We will modify our current General Forbearance Request form (OMB No. 1845-0031) following publication of the final regulations and, when cleared, the form will account for the burden to the borrowers. Section 685.217 Teacher Loan Forgiveness This proposed provision would allow a borrower who is a teacher and who meets certain requirements to have up to $5,000 of his or her loan debt forgiven. This provision has information collection requirements that would affect borrowers. Borrowers will be required to complete a form to apply for teacher loan forgiveness. This form will be developed following publication of the final regulations and, when cleared, will account for the burden to the borrowers. If you want to comment on the information collection requirements, please send your comments to the Office of Information and Regulatory Affairs, OMB room 10235, New Executive Office Building, Washington, DC 20503; Attention: Desk Officer for U.S. Department of Education. You may also send a copy of these comments to the Department representative named in the ADDRESSES section of this preamble. We consider your comments on these proposed collections of information in * Deciding whether the proposed collections are necessary for the proper performance of our functions, including whether the information will have practical use; * Evaluating the accuracy of our estimate of the burden of the proposed collections, including the validity of our methodology and assumptions; * Enhancing the quality, usefulness, and clarity of the information we collect; and * Minimizing the burden on those who must respond. This includes exploring the use of appropriate automated, electronic, mechanical, or other technological collection techniques or other forms of information technology; e.g., permitting electronic submission of responses. OMB is required to make a decision concerning the collections of information contained in these proposed regulations between 30 and 60 days after publication of this document in the Federal Register. Therefore, to ensure that OMB gives your comments full consideration, it is important that OMB receives the comments within 30 days of publication. This does not affect the deadline for your comments to us on the proposed regulations. Intergovernmental Review These programs are not subject to Executive Order 12372 and the regulations in 34 CFR 79. Assessment of Educational Impact The Secretary particularly requests comments on whether these proposed regulations would require transmission of information that any other agency or authority of the United States gathers or makes available. Electronic Access to This Document You may view this document in text or Adobe Portable Document Format (PDF) on the Internet at the following sites: http://ocfo.ed.gov/fedreg.htm http://ifap.ed.gov/csb_html/fedlreg.htm To use the PDF you must have the Adobe Acrobat Reader Program with Search, which is available free at the first of the previous sites. If you have questions about using the PDF, call the U.S. Government Printing Office (GPO), toll free, at 1-888-293-6498; or in the Washington, D.C., area at (202) 512-1530. Note: The official version of this document is the document published in the Federal Register. Free Internet access to the official edition of the Federal Register and the Code of Federal Regulations is available on GPO Access at: http:// www.access.gpo.gov/nara/index.html. (Catalog of Federal Domestic Assistance Numbers 84.032 Federal Family Education Loan Program, and 84.268 William D. Ford Federal Direct Loan Program) List of Subjects in 34 CFR Parts 682 and 685 Administrative practice and procedure, Colleges and universities, Education, Loan programs-education, Reporting and recordkeeping requirements, Student aid, Vocational education. Dated: July 27, 2000. Richard W. Riley, Secretary of Education. For the reasons stated in the preamble, the Secretary proposes to amend title 34 of the Code of Federal Regulations by revising parts 682 and 685 as follows: PART 682FEDERAL FAMILY EDUCATION LOAN PROGRAM (1) The authority citation for part 682 continues to read as follows: Authority: 20 U.S.C. 1071 to 1087-2, unless otherwise noted. 2. Section 682.211 is amended as follows: A. In paragraph (h)(2)(ii)(B), by removing the period at the end and adding in its place, ``; or''. B. By adding a new paragraph (h)(2)(ii)(C). C. By adding a new paragraph (h)(3)(iii). The additions and revisions read as follows: Sec. 682.211 Forbearance. * * * * * (h) * * * (2) * * * (ii) * * * (C) Is performing the type of service that would qualify the borrower for loan forgiveness and associated forbearance under the requirements of the Teacher loan forgiveness program in Sec. 682.215. * * * * * (3) * * * (iii) Before granting a forbearance to a borrower under paragraph (h)(2)(ii)(C) of this section, the lender must require the borrower to (A) Submit documentation for the period of the annual forbearance request showing the beginning and anticipated ending dates that the borrower is expected to perform, for that year, the type of service described in Sec. 682.215(c); and (B) Certify the borrower's intent to satisfy the requirements of Sec. 682.215(c). * * * * * 3. A new Sec. 682.215 is added to read as follows: Sec. 682.215 Teacher loan forgiveness program. (a) General. The Teacher loan forgiveness program is intended to encourage individuals to enter and continue in the teaching profession. For new borrowers, the Secretary repays up to $5,000 of subsidized and unsubsidized Federal Stafford Loans, Direct Subsidized Loans, Direct Unsubsidized Loans, and in certain cases, Federal Consolidation Loans or [[Page 49129]] Direct Consolidation Loans. The forgiveness program is only available to a borrower who has no outstanding loan balance under the Federal Family Education Loan (FFEL) Program or the William D. Ford Federal Direct Loan (Direct Loan) Program on October 1, 1998 or who has no outstanding loan balance on the date he or she obtains a loan after October 1, 1998. In addition, the borrower must have been employed as a full-time teacher for five consecutive complete academic years, at least one of which was after the 1997-1998 academic year, in certain eligible elementary or secondary schools that serve low-income families. The loan for which forgiveness is sought must have been made prior to the end of the borrower's fifth year of qualifying teaching service. (b) Definitions. The following definitions apply to this section: Academic year means one complete school year at the same school, or two complete and consecutive half years at different schools, or two complete and consecutive half years from different school years at either the same school or different schools. Half years exclude summer sessions and generally fall within a twelve-month period. For schools that have a year-round program of instruction, nine months is considered an academic year. Elementary school means a public or nonprofit private school that provides elementary education as determined by State law or the Secretary if that school is not in a State. Full-time means the standard used by a State in defining full-time employment as a teacher. For a borrower teaching in more than one school, the determination of full-time is based on the combination of all qualifying employment. Secondary school means a public or nonprofit private school that provides secondary education as determined by State law or the Secretary if the school is not in a State. Teacher means a person who provides direct classroom teaching or classroom-type teaching in a non-classroom setting, including Special Education teachers. (c) Borrower eligibility. (1) A borrower may obtain loan forgiveness under this program if he or she has been employed as a full-time teacher for five consecutive complete academic years, at least one of which was after the 1997-1998 academic year, in an elementary or secondary school that (i) Is in a school district that qualifies for funds under title I of the Elementary and Secondary Education Act of 1965, as amended; (ii) Has been selected by the Secretary based on a determination that more than 30 percent of the school's total enrollment is made up of children who qualify for services provided under title I; and (iii) Is listed in the Annual Directory of Designated Low-Income Schools for Teacher Cancellation Benefits. If this directory is not available before May 1 of any year, the previous year's directory may be used. (2) If the school at which the borrower is employed meets the requirements specified in paragraph (c)(1) of this section for at least one year of the borrower's five consecutive complete academic years of teaching and the school fails to meet those requirements in subsequent years, those subsequent years of teaching qualify for purposes of this section for that borrower. (3) A borrower who is employed as an elementary school teacher must demonstrate knowledge and teaching skills in reading, writing, mathematics, and other areas of the elementary school curriculum, as certified by the chief administrative officer of the school in which the borrower was employed. (4) A borrower who is employed as a secondary school teacher must teach in a subject area that is relevant to the borrower's academic major as certified by the chief administrative officer of the school in which the borrower was employed. (5) The academic year may be counted as one of the borrower's five consecutive complete academic years if the borrower completes at least one-half of the academic year and the borrower's employer considers the borrower to have fulfilled his or her contract requirements for the academic year for the purposes of salary increases, tenure, and retirement if the borrower is unable to complete an academic year due to (i) A return to postsecondary education, on at least a half-time basis, that is directly related to the performance of the service described in this section; (ii) A condition that is covered under the Family and Medical Leave Act of 1993 (FMLA) (19 U.S.C. 2654); or (iii) A call or order to active duty status for more than 30 days as a member of a reserve component of the Armed Forces named in section 10101 of title 10, United States Code. (6) A borrower's period of postsecondary education, qualifying FMLA condition, or military active duty as described in paragraph (c)(5)(i), (ii), and (iii) of this section does not constitute a break in the required five consecutive years of qualifying teaching service. (7) A borrower who taught in more than one qualified school during an academic year and demonstrates that the combined teaching was the equivalent of full-time, as supported by the certification of one or more of the chief administrative officers of the schools involved, is considered to have completed one academic year of qualified teaching. (8) A borrower is not eligible for teacher loan forgiveness on a defaulted loan unless the borrower has made satisfactory repayment arrangements to re-establish title IV eligibility, as defined in Sec. 682.200. (9) A borrower may not receive loan forgiveness for qualifying teaching service under this section if the borrower receives a benefit for the same teaching service under subtitle D of title I of the National and Community Service Act of 1990. (d) Forgiveness amount. (1) A qualified borrower is eligible for forgiveness of up to $5,000 of the aggregate amount of a borrower's subsidized or unsubsidized Federal Stafford or Federal Consolidation Loan obligation that is outstanding after the borrower completes his or her fifth consecutive complete academic year of teaching as described in paragraph (c) of this section. Only the portion of the consolidation loan that was used to repay the outstanding portions of a subsidized or unsubsidized Federal Stafford loan, a Direct Subsidized Loan, or a Direct Unsubsidized Loan qualifies for loan forgiveness under this section. (2) A borrower may not receive more than a total of $5,000 in loan forgiveness under both this section and under section 34 CFR 685.217. (3) The holder does not refund payments that were received from a borrower who qualifies for loan forgiveness under this section. (e) Authorized forbearance during qualifying teaching service and discharge processing. (1) At the borrower's request, a lender grants a forbearance (i) Under Sec. 682.211(h)(2)(ii)(C) and (h)(3)(iii), in annual increments during each of the five years of qualifying teaching service, if the lender believes that the cancellation amount will satisfy the anticipated remaining outstanding balance on the loan at the time of the expected cancellation; (ii) For a period not to exceed 60 days while the lender is awaiting a completed teacher loan forgiveness application from the borrower; or (iii) For the period beginning on the date the lender receives a completed loan forgiveness application to the date the lender receives either a denial of the [[Page 49130]] request or the loan discharge amount from the guaranty agency, in accordance with paragraph (f) of this section. (2) At the conclusion of a forbearance authorized under paragraph (e)(1) of this section, the lender must resume collection activities and may capitalize any interest accrued and not paid during the forbearance period in accordance with Sec. 682.202(b). (3) Nothing in paragraph (e) of this section restricts holders from offering other forbearance options to borrowers who do not meet the requirements of paragraph (e)(1)(i) of this section. (f) Application and processing. (1) A borrower, after completing the qualifying teaching service, requests loan forgiveness from the holder of the loan on a form approved by the Secretary. (2)(i) The holder must file a request for payment with the guaranty agency on a teacher forgiveness discharge no later than 60 days after the receipt, from the borrower, of a completed teacher loan forgiveness application form including the certification form or forms submitted by the borrower and certified by the appropriate official or officials, as described in paragraph (c)(3) or (c)(4) of this section. (ii) When filing a request for payment on a teacher forgiveness discharge, the holder must provide the guaranty agency with the completed loan forgiveness application submitted by the borrower and any required supporting documentation. (3)(i) Within 45 days of receiving the holder's request for payment, the guaranty agency must determine if the borrower meets the eligibility requirements for loan forgiveness under this section and must notify the holder of its determination of the borrower's eligibility for loan forgiveness under this section. (ii) If the guaranty agency approves the discharge, it must, within the same 45-day period, pay the holder the amount of the discharge, up to $5,000, subject to paragraphs (c)(9) and (d)(2) of this section. (4) After being notified by the guaranty agency of its determination of the eligibility of the borrower for the discharge, the holder must, within 30 days, inform the borrower of the determination. If the discharge is approved, the lender must also provide the borrower with information regarding any new repayment terms of remaining loan balances. (5) Unless otherwise instructed by the borrower, the holder must apply the proceeds of the teacher forgiveness discharge first to any outstanding unsubsidized Federal Stafford loan balances, next to any outstanding subsidized Federal Stafford loan balances, and lastly to any outstanding Federal Consolidation loan balances. (Authority: 20 U.S.C. 1078-10) PART 685WILLIAM D. FORD FEDERAL DIRECT LOAN PROGRAM 4. The authority citation for Part 685 continues to read as follows: Authority: 20 U.S.C. 1087 et seq., unless otherwise noted. Sec. 658.102 [Amended] 5. Section 685.102(b) is amended in paragraph (2) of the definition of ``Satisfactory repayment arrangement'' by removing the reference to ``34 CFR 685.215(d)(1)(ii)(E)'' and adding, in its place, ``34 CFR 685.220(d)(1)(ii)(E)''. Sec. 658.200 [Amended] 6. Section 685.200 is amended by: A. Removing from paragraph (a)(1)(v) ``34 CFR 668.7(b)'' and adding, in its place, ``34 CFR 668.32(e)(2) or (3)''. B. Removing from paragraph (b)(1)(iv) ``34 CFR 668.7'' and adding, in its place ``34 CFR 668.32(g)''. C. Removing, from paragraph (c), ``Sec. 685.215(d)(1)(ii)(F)'' and adding, in its place, ``685.220(d)(1)(ii)(F)''. Sec. 685.201 [Amended] 7. Section 685.201(c)(2) is amended by removing the reference to ``Sec. 685.216'' and by adding, in its place ``Sec. 685.220''. 8. Section 685.205 is amended by: A. Redesignating paragraph (a)(5) as (a)(6). B. Adding a new paragraph (a)(5). C. Removing from paragraph (b)(6)(i) the reference to ``Sec. 685.213'' and adding, in its place, ``Sec. 685.214''. D. Removing from paragraph (b)(6)(ii) the reference to ``Sec. 685.214'' and adding, in its place, ``Sec. 685.215''. E. Removing from paragraph (b)(6)(iii) the reference to ``Sec. 685.215; or'' and adding, in its place, ``Sec. 685.216;''. F. By redesignating paragraph (b)(6)(iv), as paragraph (b)(6)(v). G. By adding a new paragraph (b)(6)(iv). The additions read as follows: Sec. 685.205 Forbearance. (a) * * * (5) The borrower (i) Is performing the type of service that would qualify the borrower for loan forgiveness under the requirements of the Teacher loan forgiveness program in Sec. 685.217; and (ii) Is required, by the Secretary, before a forbearance is granted under Sec. 685.205(a)(5)(i) to (A) Submit documentation for the period of the annual forbearance request showing the beginning and ending dates that the borrower is expected to perform, for that year, the type of service described in Sec. 685.217(c); and (B) Certify the borrower's intent to satisfy the requirements of Sec. 685.217(c). * * * * * (b) * * * (6) * * * (iv) Under Sec. 685.217; or * * * * * Sec. 685.210 [Amended] 9. Section 685.210(b)(2)(ii) is amended by removing the reference to ``Sec. 685.209(d)(2)'' and by adding, in its place ``Sec. 685.209(c)(4)''. Sec. 685.211 [Amended] 10. Section 685.211(e)(4) is amended by removing the reference to ``Sec. 685.215'' and by adding, in its place, ``Sec. 685.220''. Sec. 685.212 [Amended] 11. Section 685.212 is amended by: A. Removing from paragraph (d) the reference to ``Sec. 685.213'' and adding, in its place, ``Sec. 685.214''. B. Removing from paragraph (e) the reference to ``Sec. 685.214'' and adding, in its place, ``Sec. 685.215''. C. Removing from paragraph (f) the reference to ``Sec. 685.215'' and adding, in its place, ``Sec. 685.216''. D. By adding a new paragraph (h). The addition reads as follows: Sec. 685.212 Discharge of a loan obligation. * * * * * (h) Teacher loan forgiveness program. If a new borrower meets the requirements in Sec. 685.217, the Secretary repays up to $5,000 of the borrower's Direct Subsidized Loans, Direct Unsubsidized Loans, and, in certain cases, Direct Consolidation Loans. * * * * * Sec. 685.215 [Amended] 12. In Sec. 685.215, paragraph (c)(5)(ii) is amended by removing the references to ``Sec. 685.213(d)'' and ``Sec. 685.213(e)'' and adding, in their place, ``Sec. 685.214(d)'' and ``Sec. 685.214(e)'', respectively. Sec. 685.216 [Amended] 13. In Sec. 685.216, paragraph (c)(1)(iii)(B) is amended by removing the references to ``Sec. 685.213(d)'' and ``Sec. 685.213(e)'' and adding, in their place, ``Sec. 685.214(d)'' and ``Sec. 685.214(e)'', respectively. 14. A new Sec. 685.217 is added to read as follows: Sec. 685.217 Teacher loan forgiveness program. (a) General. The Teacher loan forgiveness program is intended to [[Page 49131]] encourage individuals to enter and continue in the teaching profession. For new borrowers, the Secretary will repay up to $5,000 of subsidized and unsubsidized Federal Stafford Loans, Direct Subsidized Loans, Direct Unsubsidized Loans, and, in certain cases, Federal Consolidation Loans or Direct Consolidation Loans. The forgiveness program is only available to a borrower who has no outstanding loan balance under the Federal Family Education Loan (FFEL) Program or the William D. Ford Federal Direct Loan (Direct Loan) Program on October 1, 1998 or who has no outstanding loan balance on the date he or she obtains a loan after October 1, 1998. In addition, the borrower must have been employed as a full-time teacher for five consecutive complete academic years, at least one of which was after the 1997-1998 academic year in certain eligible elementary or secondary schools that serve low-income families. The loan for which the borrower is seeking forgiveness must have been made prior to the end of the fifth year of qualifying teaching service. (b) Definitions. The following definitions apply to this section: Academic year means one complete school year at the same school, or two complete and consecutive half years at different schools, or two complete and consecutive half years from different school years at either the same school or different schools. Half years exclude summer sessions and generally fall within a twelve-month period. For schools that have a year-round program of instruction, a minimum of nine months is considered an academic year. Elementary school means a public or nonprofit private school that provides elementary education as determined by State law or the Secretary if that school is not in a State. Full-time means the standard used by a State in defining full-time employment as a teacher. For a borrower teaching in more than one school, the determination of full-time is based on the combination of all qualifying employment. Secondary school means a public or nonprofit private school that provides secondary education as determined by State law or the Secretary if the school is not in a State. Teacher means a person who provides direct classroom teaching or classroom-type teaching in a non-classroom setting, including Special Education teachers. (c) Borrower eligibility. (1) A borrower may obtain loan forgiveness under this program if he or she has been employed as a full-time teacher for five consecutive complete academic years, at least one of which was after the 1997-1998 academic year, in an elementary or secondary school that (i) Is in a school district that qualifies for funds under title I of the Elementary and Secondary Education Act of 1965, as amended; (ii) Has been selected by the Secretary based on a determination that more than 30 percent of the school's total enrollment is made up of children who qualify for services provided under title I; or (iii) Is listed in the Annual Directory of Designated Low-Income Schools for Teacher Cancellation Benefits. If this directory is not available before May 1 of any year, the previous year's directory may be used. (2) If the school at which the borrower is employed meets the requirements specified in paragraph (c)(1) of this section for at least one year of the borrower's five consecutive complete academic years of teaching and the school failed to meet those requirements in subsequent years, those subsequent years of teaching qualify for purposes of this section for that borrower. (3) A borrower who is employed as an elementary school teacher must demonstrate knowledge and teaching skills in reading, writing, mathematics, and other areas of the elementary school curriculum, as certified by the chief administrative officer of the school in which the borrower was employed. (4) A borrower who is employed as a secondary school teacher must teach in a subject area that is relevant to the borrower's academic major as certified by the chief administrative officer of the school in which the borrower was employed. (5) The academic year may be counted as one of the borrower's five consecutive complete academic years if the borrower completes at least one-half of the academic year and the borrower's employer considers the borrower to have fulfilled his or her contract requirements for the academic year for the purposes of salary increases, tenure, and retirement if the borrower is unable to complete an academic year due to (i) A return to postsecondary education, on at least a half-time basis, that is directly related to the performance of the service described in this section; (ii) A condition that is covered under the Family and Medical Leave Act of 1993 (FMLA) (19 U.S.C. 2654); or (iii) A call or order to active duty status for more than 30 days as a member of a reserve component of the Armed Forces named in section 10101 of title 10, United States Code. (6) If a borrower meets the requirements of paragraph (c)(5) of this section, the borrower's period of postsecondary education, active duty, or qualifying FMLA condition does not constitute a break in the required five consecutive years of qualifying teaching service. (7) A borrower who teaches in more than one qualified school during an academic year and demonstrates that the combined teaching was the equivalent of full-time, as supported by the certification of one or more of the chief administrative officers of the schools involved, is considered to have completed one academic year of qualified teaching. (8) A borrower is not eligible for teacher loan forgiveness on a defaulted loan unless the borrower has made satisfactory repayment arrangements to re-establish title IV eligibility, as defined in Sec. 685.200(b). (9) A borrower may not receive loan forgiveness for qualifying teaching service under this section if the borrower receives a benefit for the same teaching service under subtitle D of title I of the National and Community Service Act of 1990. (d) Forgiveness amount. (1) A qualified borrower is eligible for forgiveness of up to $5,000 of the aggregate amount of a borrower's Direct Subsidized Loan, Direct Unsubsidized Loan, or Direct Consolidation Loan obligation that is outstanding after the borrower completes his or her fifth consecutive complete academic year of teaching as described in paragraph (c) of this section. Only the portion of a Direct Consolidation Loan that was used to repay the outstanding portion of a subsidized or unsubsidized Federal Stafford loan, a Direct Subsidized Loan, or a Direct Unsubsidized Loan qualifies for loan forgiveness under this section. (2) A borrower may not receive more than a total of $5,000 in loan forgiveness under both this section and 34 CFR 682.215. (3) The Secretary does not refund payments that were received from a borrower who qualifies for loan forgiveness under this section. (e) Application. (1) A borrower, after completing the qualifying teacher service, must request loan forgiveness from the Secretary on a form provided by the Secretary. (2) If the Secretary determines that the borrower meets the eligibility requirements for loan forgiveness under this section, the Secretary (i) Notifies the borrower of this determination; and (ii) Unless otherwise instructed by the borrower, applies the proceeds of the [[Page 49132]] loan forgiveness first to any outstanding Direct Unsubsidized Loan balances, next to any outstanding Direct Subsidized Loan balances, any qualifying Direct Unsubsidized Consolidation Loan balances, and last to any qualifying outstanding Direct Subsidized Consolidation Loan balances. (3) If the Secretary determines that the borrower does not meet the eligibility requirements for loan forgiveness under this section, the Secretary notifies the borrower of this determination. Authority: 20 U.S.C. 1087a et seq. Sec. 685.218 [Added and Removed] Sec. 685.219 [Added and Removed] 15. New Secs. 685.218 and 685.219 are added and reserved. [FR Doc. 00-20035 Filed 8-9-00; 8:45 am] BILLING CODE 4000-01-P | |
|
