82_FR_48394 82 FR 48195 - Federal Student Aid Programs (Student Assistance General Provisions, Federal Perkins Loan Program, Federal Family Education Loan Program, and the Federal Direct Loan Program)

82 FR 48195 - Federal Student Aid Programs (Student Assistance General Provisions, Federal Perkins Loan Program, Federal Family Education Loan Program, and the Federal Direct Loan Program)

DEPARTMENT OF EDUCATION

Federal Register Volume 82, Issue 199 (October 17, 2017)

Page Range48195-48202
FR Document2017-22489

On September 29, 2017, the Secretary published a document in the Federal Register announcing the updated waivers and modifications of statutory and regulatory requirements governing the Federal student financial aid programs under the authority of the Higher Education Relief Opportunities for Students Act of 2003 (HEROES Act). We are republishing this document to include the definitions of certain terms used in this document. We have made no changes to the waivers and modifications.

Federal Register, Volume 82 Issue 199 (Tuesday, October 17, 2017)
[Federal Register Volume 82, Number 199 (Tuesday, October 17, 2017)]
[Rules and Regulations]
[Pages 48195-48202]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-22489]



[[Page 48195]]

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DEPARTMENT OF EDUCATION

34 CFR Parts 668, 674, 682, and 685


Federal Student Aid Programs (Student Assistance General 
Provisions, Federal Perkins Loan Program, Federal Family Education Loan 
Program, and the Federal Direct Loan Program)

AGENCY: Office of Postsecondary Education, Department of Education.

ACTION: Updated waivers and modifications of statutory and regulatory 
requirements; republication.

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SUMMARY: On September 29, 2017, the Secretary published a document in 
the Federal Register announcing the updated waivers and modifications 
of statutory and regulatory requirements governing the Federal student 
financial aid programs under the authority of the Higher Education 
Relief Opportunities for Students Act of 2003 (HEROES Act). We are 
republishing this document to include the definitions of certain terms 
used in this document. We have made no changes to the waivers and 
modifications.

DATES: The waivers and modifications began on September 29, 2017. The 
waivers and modifications in this document expire on September 30, 
2022.

FOR FURTHER INFORMATION CONTACT: For provisions related to the title IV 
loan programs (Federal Perkins Loan Program, Federal Family Education 
Loan (FFEL) Program, and Federal Direct Loan (Direct Loan) Program): 
Barbara Hoblitzell, U.S. Department of Education, 400 Maryland Ave. 
SW., Room 6W253, Washington, DC 20202. Telephone: (202) 453-7583 or by 
email: [email protected] or Brian Smith, U.S. Department of 
Education, 400 Maryland Ave. SW., Room 7E222, Washington, DC 20202. 
Telephone: (202) 453-7440 or by email: [email protected]. For other 
provisions: Wendy Macias, U.S. Department of Education, 400 Maryland 
Ave. SW., Room 6C111, Washington, DC 20202. Telephone: (202) 203-9155 
or by email: [email protected].
    If you use a telecommunications device for the deaf (TDD) or text 
telephone (TTY), call the Federal Relay Service (FRS), toll free, at 1-
800-877-8339.
    Individuals with disabilities can obtain this document in an 
accessible format (e.g., Braille, large print, audiotape, or compact 
disc) by contacting Wendy Macias, U.S. Department of Education, 400 
Maryland Ave. SW., Room 6C111, Washington, DC 20202. Telephone: (202) 
203-9155 or by email: [email protected].

SUPPLEMENTARY INFORMATION: On September 29, 2017 (82 FR 45465), the 
Secretary published a document in the Federal Register announcing the 
updated waivers and modifications. We are republishing this document to 
include the definitions of certain terms used in this document. We have 
made no changes to the waivers and modifications.
    In a document published in the Federal Register on December 12, 
2003 (68 FR 69312), the Secretary exercised the authority under the 
HEROES Act (Pub. L. 108-76, 20 U.S.C. 1098bb(b)) and announced waivers 
and modifications of statutory and regulatory provisions designed to 
assist ``affected individuals.'' Under 20 U.S.C. 1098ee(2), the term 
``affected individual'' means an individual who:
     Is serving on active duty during a war or other military 
operation or national emergency;
     Is performing qualifying National Guard duty during a war 
or other military operation or national emergency;
     Resides or is employed in an area that is declared a 
disaster area by any Federal, State, or local official in connection 
with a national emergency; or
     Suffered direct economic hardship as a direct result of a 
war or other military operation or national emergency, as determined by 
the Secretary.
    Please note that these waivers and modifications do not apply to an 
individual who resides or is employed in an area declared a disaster 
area by any Federal, State, or local official unless that declaration 
has been made in connection with a national emergency.
    Under the HEROES Act, the Secretary's authority to provide the 
waivers and modifications would have expired on September 30, 2005. 
However, Public Law 109-78, enacted on September 30, 2005, extended the 
expiration date of the Secretary's authority to September 30, 2007. 
Accordingly, in a document in the Federal Register published on October 
20, 2005 (70 FR 61037), the Secretary extended the expiration of the 
waivers and modifications published on December 12, 2003, to September 
30, 2007.
    Public Law 110-93, enacted on September 30, 2007, eliminated the 
September 30, 2007, expiration date of the HEROES Act, thereby making 
permanent the Secretary's authority to issue waivers and modifications 
of statutory and regulatory provisions.
    On December 26, 2007, the Secretary published a document in the 
Federal Register (72 FR 72947) extending the waivers and modifications 
published on December 12, 2003, to September 30, 2012. In that 
document, the Secretary also indicated an intent to review the waivers 
and modifications published on December 12, 2003, in light of statutory 
and regulatory changes and to consider whether to change some or all of 
the published waivers and modifications.
    In a document in the Federal Register published on September 27, 
2012 (77 FR 59311), the Secretary published updated waivers and 
modifications to reflect the results of the review. Under that 
document, the updated waivers and modifications expire on September 30, 
2017.
    The Secretary is updating the waivers and modifications to reflect 
statutory and regulatory changes that have occurred since the September 
27, 2012, document was published. The waivers and modifications in this 
document will expire on September 30, 2022. With a few limited 
exceptions, the waivers and modifications in this document are the same 
waivers and modifications published in the September 27, 2012, Federal 
Register document. However, the 2012 waivers and modifications have 
been updated in the following areas:
    (1) The Secretary updated the need analysis modification to reflect 
the change in which tax year's information is collected on the Free 
Application for Federal Student Aid (FAFSA) and used to calculate the 
applicant's expected family contribution (EFC). Previously when 
completing a FAFSA, a student provided income information from the most 
recently completed tax year prior to the beginning of the financial aid 
application cycle (e.g., 2015 income information for the 2016-2017 
FAFSA). Beginning with the 2017-2018 FAFSA, income information is 
collected from one tax year earlier--referred to as the ``prior-prior 
year.'' This change was made under the authority of section 
480(a)(1)(B) of the Higher Education Act of 1965, as amended (HEA). 
This modification was also updated to make it consistent with the 
modification to professional judgment included in this document, which 
provides three options that a financial aid administrator (FAA) may use 
to make adjustments to the values of the items used to calculate the 
EFC to reflect a student's special circumstances.
    (2) For the professional judgment modification, the Secretary 
clarified that in addition to using income information

[[Page 48196]]

from the first or second calendar year of the award year, an 
institution may use another annual income that more accurately reflects 
the family's current financial circumstances.
    (3) The Secretary updated the modifications related to verification 
of adjusted gross income (AGI) and U.S. income tax paid so that 
affected individuals under this category are no longer required to 
provide a signature on the statement certifying that he or she has not 
filed an income tax return or a request for a filing extension because 
he or she was called up for active duty or for qualifying National 
Guard duty during a war or other military operation or national 
emergency; or certifying the amount of AGI and U.S. income tax paid for 
the specified year.
    (4) The Secretary extended the waiver assisting affected 
individuals with regard to the annual reevaluation requirements for 
FFEL and Direct Loan borrowers who are repaying loans under the Income-
Based Repayment (IBR) plan, and Direct Loan borrowers who are repaying 
loans under the Income-Contingent Repayment (ICR) plan to include 
borrowers who are repaying Direct Loans under the Pay As You Earn 
(PAYE) or Revised Pay As You Earn (REPAYE) repayment plans.
    (5) For the fourth category of affected individuals to which 
waivers and modifications apply, as described later in this document, 
the Secretary removed the reference to spouses of affected individuals 
who are serving on active duty or performing qualifying National Guard 
duty during a war or other military operation or national emergency, 
since the waivers under this category only pertain to the dependent 
student of such affected individuals.
    (6) The Secretary updated the waiver related to verification 
signature requirements to waive the requirement for a parental 
signature on any verification documentation required for title IV 
eligibility for a dependent student because of the parent's status as 
an affected individual.
    (7) The Secretary made a technical change to the waiver related to 
the section on required signatures on the FAFSA, the Student Aid Report 
(SAR), and the Institutional Student Information Record (ISIR), 
replacing the reference to ``ISIR'' with ``or submitting corrections 
electronically''. The Secretary also changed the reference to 
``responsible parent'' to ``relevant parent'' to mean the parent whose 
information is reported on the FAFSA.
    The Secretary is issuing these waivers and modifications under the 
authority of the HEROES Act, 20 U.S.C. 1098bb(a). In accordance with 
the HEROES Act, the Secretary is providing the waivers and 
modifications of statutory and regulatory requirements applicable to 
the student financial assistance programs under title IV of the HEA 
that the Secretary believes are appropriate to ensure that:
     Affected individuals who are recipients of student 
financial assistance under title IV are not placed in a worse position 
financially in relation to that financial assistance because they are 
affected individuals;
     Affected individuals who are recipients of student 
financial assistance are not unduly subject to administrative burden or 
inadvertent, technical violations or defaults;
     Affected individuals are not penalized when a 
determination of need for student financial assistance is calculated;
     Affected individuals are not required to return or repay 
an overpayment of grant funds based on the HEA's Return of Title IV 
Funds provision; and
     Entities that participate in the student financial 
assistance programs under title IV of the HEA and that are located in 
areas that are declared disaster areas by any Federal, State, or local 
official in connection with a national emergency, or whose operations 
are significantly affected by such a disaster, receive temporary relief 
from administrative requirements.
    In 20 U.S.C. 1098bb(b)(1), the HEROES Act further provides that 
section 437 of the General Education Provisions Act (20 U.S.C. 1232) 
and section 553 of the Administrative Procedure Act (5 U.S.C. 553) do 
not apply to the contents of this document.
    In 20 U.S.C. 1098ee, the HEROES Act provides definitions critical 
to determining whether a student is an ``affected individual'' under 
the act and, if so, to which waivers and modifications the affected 
individual is entitled. Because these definitions are located outside 
of the statutes and regulations administered by the Department and with 
which financial aid administrators are most familiar, whether a student 
qualifies as an ``affected individual'' is a frequent source of 
confusion. To help ensure that the terms are not misinterpreted and 
that affected individuals receive the waivers and modifications to 
which they are entitled under the HEROES Act, we provide these 
definitions below.
    Active duty has the meaning given that term in 10 U.S.C. 101(d)(1), 
but does not include active duty for training or attendance at a 
service school (e.g., the U.S. Military Academy or U.S. Naval Academy).
    Military operation means a contingency operation as that term is 
defined in 10 U.S.C. 101(a)(13).
    National emergency means a national emergency declared by the 
President of the United States.
    Qualifying National Guard duty during a war or other military 
operation or national emergency means service as a member of the 
National Guard on full-time National Guard duty (as defined in 10 
U.S.C. 101(d)(5)) under a call to active service authorized by the 
President or the Secretary of Defense for a period of more than 30 
consecutive days under 32 U.S.C. 502(f), in connection with a war, 
another military operation, or a national emergency declared by the 
President and supported by Federal funds.
    Serving on active duty during a war or other military operation or 
national emergency includes service by an individual who is--
    (A) A Reserve member of an Armed Force ordered to active duty under 
10 U.S.C. 12301(a), 12301(g), 12302, 12304, or 12306, or any retired 
member of an Armed Force ordered to active duty under 10 U.S.C. 688, 
for service in connection with a war or other military operation or 
national emergency, regardless of the location at which that active 
duty service is performed; and
    (B) Any other member of an Armed Force on active duty in connection 
with any war, operation, or emergency or subsequent actions or 
conditions who has been assigned to a duty station at a location other 
than the location at which the member is normally assigned.
    The following waivers and modifications are grouped into four 
categories, according to the affected individuals to whom they apply.
    Category 1: The Secretary is waiving or modifying the following 
requirements of title IV of the HEA and the Department of Education's 
(Department's) regulations for ALL affected individuals.

Need Analysis

    Section 480 of the HEA provides that, in the calculation of an 
applicant's EFC, the term ``total income,'' which is used in the 
determination of ``annual adjusted family income'' and ``available 
income,'' is equal to the applicant's, the applicant's spouse's, or the 
applicant's parent's AGI plus untaxed income and benefits for the 
second preceding tax year minus excludable income. The HEROES Act 
allows an institution to substitute AGI plus untaxed income and 
benefits received in the first calendar year of the award year for 
which such

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determination is made for any affected individual, and for his or her 
spouse and dependents, if applicable, in order to reflect more 
accurately the financial condition of an affected individual and his or 
her family. The Secretary has determined that an institution has the 
option of using the applicant's original EFC (the EFC based on the 
income and tax information reported on the FAFSA), the EFC based on the 
data from the first calendar year of the award year, or the EFC based 
on another annual income that more accurately reflects the family's 
current financial circumstances.
    If an institution chooses to use anything other than the original 
EFC, it should use the administrative professional judgment options 
discussed in the following section.

Professional Judgment

    Section 479A of the HEA specifically gives the FAA at an 
institution the authority to use professional judgment to make, on a 
case-by-case basis, adjustments to the cost of attendance or to the 
values of the items used in calculating the EFC to reflect a student's 
special circumstances. The Secretary is modifying this provision by 
removing the requirement that adjustments be made on a case-by-case 
basis for affected individuals. The use of professional judgment in 
Federal need analysis is discussed in the Federal Student Aid Handbook 
available at www.ifap.ed.gov.
    The Secretary encourages FAAs to use professional judgment to 
reflect more accurately the financial need of affected individuals. To 
that end, the Secretary encourages institutions to determine an 
affected individual's need using one of the options listed below:
     Using the AGI plus untaxed income and benefits received in 
the first calendar year of the award year;
     Using another annual income that more accurately reflects 
the family's current financial circumstances; or
     Making no modifications.
    The FAA must clearly document the reasons for any adjustment and 
the facts supporting the decision. In almost all cases, the FAA should 
have documentation from a third party with knowledge of the student's 
special circumstances. As usual, any professional judgment decisions 
made by an FAA that affect a student's eligibility for a subsidized 
student financial assistance program must be reported to the Central 
Processing System.

Return of Title IV Funds--Grant Overpayments Owed by the Student

    Section 484B(b)(2) of the HEA and 34 CFR 668.22(h)(3)(ii) require a 
student to return or repay, as appropriate, unearned grant funds for 
which the student is responsible under the Return of Title IV Funds 
calculation. For a student who withdraws from an institution because of 
his or her status as an affected individual, the Secretary is waiving 
these statutory and regulatory requirements so that a student is not 
required to return or repay any overpayment of grant funds based on the 
Return of Title IV Funds provisions.
    For these students, the Secretary also waives 34 CFR 668.22(h)(4), 
which:
     Requires an institution to notify a student of a grant 
overpayment and the actions the student must take to resolve the 
overpayment;
     Denies eligibility to a student who owes a grant 
overpayment and does not take an action to resolve the overpayment; and
     Requires an institution to refer a grant overpayment to 
the Secretary under certain conditions.
    Therefore, an institution is not required to contact the student, 
notify the National Student Loan Data System, or refer the overpayment 
to the Secretary. However, the institution must document in the 
student's file the amount of any overpayment as part of the 
documentation of the application of this waiver.
    The student is not required to return or repay an overpayment of 
grant funds based on the Return of Title IV Funds provision. Therefore, 
an institution must not apply any title IV credit balance to the grant 
overpayment prior to: Using a credit balance to pay authorized charges; 
paying any amount of the title IV credit balance to the student or 
parent, in the case of a parent PLUS loan; or using the credit balance 
to reduce the student's title IV loan debt (with the student's 
authorization) as provided in Dear Colleague Letter GEN-04-03 (February 
2004; revised November 2004).

Verification of AGI and U.S. Income Tax Paid

    Pursuant to 34 CFR 668.57(a)(3)(ii), for an individual who is 
required to file a U.S. income tax return and has been granted a filing 
extension by the Internal Revenue Service (IRS), an institution must 
accept, in lieu of an income tax return for verification of AGI or U.S. 
income tax paid:
     A copy of IRS Form 4868, ``Application for Automatic 
Extension of Time to File U.S. Individual Income Tax Return,'' that the 
individual filed with the IRS for the specified year, or a copy of the 
IRS's approval of an extension beyond the automatic six-month extension 
if the individual requested an additional extension of the filing time; 
and
     A copy of each IRS Form W-2 that the individual received 
for the specified year or, for a self-employed individual, a statement 
signed by the individual certifying the amount of AGI and U.S. income 
tax paid for the specified year.
    The Secretary is modifying the requirement of this provision so 
that the submission of a copy of IRS Form 4868 or a copy of the IRS's 
approval of an extension beyond the six-month extension is not required 
if an affected individual has not filed an income tax return by the 
filing deadline.
    For these individuals, an institution must accept, in lieu of an 
income tax return for verification of AGI and U.S. income tax paid:
     A statement from the individual certifying that he or she 
has not filed an income tax return or a request for a filing extension 
because he or she was called up for active duty or for qualifying 
National Guard duty during a war or other military operation or 
national emergency; and
     A copy of each W-2 received for the specified year or, for 
a self-employed individual, a statement by the individual certifying 
the amount of AGI and U.S. income tax paid for the specified year.
    An institution may request that an individual granted a filing 
extension submit tax information using the IRS Data Retrieval Tool, or 
by obtaining a tax return transcript from the IRS that lists tax 
account information for the specified year after the income tax return 
is filed. If an institution receives the tax information, it must 
verify the income information of the tax filer(s).
    Category 2: The Secretary is waiving or modifying requirements in 
the following provisions of title IV of the HEA and the Department's 
regulations for affected individuals who are serving on active duty or 
performing qualifying National Guard duty during a war or other 
military operation or national emergency, or who reside or are employed 
in a disaster area.

Return of Title IV Funds--Post-Withdrawal Disbursements of Loan Funds

    Under 34 CFR 668.22(a)(6)(iii)(A)(5) and (D), a student (or parent 
for a parent PLUS loan) must be provided a post-withdrawal disbursement 
of a title IV loan if the student (or parent) responds to an 
institution's notification of the

[[Page 48198]]

post-withdrawal disbursement within 14 days of the date that the 
institution sent the notice, or a later deadline set by the 
institution. If a student or parent submits a late response, an 
institution may, but is not required to, make the post-withdrawal 
disbursement.
    The Secretary is modifying this requirement so that, for a student 
who withdraws because of his or her status as an affected individual in 
this category and who is eligible for a post-withdrawal disbursement, 
the 14-day time period in which the student (or parent) must normally 
respond to the offer of the post-withdrawal disbursement is extended to 
45 days, or to a later deadline set by the institution. If the student 
or parent submits a response after the designated period, the 
institution may, but is not required to, make the post-withdrawal 
disbursement. As required under the current regulations, if the student 
or parent submits the timely response instructing the institution to 
make all or a portion of the post-withdrawal disbursement, or the 
institution chooses to make a post-withdrawal disbursement based on 
receipt of a late response, the institution must disburse the funds 
within 180 days of the date of the institution's determination that the 
student withdrew.

Leaves of Absence

    Under 34 CFR 668.22(d)(3)(iii)(B), a student is required to provide 
a written, signed, and dated request, which includes the reason for 
that request, for an approved leave of absence prior to the leave of 
absence. However, if unforeseen circumstances prevent a student from 
providing a prior written request, the institution may grant the 
student's request for a leave of absence if the institution documents 
its decision and collects the written request at a later date. It may 
be appropriate in certain limited cases for an institution to provide 
an approved leave of absence to a student who must interrupt his or her 
enrollment because he or she is an affected individual in this 
category. Therefore, the Secretary is waiving the requirement that the 
student provide a written request for affected individuals who have 
difficulty providing a written request as a result of being an affected 
individual in this category. The institution's documentation of its 
decision to grant the leave of absence must include, in addition to the 
reason for the leave of absence, the reason for waiving the requirement 
that the leave of absence be requested in writing.

Treatment of Title IV Credit Balances When a Student Withdraws

    Under 34 CFR 668.164(h)(2), an institution must pay any title IV 
credit balance to the student, or parent in the case of a parent PLUS 
loan, as soon as possible, but no later than: 14 days after the balance 
occurred if the balance occurred after the first day of class of a 
payment period; or 14 days after the first day of class of a payment 
period if the balance occurred on or before the first day of class of 
that payment period. If the student (or parent) has provided 
authorization, an institution may use a title IV credit balance to 
reduce the borrower's total title IV loan debt, not just the title IV 
loan debt for the period for which the Return of Title IV Funds 
calculation is performed.
    For students who withdraw because they are affected individuals in 
this category, the Secretary finds that the institution has met the 14-
day requirement under 34 CFR 668.164(h)(2) if, within that timeframe, 
the institution attempts to contact the student (or parent) to suggest 
that the institution be authorized to return the credit balance to the 
loan program(s).
    Based upon the instructions of the student (or parent), the 
institution must promptly return the funds to the title IV loan 
programs or pay the credit balance to the student (or parent).
    In addition, if an institution chooses to attempt to contact the 
student (or parent) for authorization to apply the credit balance to 
reduce the student's title IV loan debt, it must allow the student (or 
parent) 45 days to respond. If there is no response within 45 days, the 
institution must promptly pay the credit balance to the student (or 
parent) or return the funds to the title IV programs if the student (or 
parent) cannot be located.
    Consistent with the guidance provided in Dear Colleague Letter GEN-
04-03 (February 2004; revised November 2004), the institution may also 
choose to pay the credit balance to the student (or parent) without 
first requesting permission to apply the credit balance to reduce the 
student's title IV loan debt.

Cash Management--Student or Parent Request for Loan or TEACH Grant 
Cancellation

    Under 34 CFR 668.165(a)(4)(ii), an institution must return loan or 
TEACH Grant proceeds, cancel the loan or TEACH Grant, or do both, if 
the institution receives a loan or TEACH Grant cancellation request 
from a student or parent:
     By the later of the first day of a payment period or 14 
days after the date the institution notifies the student or parent of 
his or her right to cancel all or a portion of a loan or TEACH Grant, 
if the institution obtains affirmative confirmation from the student 
under 34 CFR 668.165(a)(6)(i); or
     Within 30 days of the date the institution notifies the 
student or parent of his or her right to cancel all or a portion of a 
loan, if the institution does not obtain affirmative confirmation from 
the student under 34 CFR 668.165(a)(6)(i).
    Under 34 CFR 668.165(a)(4)(iii), if an institution receives a loan 
cancellation request from a borrower after the period specified in 34 
CFR 668.165(a)(4)(ii), the institution may, but is not required to, 
comply with the request. For a student or parent who is an affected 
individual in this category, the Secretary is modifying this 
requirement so that an institution must allow at least 60 days for the 
student or parent to request the cancellation of all or a portion of a 
loan or TEACH Grant for which proceeds have been credited to the 
account at the institution. If an institution receives a loan or TEACH 
Grant cancellation request after the 60-day period, the institution 
may, but is not required to, comply with the request.

Cash Management--Student and Parent Authorizations

    Under 34 CFR 668.165(b)(1), an institution must obtain a written 
authorization from a student or parent, as applicable, to:
     Use title IV funds to pay for educationally related 
charges incurred by the student at the institution other than charges 
for tuition and fees and, as applicable, room and board; and
     Hold on behalf of the student or parent any title IV funds 
that would otherwise be paid directly to the student or parent.
    The Secretary is modifying these requirements to permit an 
institution to accept an authorization provided by a student (or parent 
for a parent PLUS loan) orally, rather than in writing, if the student 
or parent is prevented from providing a written authorization because 
of his or her status as an affected individual in this category. The 
institution must document the oral consent or authorization.

Satisfactory Academic Progress

    Institutions may, in cases where a student failed to meet the 
institution's satisfactory academic progress standards as a direct 
result of being an affected individual in this category, apply the 
exception provision of ``other special circumstances'' contained in 34 
CFR 668.34(a)(9)(ii).

[[Page 48199]]

Borrowers in a Grace Period

    Sections 428(b)(7)(D) and 464(c)(7) of the HEA and 34 CFR 
674.31(b)(2)(i)(C), 682.209(a)(5), and 685.207(b)(2)(ii) and (c)(2)(ii) 
exclude from a Federal Perkins Loan, FFEL, or Direct Loan borrower's 
(title IV borrower's) initial grace period any period during which a 
borrower who is a member of an Armed Forces reserve component is called 
or ordered to active duty for a period of more than 30 days. The 
statutory and regulatory provisions further require that any single 
excluded period may not exceed three years and must include the time 
necessary for the borrower to resume enrollment at the next available 
regular enrollment period. Lastly, any borrower who is in a grace 
period when called or ordered to active duty is entitled to another 
six- or nine-month grace period, as applicable, upon completion of the 
excluded period of service.
    The Secretary is modifying these statutory and regulatory 
requirements to exclude from a title IV borrower's initial grace 
period, any period, not to exceed three years, during which a borrower 
is an affected individual in this category. Any excluded period must 
include the time necessary for an affected individual in this category 
to resume enrollment at the next available enrollment period.

Borrowers in an ``In-School'' Period

    A title IV borrower is considered to be in an ``in-school'' status 
and is not required to make payments on a title IV loan that has not 
entered repayment as long as the borrower is enrolled at an eligible 
institution on at least a half-time basis. Under sections 428(b)(7) and 
464(c)(1)(A) of the HEA and 34 CFR 674.31(b)(2), 682.209(a), and 
685.207(b), (c), and (e)(2) and (3), when a title IV borrower ceases to 
be enrolled at an eligible institution on at least a half-time basis, 
the borrower is obligated to begin repayment of the loan after a six- 
or nine-month grace period, depending on the title IV loan program and 
the terms of the borrower's promissory note. The Secretary is modifying 
the statutory and regulatory requirements that obligate an ``in-
school'' borrower who has dropped below half-time status to begin 
repayment if the borrower is an affected individual in this category, 
by requiring the holder of the loan to maintain the loan in an ``in-
school'' status for a period not to exceed three years, including the 
time necessary for the borrower to resume enrollment in the next 
regular enrollment period, if the borrower is planning to go back to 
school. The Secretary will pay interest that accrues on a subsidized 
Stafford Loan as a result of the extension of a borrower's in-school 
status under this modification.

Borrowers in an In-School, Graduate Fellowship, or Rehabilitation 
Training Program Deferment

    Under sections 427(a)(2)(C)(i), 428(b)(1)(M)(i), 428B(a)(2) and 
(d)(1), 428C(b)(4)(C), 455(f)(2)(A), and 464(c)(2)(A)(i) of the HEA and 
34 CFR 674.34(b)(1), 682.210(b)(1)(i), (ii), and (iii), 682.210(s)(2), 
(3), and (4), 685.204(b), 685.204(d), and 685.204(e), a title IV 
borrower is eligible for a deferment on the loan during periods after 
the commencement or resumption of the repayment period on the loan when 
the borrower is enrolled and in attendance as a regular student on at 
least a half-time basis (or full-time, if required by the terms of the 
borrower's promissory note) at an eligible institution; enrolled and in 
attendance as a regular student in a course of study that is part of a 
graduate fellowship program; engaged in an eligible rehabilitation 
training program; or, for Federal Perkins Loan borrowers, engaged in 
graduate or post-graduate fellowship-supported study outside the United 
States. The borrower's deferment period ends when the borrower no 
longer meets one of the above conditions.
    The Secretary is waiving the statutory and regulatory eligibility 
requirements for this deferment for title IV borrowers who were 
required to interrupt a graduate fellowship or rehabilitation training 
program deferment, or who were in an in-school deferment but who left 
school, because of their status as an affected individual in this 
category. The holder of the loan is required to maintain the loan in 
the graduate fellowship, rehabilitation training program, or in-school 
deferment status for a period not to exceed three years during which 
the borrower is an affected individual in this category. This period 
includes the time necessary for the borrower to resume his or her 
graduate fellowship program, resume a rehabilitation training program, 
or resume enrollment in the next regular enrollment period if the 
borrower returns to school. The Secretary will pay interest that 
accrues on a FFEL subsidized Stafford Loan or not charge interest on a 
Direct subsidized Stafford Loan as a result of extending a borrower's 
eligibility for deferment under this waiver.

Forbearance

    Under section 464(e) of the HEA and 34 CFR 674.33(d)(2), there is a 
three-year cumulative limit on the length of forbearances that a 
Federal Perkins Loan borrower can receive. To assist Federal Perkins 
Loan borrowers who are affected individuals in this category, the 
Secretary is waiving these statutory and regulatory requirements so 
that any forbearance based on a borrower's status as an affected 
individual in this category is excluded from the three-year cumulative 
limit.
    Under section 464(e) of the HEA and 34 CFR 674.33(d)(2) and (3), a 
school must receive a request and supporting documentation from a 
Federal Perkins Loan borrower before granting the borrower a 
forbearance, the terms of which must be in the form of a written 
agreement. The Secretary is waiving these statutory and regulatory 
requirements to require an institution to grant forbearance based on 
the borrower's status as an affected individual in this category for a 
one-year period, including a three-month ``transition period'' 
immediately following, without supporting documentation or a written 
agreement, based on the written or oral request of the borrower, a 
member of the borrower's family, or another reliable source. The 
purpose of the three-month transition period is to assist borrowers so 
that they will not be required to reenter repayment immediately after 
they are no longer affected individuals in this category. In order to 
grant the borrower forbearance beyond the initial twelve- to fifteen-
month period, supporting documentation from the borrower, a member of 
the borrower's family, or another reliable source is required.
    Under 34 CFR 682.211(i)(1), a FFEL borrower who requests 
forbearance because of a military mobilization must provide the loan 
holder with documentation showing that he or she is subject to a 
military mobilization. The Secretary is waiving this requirement to 
allow a borrower who is not otherwise eligible for the military service 
deferment under 34 CFR 682.210(t), 685.204(h), and 674.34(h) to receive 
forbearance at the request of the borrower, a member of the borrower's 
family, or another reliable source for a one-year period, including a 
three-month transition period that immediately follows, without 
providing the loan holder with documentation. To grant the borrower 
forbearance beyond this period, documentation supporting the borrower's 
military mobilization must be submitted to the loan holder.
    The Secretary will apply the forbearance waivers and modifications 
in this section to loans held by the Department.

[[Page 48200]]

Collection of Defaulted Loans

    In accordance with 34 CFR part 674, subpart C--Due Diligence, and 
682.410(b)(6), schools and guaranty agencies must attempt to recover 
amounts owed from defaulted Federal Perkins Loan and FFEL borrowers, 
respectively. The Secretary is waiving the regulatory provisions that 
require schools and guaranty agencies to attempt collection on 
defaulted loans for the time period during which the borrower is an 
affected individual in this category and for a three-month transition 
period. The school or guaranty agency may stop collection activities 
upon notification by the borrower, a member of the borrower's family, 
or another reliable source that the borrower is an affected individual 
in this category. Collection activities must resume after the borrower 
has notified the school or guaranty agency that he or she is no longer 
an affected individual and the three-month transition period has 
expired. The loan holder must document in the loan file why it has 
suspended collection activities on the loan, and the loan holder is not 
required to obtain evidence of the borrower's status while collection 
activities have been suspended. The Secretary will apply the waivers 
described in this paragraph to loans held by the Department.

Loan Cancellation

    Depending on the loan program, borrowers may qualify for loan 
cancellation if they are employed fulltime in specified occupations, 
such as teaching or in law enforcement, pursuant to sections 428J, 
460(b)(1), and 465(a)(2)(A)-(M) and (3) of the HEA, and 34 CFR 674.53, 
674.55, 674.55(b), 674.56, 674.57, 674.58, 674.60, 682.216, and 
685.217. Generally, to qualify for loan cancellation, borrowers must 
perform uninterrupted, otherwise qualifying service for a specified 
length of time (for example, one year) or for consecutive periods of 
time, such as five consecutive years.
    For borrowers who are affected individuals in this category, the 
Secretary is waiving the requirements that apply to the various loan 
cancellations that such periods of service be uninterrupted or 
consecutive, if the reason for the interruption is related to the 
borrower's status as an affected individual in this category. 
Therefore, the service period required for the borrower to receive or 
retain a loan cancellation for which he or she is otherwise eligible 
will not be considered interrupted by any period during which the 
borrower is an affected individual in this category, including the 
three-month transition period. The Secretary will apply the waivers 
described in this paragraph to loans held by the Department.

Rehabilitation of Defaulted Loans

    A borrower of a Direct Loan or FFEL Loan must make nine voluntary 
on-time, monthly payments over ten consecutive months to rehabilitate a 
defaulted loan in accordance with section 428F(a) of the HEA and 34 CFR 
682.405 and 685.211(f). Federal Perkins Loan borrowers must make nine 
consecutive, on-time monthly payments to rehabilitate a defaulted 
Federal Perkins Loan in accordance with section 464(h)(1)(A) of the HEA 
and 34 CFR 674.39. To assist title IV borrowers who are affected 
individuals in this category, the Secretary is waiving the statutory 
and regulatory requirements that payments made to rehabilitate a loan 
must be consecutive or made over no more than ten consecutive months. 
Loan holders should not treat any payment missed during the time that a 
borrower is an affected individual in this category, or during the 
three-month transition period, as an interruption in the number of 
monthly, on-time payments required to be made consecutively, or the 
number of consecutive months in which payment is required to be made, 
for loan rehabilitation. If there is an arrangement or agreement in 
place between the borrower and loan holder and the borrower makes a 
payment during this period, the loan holder must treat the payment as 
an eligible payment in the required series of payments. When the 
borrower is no longer an affected individual in this category, and the 
three-month transition period has expired, the required sequence of 
qualifying payments may resume at the point they were discontinued as a 
result of the borrower's status. The Secretary will apply the waivers 
described in this paragraph to loans held by the Department.

Reinstatement of Title IV Eligibility

    Under sections 428F(b) and 464(h)(2) of the HEA and under the 
definition of ``satisfactory repayment arrangement'' in 34 CFR 
668.35(a)(2), 674.2(b), 682.200(b), and 685.102(b), a defaulted title 
IV borrower may make six consecutive, on-time, voluntary, full, monthly 
payments to reestablish eligibility for title IV student financial 
assistance. To assist title IV borrowers who are affected individuals 
in this category, the Secretary is waiving statutory and regulatory 
provisions that require the borrower to make consecutive payments to 
reestablish eligibility for title IV student financial assistance. Loan 
holders should not treat any payment missed during the time that a 
borrower is an affected individual in this category as an interruption 
in the six consecutive, on-time, voluntary, full, monthly payments 
required for reestablishing title IV eligibility. If there is an 
arrangement or agreement in place between the borrower and loan holder 
and the borrower makes a payment during this period, the loan holder 
must treat the payment as an eligible payment in the required series of 
payments. When the borrower is no longer an affected individual or in 
the three-month transition period for purposes of this document, the 
required sequence of qualifying payments may resume at the point they 
were discontinued as a result of the borrower's status. The Secretary 
will apply the waivers described in this paragraph to loans held by the 
Department.

Consolidation of Defaulted Loans

    Under the definition of ``satisfactory repayment arrangement'' in 
34 CFR 685.102(b), a defaulted FFEL or Direct Loan borrower may 
establish eligibility to consolidate a defaulted loan in the Direct 
Consolidation Loan Program by making three consecutive, voluntary, on-
time, monthly, full payments on the loan. The Secretary is waiving the 
regulatory requirement that such payments be consecutive. FFEL loan 
holders should not treat any payment missed during the time that a 
borrower is an affected individual in this category as an interruption 
in the three consecutive, voluntary, monthly, full, on-time payments 
required for establishing eligibility to consolidate a defaulted loan 
in the Direct Consolidation Loan Program. If there is an arrangement or 
agreement in place between the borrower and loan holder and the 
borrower makes a payment during this period, the loan holder must treat 
the payment as an eligible payment in the required series of payments. 
When the borrower is no longer an affected individual in this category 
or in the three-month transition period, the required sequence of 
qualifying payments may resume at the point they were discontinued as a 
result of the borrower's status as an affected individual. The 
Secretary will apply the waivers described in this paragraph to loans 
held by the Department.

[[Page 48201]]

Annual Income Documentation Requirements for Direct Loan and FFEL 
Borrowers Under the IBR, PAYE, REPAYE, and ICR Plans

    Section 493C(c) of the HEA requires the Secretary to establish 
procedures for annually determining a borrower's eligibility for the 
IBR plan, including verification of a borrower's annual income and the 
annual amount due on the total amount of the borrower's loans. Section 
455(e)(1) of the HEA provides that the Secretary may obtain such 
information as is reasonably necessary regarding the income of a 
borrower for the purpose of determining the annual repayment obligation 
of the borrower under an income-contingent repayment plan. Under 34 CFR 
682.215(e), 685.209(a)(5), (b)(3), and (c)(4), and 685.221(e), 
borrowers repaying under the IBR, PAYE, REPAYE, or ICR plans must 
annually provide their loan holder with documentation of their income 
and family size so that the loan holder may, if necessary, adjust the 
borrower's monthly payment amount based on changes in the borrower's 
income or family size. Borrowers are required to provide information 
about their annual income and family size to the loan holder each year 
by a deadline specified by the holder. If a borrower who is repaying 
his or her loans under the IBR, PAYE, or ICR plans fails to provide the 
required information by the specified deadline, the borrower's monthly 
payment amount is adjusted and is no longer based on the borrower's 
income. This adjusted monthly payment amount is generally higher than 
the payment amount that was based on the borrower's income.
    The Secretary is waiving these statutory and regulatory provisions 
to require loan holders to maintain an affected borrower's payment at 
the most recently calculated IBR, PAYE, REPAYE, or ICR monthly payment 
amount for up to a three-year period, including a three-month 
transition period immediately following the three-year period, if the 
borrower's status as an affected individual in this category has 
prevented the borrower from providing documentation of updated income 
and family size by the specified deadline.
    Category 3: The Secretary is waiving or modifying the following 
provisions of title IV of the HEA and the Department's regulations for 
affected individuals who are serving on active duty or performing 
qualifying National Guard duty during a war or other military operation 
or national emergency.

Institutional Charges and Refunds

    The HEROES Act encourages institutions to provide a full refund of 
tuition, fees, and other institutional charges for the portion of a 
period of instruction that a student was unable to complete, or for 
which the student did not receive academic credit, because he or she 
was called up for active duty or for qualifying National Guard duty 
during a war or other military operation or national emergency. 
Alternatively, the Secretary encourages institutions to provide a 
credit in a comparable amount against future charges.
    The HEROES Act also recommends that institutions consider providing 
easy and flexible reenrollment options to students who are affected 
individuals in this category. At a minimum, an institution must comply 
with the requirements of 34 CFR 668.18, which addresses the readmission 
requirements for service members serving for a period of more than 30 
consecutive days under certain conditions. Some institutions must also 
abide by the protections provided by the Principles of Excellence 
(Executive Order 13607, issued April 27, 2012) to service members who 
are absent for shorter periods of service. Institutions agree to comply 
with the Principles of Excellence through arrangements with the 
Department of Defense and the Department of Veterans Affairs. Executive 
Order 13607 is available at www.whitehouse.gov/the-press-office/2012/04/27/executive-order-establishing-principles-excellence-educational-instituti.
    Of course, an institution may provide such treatment to affected 
individuals other than those who are called up to active duty or for 
qualifying National Guard duty during a war or other military operation 
or national emergency.
    Before an institution makes a refund of institutional charges, it 
must perform the required Return of Title IV Funds calculations based 
upon the originally assessed institutional charges. After determining 
the amount that the institution must return to the title IV Federal 
student aid programs, any reduction of institutional charges may take 
into account the funds that the institution is required to return. In 
other words, we do not expect that an institution would both return 
funds to the Federal programs and also provide a refund of those same 
funds to the student.
    Category 4: The Secretary is waiving or modifying the following 
provisions of the HEA and the Department's regulations for dependents 
of affected individuals who are serving on active duty or performing 
qualifying National Guard duty during a war or other military operation 
or national emergency.

Verification Signature Requirements

    The Department's regulations in 34 CFR 668.57(b), (c), and (d) 
require signatures to verify the number of family members in the 
household, the number of family members enrolled in postsecondary 
institutions, or other information specified in the annual Federal 
Register document that announces the FAFSA information that an 
institution and an applicant may be required to verify, as well as the 
acceptable documentation for verifying that FAFSA information. The 
Secretary is waiving the requirement for a parent's signature on any 
verification documentation required for title IV eligibility for a 
dependent student when no relevant parent can provide the required 
signature because of the parent's status as an affected individual in 
this category.

Required Signatures on the FAFSA, SAR, or in Connection With Submitting 
Corrections Electronically

    Generally, when a dependent applicant for title IV aid submits the 
FAFSA or submits corrections to a previously submitted FAFSA, at least 
one parent's signature is required on the FAFSA, SAR, or in connection 
with submitting corrections electronically. The Secretary is waiving 
this requirement so that an applicant need not provide a parent's 
signature when there is no relevant parent who can provide the required 
signature because of the parent's status as an affected individual in 
this category. In these situations, a student's high school counselor 
or the FAA may sign on behalf of the parent as long as the applicant 
provides adequate documentation concerning the parent's inability to 
provide a signature due to the parent's status as an affected 
individual in this category.
    Electronic Access to This Document: 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 via the Federal Digital System 
at: www.thefederalregister.org/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

[[Page 48202]]

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.

(Catalog of Federal Domestic Assistance Numbers: 84.007 Federal 
Supplemental Educational Opportunity Grant Program; 84.032 Federal 
Family Education Loan Program; 84.032 Federal PLUS Program; 84.033 
Federal Work Study Program; 84.038 Federal Perkins Loan Program; 
84.063 Federal Pell Grant Program; and 84.268 William D. Ford 
Federal Direct Loan Program.)


    Program Authority:  20 U.S.C. 1071, 1082, 1087a, 1087aa, Part F-
1.


    Dated: October 12, 2017.
Kathleen A. Smith,
Acting Assistant Secretary for Postsecondary Education.
[FR Doc. 2017-22489 Filed 10-16-17; 8:45 am]
 BILLING CODE 4000-01-P



                                                              Federal Register / Vol. 82, No. 199 / Tuesday, October 17, 2017 / Rules and Regulations                                        48195

                                             DEPARTMENT OF EDUCATION                                 20202. Telephone: (202) 203–9155 or by                issue waivers and modifications of
                                                                                                     email: Wendy.Macias@ed.gov.                           statutory and regulatory provisions.
                                             34 CFR Parts 668, 674, 682, and 685                     SUPPLEMENTARY INFORMATION: On                            On December 26, 2007, the Secretary
                                                                                                     September 29, 2017 (82 FR 45465), the                 published a document in the Federal
                                             Federal Student Aid Programs                                                                                  Register (72 FR 72947) extending the
                                                                                                     Secretary published a document in the
                                             (Student Assistance General                                                                                   waivers and modifications published on
                                             Provisions, Federal Perkins Loan                        Federal Register announcing the
                                                                                                     updated waivers and modifications. We                 December 12, 2003, to September 30,
                                             Program, Federal Family Education                                                                             2012. In that document, the Secretary
                                             Loan Program, and the Federal Direct                    are republishing this document to
                                                                                                     include the definitions of certain terms              also indicated an intent to review the
                                             Loan Program)                                                                                                 waivers and modifications published on
                                                                                                     used in this document. We have made
                                             AGENCY:  Office of Postsecondary                        no changes to the waivers and                         December 12, 2003, in light of statutory
                                             Education, Department of Education.                     modifications.                                        and regulatory changes and to consider
                                             ACTION: Updated waivers and                                In a document published in the                     whether to change some or all of the
                                             modifications of statutory and                          Federal Register on December 12, 2003                 published waivers and modifications.
                                                                                                                                                              In a document in the Federal Register
                                             regulatory requirements; republication.                 (68 FR 69312), the Secretary exercised
                                                                                                                                                           published on September 27, 2012 (77 FR
                                                                                                     the authority under the HEROES Act
                                             SUMMARY:   On September 29, 2017, the                                                                         59311), the Secretary published updated
                                                                                                     (Pub. L. 108–76, 20 U.S.C. 1098bb(b))
                                             Secretary published a document in the                                                                         waivers and modifications to reflect the
                                                                                                     and announced waivers and
                                             Federal Register announcing the                                                                               results of the review. Under that
                                                                                                     modifications of statutory and
                                             updated waivers and modifications of                                                                          document, the updated waivers and
                                                                                                     regulatory provisions designed to assist
                                             statutory and regulatory requirements                                                                         modifications expire on September 30,
                                                                                                     ‘‘affected individuals.’’ Under 20 U.S.C.             2017.
                                             governing the Federal student financial                 1098ee(2), the term ‘‘affected
                                             aid programs under the authority of the                                                                          The Secretary is updating the waivers
                                                                                                     individual’’ means an individual who:                 and modifications to reflect statutory
                                             Higher Education Relief Opportunities                      • Is serving on active duty during a
                                             for Students Act of 2003 (HEROES Act).                                                                        and regulatory changes that have
                                                                                                     war or other military operation or                    occurred since the September 27, 2012,
                                             We are republishing this document to                    national emergency;
                                             include the definitions of certain terms                                                                      document was published. The waivers
                                                                                                        • Is performing qualifying National                and modifications in this document will
                                             used in this document. We have made
                                                                                                     Guard duty during a war or other                      expire on September 30, 2022. With a
                                             no changes to the waivers and
                                                                                                     military operation or national                        few limited exceptions, the waivers and
                                             modifications.
                                                                                                     emergency;                                            modifications in this document are the
                                             DATES: The waivers and modifications                       • Resides or is employed in an area                same waivers and modifications
                                             began on September 29, 2017. The                        that is declared a disaster area by any               published in the September 27, 2012,
                                             waivers and modifications in this                       Federal, State, or local official in                  Federal Register document. However,
                                             document expire on September 30,                        connection with a national emergency;                 the 2012 waivers and modifications
                                             2022.                                                   or                                                    have been updated in the following
                                             FOR FURTHER INFORMATION CONTACT: For                       • Suffered direct economic hardship                areas:
                                             provisions related to the title IV loan                 as a direct result of a war or other                     (1) The Secretary updated the need
                                             programs (Federal Perkins Loan                          military operation or national                        analysis modification to reflect the
                                             Program, Federal Family Education                       emergency, as determined by the                       change in which tax year’s information
                                             Loan (FFEL) Program, and Federal                        Secretary.                                            is collected on the Free Application for
                                             Direct Loan (Direct Loan) Program):                        Please note that these waivers and                 Federal Student Aid (FAFSA) and used
                                             Barbara Hoblitzell, U.S. Department of                  modifications do not apply to an                      to calculate the applicant’s expected
                                             Education, 400 Maryland Ave. SW.,                       individual who resides or is employed                 family contribution (EFC). Previously
                                             Room 6W253, Washington, DC 20202.                       in an area declared a disaster area by                when completing a FAFSA, a student
                                             Telephone: (202) 453–7583 or by email:                  any Federal, State, or local official                 provided income information from the
                                             Barbara.Hoblitzell@ed.gov or Brian                      unless that declaration has been made                 most recently completed tax year prior
                                             Smith, U.S. Department of Education,                    in connection with a national                         to the beginning of the financial aid
                                             400 Maryland Ave. SW., Room 7E222,                      emergency.                                            application cycle (e.g., 2015 income
                                             Washington, DC 20202. Telephone:                           Under the HEROES Act, the                          information for the 2016–2017 FAFSA).
                                             (202) 453–7440 or by email:                             Secretary’s authority to provide the                  Beginning with the 2017–2018 FAFSA,
                                             Brian.Smith@ed.gov. For other                           waivers and modifications would have                  income information is collected from
                                             provisions: Wendy Macias, U.S.                          expired on September 30, 2005.                        one tax year earlier—referred to as the
                                             Department of Education, 400 Maryland                   However, Public Law 109–78, enacted                   ‘‘prior-prior year.’’ This change was
                                             Ave. SW., Room 6C111, Washington, DC                    on September 30, 2005, extended the                   made under the authority of section
                                             20202. Telephone: (202) 203–9155 or by                  expiration date of the Secretary’s                    480(a)(1)(B) of the Higher Education Act
                                             email: Wendy.Macias@ed.gov.                             authority to September 30, 2007.                      of 1965, as amended (HEA). This
                                                If you use a telecommunications                      Accordingly, in a document in the                     modification was also updated to make
                                             device for the deaf (TDD) or text                       Federal Register published on October                 it consistent with the modification to
                                             telephone (TTY), call the Federal Relay                 20, 2005 (70 FR 61037), the Secretary                 professional judgment included in this
                                             Service (FRS), toll free, at 1–800–877–                 extended the expiration of the waivers                document, which provides three options
                                             8339.                                                   and modifications published on                        that a financial aid administrator (FAA)
                                                Individuals with disabilities can                    December 12, 2003, to September 30,
nlaroche on DSK9F9SC42PROD with RULES




                                                                                                                                                           may use to make adjustments to the
                                             obtain this document in an accessible                   2007.                                                 values of the items used to calculate the
                                             format (e.g., Braille, large print,                        Public Law 110–93, enacted on                      EFC to reflect a student’s special
                                             audiotape, or compact disc) by                          September 30, 2007, eliminated the                    circumstances.
                                             contacting Wendy Macias, U.S.                           September 30, 2007, expiration date of                   (2) For the professional judgment
                                             Department of Education, 400 Maryland                   the HEROES Act, thereby making                        modification, the Secretary clarified that
                                             Ave. SW., Room 6C111, Washington, DC                    permanent the Secretary’s authority to                in addition to using income information


                                        VerDate Sep<11>2014   14:55 Oct 16, 2017   Jkt 244001   PO 00000   Frm 00003   Fmt 4700   Sfmt 4700   E:\FR\FM\17OCR1.SGM   17OCR1


                                             48196            Federal Register / Vol. 82, No. 199 / Tuesday, October 17, 2017 / Rules and Regulations

                                             from the first or second calendar year of               1098bb(a). In accordance with the                     the U.S. Military Academy or U.S. Naval
                                             the award year, an institution may use                  HEROES Act, the Secretary is providing                Academy).
                                             another annual income that more                         the waivers and modifications of                        Military operation means a
                                             accurately reflects the family’s current                statutory and regulatory requirements                 contingency operation as that term is
                                             financial circumstances.                                applicable to the student financial                   defined in 10 U.S.C. 101(a)(13).
                                                (3) The Secretary updated the                        assistance programs under title IV of the               National emergency means a national
                                             modifications related to verification of                HEA that the Secretary believes are                   emergency declared by the President of
                                             adjusted gross income (AGI) and U.S.                    appropriate to ensure that:                           the United States.
                                             income tax paid so that affected                           • Affected individuals who are                       Qualifying National Guard duty
                                             individuals under this category are no                  recipients of student financial assistance            during a war or other military operation
                                             longer required to provide a signature                  under title IV are not placed in a worse              or national emergency means service as
                                             on the statement certifying that he or                  position financially in relation to that              a member of the National Guard on full-
                                             she has not filed an income tax return                  financial assistance because they are                 time National Guard duty (as defined in
                                             or a request for a filing extension                     affected individuals;                                 10 U.S.C. 101(d)(5)) under a call to
                                             because he or she was called up for                        • Affected individuals who are                     active service authorized by the
                                             active duty or for qualifying National                  recipients of student financial assistance            President or the Secretary of Defense for
                                             Guard duty during a war or other                        are not unduly subject to administrative              a period of more than 30 consecutive
                                             military operation or national                          burden or inadvertent, technical                      days under 32 U.S.C. 502(f), in
                                             emergency; or certifying the amount of                  violations or defaults;                               connection with a war, another military
                                             AGI and U.S. income tax paid for the                       • Affected individuals are not                     operation, or a national emergency
                                             specified year.                                         penalized when a determination of need                declared by the President and supported
                                                (4) The Secretary extended the waiver                for student financial assistance is                   by Federal funds.
                                             assisting affected individuals with                     calculated;                                             Serving on active duty during a war or
                                             regard to the annual reevaluation                                                                             other military operation or national
                                                                                                        • Affected individuals are not
                                             requirements for FFEL and Direct Loan                                                                         emergency includes service by an
                                                                                                     required to return or repay an
                                             borrowers who are repaying loans under                                                                        individual who is—
                                                                                                     overpayment of grant funds based on
                                             the Income-Based Repayment (IBR)                                                                                (A) A Reserve member of an Armed
                                                                                                     the HEA’s Return of Title IV Funds
                                             plan, and Direct Loan borrowers who                                                                           Force ordered to active duty under 10
                                                                                                     provision; and
                                             are repaying loans under the Income-                                                                          U.S.C. 12301(a), 12301(g), 12302, 12304,
                                             Contingent Repayment (ICR) plan to                         • Entities that participate in the
                                                                                                                                                           or 12306, or any retired member of an
                                             include borrowers who are repaying                      student financial assistance programs
                                                                                                                                                           Armed Force ordered to active duty
                                             Direct Loans under the Pay As You Earn                  under title IV of the HEA and that are
                                                                                                                                                           under 10 U.S.C. 688, for service in
                                             (PAYE) or Revised Pay As You Earn                       located in areas that are declared
                                                                                                                                                           connection with a war or other military
                                             (REPAYE) repayment plans.                               disaster areas by any Federal, State, or
                                                                                                                                                           operation or national emergency,
                                                (5) For the fourth category of affected              local official in connection with a
                                                                                                                                                           regardless of the location at which that
                                             individuals to which waivers and                        national emergency, or whose
                                                                                                                                                           active duty service is performed; and
                                             modifications apply, as described later                 operations are significantly affected by                (B) Any other member of an Armed
                                             in this document, the Secretary removed                 such a disaster, receive temporary relief             Force on active duty in connection with
                                             the reference to spouses of affected                    from administrative requirements.                     any war, operation, or emergency or
                                             individuals who are serving on active                      In 20 U.S.C. 1098bb(b)(1), the                     subsequent actions or conditions who
                                             duty or performing qualifying National                  HEROES Act further provides that                      has been assigned to a duty station at a
                                             Guard duty during a war or other                        section 437 of the General Education                  location other than the location at
                                             military operation or national                          Provisions Act (20 U.S.C. 1232) and                   which the member is normally assigned.
                                             emergency, since the waivers under this                 section 553 of the Administrative                       The following waivers and
                                             category only pertain to the dependent                  Procedure Act (5 U.S.C. 553) do not                   modifications are grouped into four
                                             student of such affected individuals.                   apply to the contents of this document.               categories, according to the affected
                                                (6) The Secretary updated the waiver                    In 20 U.S.C. 1098ee, the HEROES Act                individuals to whom they apply.
                                             related to verification signature                       provides definitions critical to                        Category 1: The Secretary is waiving
                                             requirements to waive the requirement                   determining whether a student is an                   or modifying the following requirements
                                             for a parental signature on any                         ‘‘affected individual’’ under the act and,            of title IV of the HEA and the
                                             verification documentation required for                 if so, to which waivers and                           Department of Education’s
                                             title IV eligibility for a dependent                    modifications the affected individual is              (Department’s) regulations for ALL
                                             student because of the parent’s status as               entitled. Because these definitions are               affected individuals.
                                             an affected individual.                                 located outside of the statutes and
                                                (7) The Secretary made a technical                   regulations administered by the                       Need Analysis
                                             change to the waiver related to the                     Department and with which financial                     Section 480 of the HEA provides that,
                                             section on required signatures on the                   aid administrators are most familiar,                 in the calculation of an applicant’s EFC,
                                             FAFSA, the Student Aid Report (SAR),                    whether a student qualifies as an                     the term ‘‘total income,’’ which is used
                                             and the Institutional Student                           ‘‘affected individual’’ is a frequent                 in the determination of ‘‘annual
                                             Information Record (ISIR), replacing the                source of confusion. To help ensure that              adjusted family income’’ and ‘‘available
                                             reference to ‘‘ISIR’’ with ‘‘or submitting              the terms are not misinterpreted and                  income,’’ is equal to the applicant’s, the
                                             corrections electronically’’. The                       that affected individuals receive the                 applicant’s spouse’s, or the applicant’s
                                                                                                     waivers and modifications to which                    parent’s AGI plus untaxed income and
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                                             Secretary also changed the reference to
                                             ‘‘responsible parent’’ to ‘‘relevant                    they are entitled under the HEROES                    benefits for the second preceding tax
                                             parent’’ to mean the parent whose                       Act, we provide these definitions below.              year minus excludable income. The
                                             information is reported on the FAFSA.                      Active duty has the meaning given                  HEROES Act allows an institution to
                                                The Secretary is issuing these waivers               that term in 10 U.S.C. 101(d)(1), but                 substitute AGI plus untaxed income and
                                             and modifications under the authority                   does not include active duty for training             benefits received in the first calendar
                                             of the HEROES Act, 20 U.S.C.                            or attendance at a service school (e.g.,              year of the award year for which such


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                                                              Federal Register / Vol. 82, No. 199 / Tuesday, October 17, 2017 / Rules and Regulations                                         48197

                                             determination is made for any affected                  Return of Title IV Funds—Grant                        Tax Return,’’ that the individual filed
                                             individual, and for his or her spouse                   Overpayments Owed by the Student                      with the IRS for the specified year, or a
                                             and dependents, if applicable, in order                    Section 484B(b)(2) of the HEA and 34               copy of the IRS’s approval of an
                                             to reflect more accurately the financial                CFR 668.22(h)(3)(ii) require a student to             extension beyond the automatic six-
                                             condition of an affected individual and                 return or repay, as appropriate,                      month extension if the individual
                                             his or her family. The Secretary has                    unearned grant funds for which the                    requested an additional extension of the
                                             determined that an institution has the                  student is responsible under the Return               filing time; and
                                             option of using the applicant’s original                                                                         • A copy of each IRS Form W–2 that
                                                                                                     of Title IV Funds calculation. For a
                                             EFC (the EFC based on the income and                                                                          the individual received for the specified
                                                                                                     student who withdraws from an
                                             tax information reported on the                                                                               year or, for a self-employed individual,
                                                                                                     institution because of his or her status
                                             FAFSA), the EFC based on the data from                                                                        a statement signed by the individual
                                                                                                     as an affected individual, the Secretary
                                             the first calendar year of the award year,                                                                    certifying the amount of AGI and U.S.
                                                                                                     is waiving these statutory and regulatory
                                             or the EFC based on another annual                                                                            income tax paid for the specified year.
                                                                                                     requirements so that a student is not                    The Secretary is modifying the
                                             income that more accurately reflects the                required to return or repay any                       requirement of this provision so that the
                                             family’s current financial                              overpayment of grant funds based on                   submission of a copy of IRS Form 4868
                                             circumstances.                                          the Return of Title IV Funds provisions.              or a copy of the IRS’s approval of an
                                               If an institution chooses to use                         For these students, the Secretary also             extension beyond the six-month
                                             anything other than the original EFC, it                waives 34 CFR 668.22(h)(4), which:                    extension is not required if an affected
                                             should use the administrative                              • Requires an institution to notify a              individual has not filed an income tax
                                             professional judgment options                           student of a grant overpayment and the                return by the filing deadline.
                                             discussed in the following section.                     actions the student must take to resolve                 For these individuals, an institution
                                                                                                     the overpayment;                                      must accept, in lieu of an income tax
                                             Professional Judgment                                      • Denies eligibility to a student who              return for verification of AGI and U.S.
                                                                                                     owes a grant overpayment and does not                 income tax paid:
                                                Section 479A of the HEA specifically                 take an action to resolve the
                                             gives the FAA at an institution the                                                                              • A statement from the individual
                                                                                                     overpayment; and                                      certifying that he or she has not filed an
                                             authority to use professional judgment                     • Requires an institution to refer a
                                             to make, on a case-by-case basis,                                                                             income tax return or a request for a
                                                                                                     grant overpayment to the Secretary                    filing extension because he or she was
                                             adjustments to the cost of attendance or                under certain conditions.                             called up for active duty or for
                                             to the values of the items used in                         Therefore, an institution is not                   qualifying National Guard duty during a
                                             calculating the EFC to reflect a student’s              required to contact the student, notify               war or other military operation or
                                             special circumstances. The Secretary is                 the National Student Loan Data System,                national emergency; and
                                             modifying this provision by removing                    or refer the overpayment to the                          • A copy of each W–2 received for the
                                             the requirement that adjustments be                     Secretary. However, the institution must              specified year or, for a self-employed
                                             made on a case-by-case basis for affected               document in the student’s file the                    individual, a statement by the
                                             individuals. The use of professional                    amount of any overpayment as part of                  individual certifying the amount of AGI
                                             judgment in Federal need analysis is                    the documentation of the application of               and U.S. income tax paid for the
                                             discussed in the Federal Student Aid                    this waiver.                                          specified year.
                                             Handbook available at www.ifap.ed.gov.                     The student is not required to return                 An institution may request that an
                                                The Secretary encourages FAAs to use                 or repay an overpayment of grant funds                individual granted a filing extension
                                             professional judgment to reflect more                   based on the Return of Title IV Funds                 submit tax information using the IRS
                                             accurately the financial need of affected               provision. Therefore, an institution                  Data Retrieval Tool, or by obtaining a
                                             individuals. To that end, the Secretary                 must not apply any title IV credit                    tax return transcript from the IRS that
                                             encourages institutions to determine an                 balance to the grant overpayment prior                lists tax account information for the
                                             affected individual’s need using one of                 to: Using a credit balance to pay                     specified year after the income tax
                                             the options listed below:                               authorized charges; paying any amount                 return is filed. If an institution receives
                                                                                                     of the title IV credit balance to the                 the tax information, it must verify the
                                                • Using the AGI plus untaxed income                  student or parent, in the case of a parent            income information of the tax filer(s).
                                             and benefits received in the first                      PLUS loan; or using the credit balance                   Category 2: The Secretary is waiving
                                             calendar year of the award year;                        to reduce the student’s title IV loan debt            or modifying requirements in the
                                                • Using another annual income that                   (with the student’s authorization) as                 following provisions of title IV of the
                                             more accurately reflects the family’s                   provided in Dear Colleague Letter GEN–                HEA and the Department’s regulations
                                             current financial circumstances; or                     04–03 (February 2004; revised                         for affected individuals who are serving
                                                • Making no modifications.                           November 2004).                                       on active duty or performing qualifying
                                                                                                     Verification of AGI and U.S. Income                   National Guard duty during a war or
                                                The FAA must clearly document the                                                                          other military operation or national
                                             reasons for any adjustment and the facts                Tax Paid
                                                                                                                                                           emergency, or who reside or are
                                             supporting the decision. In almost all                     Pursuant to 34 CFR 668.57(a)(3)(ii),               employed in a disaster area.
                                             cases, the FAA should have                              for an individual who is required to file
                                             documentation from a third party with                   a U.S. income tax return and has been                 Return of Title IV Funds—Post-
                                             knowledge of the student’s special                      granted a filing extension by the Internal            Withdrawal Disbursements of Loan
                                             circumstances. As usual, any                            Revenue Service (IRS), an institution                 Funds
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                                             professional judgment decisions made                    must accept, in lieu of an income tax                   Under 34 CFR 668.22(a)(6)(iii)(A)(5)
                                             by an FAA that affect a student’s                       return for verification of AGI or U.S.                and (D), a student (or parent for a parent
                                             eligibility for a subsidized student                    income tax paid:                                      PLUS loan) must be provided a post-
                                             financial assistance program must be                       • A copy of IRS Form 4868,                         withdrawal disbursement of a title IV
                                             reported to the Central Processing                      ‘‘Application for Automatic Extension                 loan if the student (or parent) responds
                                             System.                                                 of Time to File U.S. Individual Income                to an institution’s notification of the


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                                             48198            Federal Register / Vol. 82, No. 199 / Tuesday, October 17, 2017 / Rules and Regulations

                                             post-withdrawal disbursement within                     Treatment of Title IV Credit Balances                 the institution notifies the student or
                                             14 days of the date that the institution                When a Student Withdraws                              parent of his or her right to cancel all
                                             sent the notice, or a later deadline set by                Under 34 CFR 668.164(h)(2), an                     or a portion of a loan or TEACH Grant,
                                             the institution. If a student or parent                 institution must pay any title IV credit              if the institution obtains affirmative
                                             submits a late response, an institution                 balance to the student, or parent in the              confirmation from the student under 34
                                             may, but is not required to, make the                   case of a parent PLUS loan, as soon as                CFR 668.165(a)(6)(i); or
                                             post-withdrawal disbursement.                           possible, but no later than: 14 days after               • Within 30 days of the date the
                                                                                                     the balance occurred if the balance                   institution notifies the student or parent
                                                The Secretary is modifying this                                                                            of his or her right to cancel all or a
                                             requirement so that, for a student who                  occurred after the first day of class of a
                                                                                                     payment period; or 14 days after the                  portion of a loan, if the institution does
                                             withdraws because of his or her status                                                                        not obtain affirmative confirmation from
                                             as an affected individual in this category              first day of class of a payment period if
                                                                                                     the balance occurred on or before the                 the student under 34 CFR
                                             and who is eligible for a post-                                                                               668.165(a)(6)(i).
                                                                                                     first day of class of that payment period.
                                             withdrawal disbursement, the 14-day                                                                              Under 34 CFR 668.165(a)(4)(iii), if an
                                                                                                     If the student (or parent) has provided
                                             time period in which the student (or                                                                          institution receives a loan cancellation
                                                                                                     authorization, an institution may use a
                                             parent) must normally respond to the                                                                          request from a borrower after the period
                                                                                                     title IV credit balance to reduce the
                                             offer of the post-withdrawal                            borrower’s total title IV loan debt, not              specified in 34 CFR 668.165(a)(4)(ii), the
                                             disbursement is extended to 45 days, or                 just the title IV loan debt for the period            institution may, but is not required to,
                                             to a later deadline set by the institution.             for which the Return of Title IV Funds                comply with the request. For a student
                                             If the student or parent submits a                      calculation is performed.                             or parent who is an affected individual
                                             response after the designated period, the                  For students who withdraw because                  in this category, the Secretary is
                                             institution may, but is not required to,                they are affected individuals in this                 modifying this requirement so that an
                                             make the post-withdrawal                                category, the Secretary finds that the                institution must allow at least 60 days
                                             disbursement. As required under the                     institution has met the 14-day                        for the student or parent to request the
                                             current regulations, if the student or                  requirement under 34 CFR 668.164(h)(2)                cancellation of all or a portion of a loan
                                             parent submits the timely response                      if, within that timeframe, the institution            or TEACH Grant for which proceeds
                                             instructing the institution to make all or              attempts to contact the student (or                   have been credited to the account at the
                                             a portion of the post-withdrawal                        parent) to suggest that the institution be            institution. If an institution receives a
                                             disbursement, or the institution chooses                authorized to return the credit balance               loan or TEACH Grant cancellation
                                             to make a post-withdrawal                               to the loan program(s).                               request after the 60-day period, the
                                             disbursement based on receipt of a late                    Based upon the instructions of the                 institution may, but is not required to,
                                             response, the institution must disburse                 student (or parent), the institution must             comply with the request.
                                             the funds within 180 days of the date of                promptly return the funds to the title IV             Cash Management—Student and Parent
                                             the institution’s determination that the                loan programs or pay the credit balance
                                                                                                                                                           Authorizations
                                             student withdrew.                                       to the student (or parent).
                                                                                                        In addition, if an institution chooses                Under 34 CFR 668.165(b)(1), an
                                             Leaves of Absence                                       to attempt to contact the student (or                 institution must obtain a written
                                                                                                     parent) for authorization to apply the                authorization from a student or parent,
                                                Under 34 CFR 668.22(d)(3)(iii)(B), a                 credit balance to reduce the student’s                as applicable, to:
                                             student is required to provide a written,               title IV loan debt, it must allow the                    • Use title IV funds to pay for
                                             signed, and dated request, which                        student (or parent) 45 days to respond.               educationally related charges incurred
                                             includes the reason for that request, for               If there is no response within 45 days,               by the student at the institution other
                                             an approved leave of absence prior to                   the institution must promptly pay the                 than charges for tuition and fees and, as
                                             the leave of absence. However, if                       credit balance to the student (or parent)             applicable, room and board; and
                                             unforeseen circumstances prevent a                      or return the funds to the title IV                      • Hold on behalf of the student or
                                             student from providing a prior written                  programs if the student (or parent)                   parent any title IV funds that would
                                             request, the institution may grant the                  cannot be located.                                    otherwise be paid directly to the student
                                             student’s request for a leave of absence                   Consistent with the guidance                       or parent.
                                             if the institution documents its decision               provided in Dear Colleague Letter GEN–                   The Secretary is modifying these
                                                                                                     04–03 (February 2004; revised                         requirements to permit an institution to
                                             and collects the written request at a later
                                                                                                     November 2004), the institution may                   accept an authorization provided by a
                                             date. It may be appropriate in certain
                                                                                                     also choose to pay the credit balance to              student (or parent for a parent PLUS
                                             limited cases for an institution to
                                                                                                     the student (or parent) without first                 loan) orally, rather than in writing, if the
                                             provide an approved leave of absence to
                                                                                                     requesting permission to apply the                    student or parent is prevented from
                                             a student who must interrupt his or her
                                                                                                     credit balance to reduce the student’s                providing a written authorization
                                             enrollment because he or she is an                                                                            because of his or her status as an
                                                                                                     title IV loan debt.
                                             affected individual in this category.                                                                         affected individual in this category. The
                                             Therefore, the Secretary is waiving the                 Cash Management—Student or Parent                     institution must document the oral
                                             requirement that the student provide a                  Request for Loan or TEACH Grant                       consent or authorization.
                                             written request for affected individuals                Cancellation
                                             who have difficulty providing a written                   Under 34 CFR 668.165(a)(4)(ii), an                  Satisfactory Academic Progress
                                             request as a result of being an affected                institution must return loan or TEACH                   Institutions may, in cases where a
                                             individual in this category. The                                                                              student failed to meet the institution’s
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                                                                                                     Grant proceeds, cancel the loan or
                                             institution’s documentation of its                      TEACH Grant, or do both, if the                       satisfactory academic progress standards
                                             decision to grant the leave of absence                  institution receives a loan or TEACH                  as a direct result of being an affected
                                             must include, in addition to the reason                 Grant cancellation request from a                     individual in this category, apply the
                                             for the leave of absence, the reason for                student or parent:                                    exception provision of ‘‘other special
                                             waiving the requirement that the leave                    • By the later of the first day of a                circumstances’’ contained in 34 CFR
                                             of absence be requested in writing.                     payment period or 14 days after the date              668.34(a)(9)(ii).


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                                                              Federal Register / Vol. 82, No. 199 / Tuesday, October 17, 2017 / Rules and Regulations                                        48199

                                             Borrowers in a Grace Period                             Loan as a result of the extension of a                forbearances that a Federal Perkins Loan
                                                Sections 428(b)(7)(D) and 464(c)(7) of               borrower’s in-school status under this                borrower can receive. To assist Federal
                                             the HEA and 34 CFR 674.31(b)(2)(i)(C),                  modification.                                         Perkins Loan borrowers who are
                                             682.209(a)(5), and 685.207(b)(2)(ii) and                                                                      affected individuals in this category, the
                                                                                                     Borrowers in an In-School, Graduate
                                             (c)(2)(ii) exclude from a Federal Perkins                                                                     Secretary is waiving these statutory and
                                                                                                     Fellowship, or Rehabilitation Training
                                             Loan, FFEL, or Direct Loan borrower’s                   Program Deferment                                     regulatory requirements so that any
                                             (title IV borrower’s) initial grace period                                                                    forbearance based on a borrower’s status
                                                                                                        Under sections 427(a)(2)(C)(i),                    as an affected individual in this category
                                             any period during which a borrower                      428(b)(1)(M)(i), 428B(a)(2) and (d)(1),
                                             who is a member of an Armed Forces                                                                            is excluded from the three-year
                                                                                                     428C(b)(4)(C), 455(f)(2)(A), and                      cumulative limit.
                                             reserve component is called or ordered                  464(c)(2)(A)(i) of the HEA and 34 CFR
                                             to active duty for a period of more than                                                                         Under section 464(e) of the HEA and
                                                                                                     674.34(b)(1), 682.210(b)(1)(i), (ii), and             34 CFR 674.33(d)(2) and (3), a school
                                             30 days. The statutory and regulatory                   (iii), 682.210(s)(2), (3), and (4),
                                             provisions further require that any                                                                           must receive a request and supporting
                                                                                                     685.204(b), 685.204(d), and 685.204(e), a             documentation from a Federal Perkins
                                             single excluded period may not exceed                   title IV borrower is eligible for a
                                             three years and must include the time                                                                         Loan borrower before granting the
                                                                                                     deferment on the loan during periods                  borrower a forbearance, the terms of
                                             necessary for the borrower to resume                    after the commencement or resumption
                                             enrollment at the next available regular                                                                      which must be in the form of a written
                                                                                                     of the repayment period on the loan                   agreement. The Secretary is waiving
                                             enrollment period. Lastly, any borrower                 when the borrower is enrolled and in
                                             who is in a grace period when called or                                                                       these statutory and regulatory
                                                                                                     attendance as a regular student on at                 requirements to require an institution to
                                             ordered to active duty is entitled to                   least a half-time basis (or full-time, if
                                             another six- or nine-month grace period,                                                                      grant forbearance based on the
                                                                                                     required by the terms of the borrower’s               borrower’s status as an affected
                                             as applicable, upon completion of the                   promissory note) at an eligible
                                             excluded period of service.                                                                                   individual in this category for a one-
                                                                                                     institution; enrolled and in attendance
                                                The Secretary is modifying these                                                                           year period, including a three-month
                                                                                                     as a regular student in a course of study
                                             statutory and regulatory requirements to                                                                      ‘‘transition period’’ immediately
                                                                                                     that is part of a graduate fellowship
                                             exclude from a title IV borrower’s initial                                                                    following, without supporting
                                                                                                     program; engaged in an eligible
                                             grace period, any period, not to exceed                                                                       documentation or a written agreement,
                                                                                                     rehabilitation training program; or, for
                                             three years, during which a borrower is                                                                       based on the written or oral request of
                                                                                                     Federal Perkins Loan borrowers,
                                             an affected individual in this category.                                                                      the borrower, a member of the
                                                                                                     engaged in graduate or post-graduate
                                             Any excluded period must include the                                                                          borrower’s family, or another reliable
                                                                                                     fellowship-supported study outside the
                                             time necessary for an affected                                                                                source. The purpose of the three-month
                                                                                                     United States. The borrower’s deferment
                                             individual in this category to resume                   period ends when the borrower no                      transition period is to assist borrowers
                                             enrollment at the next available                        longer meets one of the above                         so that they will not be required to
                                             enrollment period.                                      conditions.                                           reenter repayment immediately after
                                                                                                        The Secretary is waiving the statutory             they are no longer affected individuals
                                             Borrowers in an ‘‘In-School’’ Period                                                                          in this category. In order to grant the
                                                                                                     and regulatory eligibility requirements
                                                A title IV borrower is considered to be              for this deferment for title IV borrowers             borrower forbearance beyond the initial
                                             in an ‘‘in-school’’ status and is not                   who were required to interrupt a                      twelve- to fifteen-month period,
                                             required to make payments on a title IV                 graduate fellowship or rehabilitation                 supporting documentation from the
                                             loan that has not entered repayment as                  training program deferment, or who                    borrower, a member of the borrower’s
                                             long as the borrower is enrolled at an                  were in an in-school deferment but who                family, or another reliable source is
                                             eligible institution on at least a half-time            left school, because of their status as an            required.
                                             basis. Under sections 428(b)(7) and                     affected individual in this category. The                Under 34 CFR 682.211(i)(1), a FFEL
                                             464(c)(1)(A) of the HEA and 34 CFR                      holder of the loan is required to                     borrower who requests forbearance
                                             674.31(b)(2), 682.209(a), and 685.207(b),               maintain the loan in the graduate                     because of a military mobilization must
                                             (c), and (e)(2) and (3), when a title IV                fellowship, rehabilitation training                   provide the loan holder with
                                             borrower ceases to be enrolled at an                    program, or in-school deferment status                documentation showing that he or she
                                             eligible institution on at least a half-time            for a period not to exceed three years                is subject to a military mobilization. The
                                             basis, the borrower is obligated to begin               during which the borrower is an                       Secretary is waiving this requirement to
                                             repayment of the loan after a six- or                   affected individual in this category. This            allow a borrower who is not otherwise
                                             nine-month grace period, depending on                   period includes the time necessary for                eligible for the military service
                                             the title IV loan program and the terms                 the borrower to resume his or her                     deferment under 34 CFR 682.210(t),
                                             of the borrower’s promissory note. The                  graduate fellowship program, resume a                 685.204(h), and 674.34(h) to receive
                                             Secretary is modifying the statutory and                rehabilitation training program, or                   forbearance at the request of the
                                             regulatory requirements that obligate an                resume enrollment in the next regular                 borrower, a member of the borrower’s
                                             ‘‘in-school’’ borrower who has dropped                  enrollment period if the borrower                     family, or another reliable source for a
                                             below half-time status to begin                         returns to school. The Secretary will pay             one-year period, including a three-
                                             repayment if the borrower is an affected                interest that accrues on a FFEL                       month transition period that
                                             individual in this category, by requiring               subsidized Stafford Loan or not charge                immediately follows, without providing
                                             the holder of the loan to maintain the                  interest on a Direct subsidized Stafford              the loan holder with documentation. To
                                             loan in an ‘‘in-school’’ status for a                   Loan as a result of extending a                       grant the borrower forbearance beyond
                                             period not to exceed three years,                                                                             this period, documentation supporting
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                                                                                                     borrower’s eligibility for deferment
                                             including the time necessary for the                    under this waiver.                                    the borrower’s military mobilization
                                             borrower to resume enrollment in the                                                                          must be submitted to the loan holder.
                                             next regular enrollment period, if the                  Forbearance                                              The Secretary will apply the
                                             borrower is planning to go back to                        Under section 464(e) of the HEA and                 forbearance waivers and modifications
                                             school. The Secretary will pay interest                 34 CFR 674.33(d)(2), there is a three-                in this section to loans held by the
                                             that accrues on a subsidized Stafford                   year cumulative limit on the length of                Department.


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                                             48200            Federal Register / Vol. 82, No. 199 / Tuesday, October 17, 2017 / Rules and Regulations

                                             Collection of Defaulted Loans                           affected individual in this category,                 consecutive payments to reestablish
                                                In accordance with 34 CFR part 674,                  including the three-month transition                  eligibility for title IV student financial
                                             subpart C—Due Diligence, and                            period. The Secretary will apply the                  assistance. Loan holders should not
                                             682.410(b)(6), schools and guaranty                     waivers described in this paragraph to                treat any payment missed during the
                                             agencies must attempt to recover                        loans held by the Department.                         time that a borrower is an affected
                                             amounts owed from defaulted Federal                     Rehabilitation of Defaulted Loans                     individual in this category as an
                                             Perkins Loan and FFEL borrowers,                                                                              interruption in the six consecutive, on-
                                                                                                        A borrower of a Direct Loan or FFEL
                                             respectively. The Secretary is waiving                                                                        time, voluntary, full, monthly payments
                                                                                                     Loan must make nine voluntary on-
                                             the regulatory provisions that require                  time, monthly payments over ten                       required for reestablishing title IV
                                             schools and guaranty agencies to                        consecutive months to rehabilitate a                  eligibility. If there is an arrangement or
                                             attempt collection on defaulted loans for               defaulted loan in accordance with                     agreement in place between the
                                             the time period during which the                        section 428F(a) of the HEA and 34 CFR                 borrower and loan holder and the
                                             borrower is an affected individual in                   682.405 and 685.211(f). Federal Perkins               borrower makes a payment during this
                                             this category and for a three-month                     Loan borrowers must make nine                         period, the loan holder must treat the
                                             transition period. The school or                        consecutive, on-time monthly payments                 payment as an eligible payment in the
                                             guaranty agency may stop collection                     to rehabilitate a defaulted Federal                   required series of payments. When the
                                             activities upon notification by the                     Perkins Loan in accordance with section               borrower is no longer an affected
                                             borrower, a member of the borrower’s                    464(h)(1)(A) of the HEA and 34 CFR                    individual or in the three-month
                                             family, or another reliable source that                 674.39. To assist title IV borrowers who              transition period for purposes of this
                                             the borrower is an affected individual in               are affected individuals in this category,            document, the required sequence of
                                             this category. Collection activities must               the Secretary is waiving the statutory                qualifying payments may resume at the
                                             resume after the borrower has notified                  and regulatory requirements that                      point they were discontinued as a result
                                             the school or guaranty agency that he or                payments made to rehabilitate a loan                  of the borrower’s status. The Secretary
                                             she is no longer an affected individual                 must be consecutive or made over no
                                             and the three-month transition period                                                                         will apply the waivers described in this
                                                                                                     more than ten consecutive months. Loan                paragraph to loans held by the
                                             has expired. The loan holder must                       holders should not treat any payment
                                             document in the loan file why it has                                                                          Department.
                                                                                                     missed during the time that a borrower
                                             suspended collection activities on the                  is an affected individual in this                     Consolidation of Defaulted Loans
                                             loan, and the loan holder is not required               category, or during the three-month
                                             to obtain evidence of the borrower’s                    transition period, as an interruption in                 Under the definition of ‘‘satisfactory
                                             status while collection activities have                 the number of monthly, on-time                        repayment arrangement’’ in 34 CFR
                                             been suspended. The Secretary will                      payments required to be made                          685.102(b), a defaulted FFEL or Direct
                                             apply the waivers described in this                     consecutively, or the number of                       Loan borrower may establish eligibility
                                             paragraph to loans held by the                          consecutive months in which payment                   to consolidate a defaulted loan in the
                                             Department.                                             is required to be made, for loan                      Direct Consolidation Loan Program by
                                             Loan Cancellation                                       rehabilitation. If there is an arrangement            making three consecutive, voluntary,
                                                                                                     or agreement in place between the                     on-time, monthly, full payments on the
                                                Depending on the loan program,                       borrower and loan holder and the                      loan. The Secretary is waiving the
                                             borrowers may qualify for loan                          borrower makes a payment during this                  regulatory requirement that such
                                             cancellation if they are employed                       period, the loan holder must treat the                payments be consecutive. FFEL loan
                                             fulltime in specified occupations, such                 payment as an eligible payment in the                 holders should not treat any payment
                                             as teaching or in law enforcement,                      required series of payments. When the
                                             pursuant to sections 428J, 460(b)(1), and                                                                     missed during the time that a borrower
                                                                                                     borrower is no longer an affected                     is an affected individual in this category
                                             465(a)(2)(A)–(M) and (3) of the HEA,                    individual in this category, and the
                                             and 34 CFR 674.53, 674.55, 674.55(b),                                                                         as an interruption in the three
                                                                                                     three-month transition period has
                                             674.56, 674.57, 674.58, 674.60, 682.216,                                                                      consecutive, voluntary, monthly, full,
                                                                                                     expired, the required sequence of
                                             and 685.217. Generally, to qualify for                  qualifying payments may resume at the                 on-time payments required for
                                             loan cancellation, borrowers must                       point they were discontinued as a result              establishing eligibility to consolidate a
                                             perform uninterrupted, otherwise                        of the borrower’s status. The Secretary               defaulted loan in the Direct
                                             qualifying service for a specified length               will apply the waivers described in this              Consolidation Loan Program. If there is
                                             of time (for example, one year) or for                  paragraph to loans held by the                        an arrangement or agreement in place
                                             consecutive periods of time, such as five               Department.                                           between the borrower and loan holder
                                             consecutive years.                                                                                            and the borrower makes a payment
                                                For borrowers who are affected                       Reinstatement of Title IV Eligibility                 during this period, the loan holder must
                                             individuals in this category, the                          Under sections 428F(b) and 464(h)(2)               treat the payment as an eligible payment
                                             Secretary is waiving the requirements                   of the HEA and under the definition of                in the required series of payments.
                                             that apply to the various loan                          ‘‘satisfactory repayment arrangement’’                When the borrower is no longer an
                                             cancellations that such periods of                      in 34 CFR 668.35(a)(2), 674.2(b),                     affected individual in this category or in
                                             service be uninterrupted or consecutive,                682.200(b), and 685.102(b), a defaulted               the three-month transition period, the
                                             if the reason for the interruption is                   title IV borrower may make six                        required sequence of qualifying
                                             related to the borrower’s status as an                  consecutive, on-time, voluntary, full,                payments may resume at the point they
                                             affected individual in this category.                   monthly payments to reestablish
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                                                                                                                                                           were discontinued as a result of the
                                             Therefore, the service period required                  eligibility for title IV student financial            borrower’s status as an affected
                                             for the borrower to receive or retain a                 assistance. To assist title IV borrowers              individual. The Secretary will apply the
                                             loan cancellation for which he or she is                who are affected individuals in this
                                                                                                                                                           waivers described in this paragraph to
                                             otherwise eligible will not be                          category, the Secretary is waiving
                                                                                                                                                           loans held by the Department.
                                             considered interrupted by any period                    statutory and regulatory provisions that
                                             during which the borrower is an                         require the borrower to make


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                                                              Federal Register / Vol. 82, No. 199 / Tuesday, October 17, 2017 / Rules and Regulations                                       48201

                                             Annual Income Documentation                             Institutional Charges and Refunds                     duty or performing qualifying National
                                             Requirements for Direct Loan and FFEL                      The HEROES Act encourages                          Guard duty during a war or other
                                             Borrowers Under the IBR, PAYE,                          institutions to provide a full refund of              military operation or national
                                             REPAYE, and ICR Plans                                   tuition, fees, and other institutional                emergency.

                                                Section 493C(c) of the HEA requires                  charges for the portion of a period of                Verification Signature Requirements
                                                                                                     instruction that a student was unable to                 The Department’s regulations in 34
                                             the Secretary to establish procedures for
                                                                                                     complete, or for which the student did                CFR 668.57(b), (c), and (d) require
                                             annually determining a borrower’s
                                                                                                     not receive academic credit, because he               signatures to verify the number of
                                             eligibility for the IBR plan, including
                                                                                                     or she was called up for active duty or               family members in the household, the
                                             verification of a borrower’s annual
                                                                                                     for qualifying National Guard duty                    number of family members enrolled in
                                             income and the annual amount due on
                                                                                                     during a war or other military operation              postsecondary institutions, or other
                                             the total amount of the borrower’s loans.               or national emergency. Alternatively,
                                             Section 455(e)(1) of the HEA provides                                                                         information specified in the annual
                                                                                                     the Secretary encourages institutions to              Federal Register document that
                                             that the Secretary may obtain such                      provide a credit in a comparable amount
                                             information as is reasonably necessary                                                                        announces the FAFSA information that
                                                                                                     against future charges.                               an institution and an applicant may be
                                             regarding the income of a borrower for                     The HEROES Act also recommends
                                             the purpose of determining the annual                                                                         required to verify, as well as the
                                                                                                     that institutions consider providing easy             acceptable documentation for verifying
                                             repayment obligation of the borrower                    and flexible reenrollment options to
                                             under an income-contingent repayment                                                                          that FAFSA information. The Secretary
                                                                                                     students who are affected individuals in              is waiving the requirement for a parent’s
                                             plan. Under 34 CFR 682.215(e),                          this category. At a minimum, an                       signature on any verification
                                             685.209(a)(5), (b)(3), and (c)(4), and                  institution must comply with the                      documentation required for title IV
                                             685.221(e), borrowers repaying under                    requirements of 34 CFR 668.18, which                  eligibility for a dependent student when
                                             the IBR, PAYE, REPAYE, or ICR plans                     addresses the readmission requirements                no relevant parent can provide the
                                             must annually provide their loan holder                 for service members serving for a period              required signature because of the
                                             with documentation of their income and                  of more than 30 consecutive days under                parent’s status as an affected individual
                                             family size so that the loan holder may,                certain conditions. Some institutions                 in this category.
                                             if necessary, adjust the borrower’s                     must also abide by the protections
                                             monthly payment amount based on                         provided by the Principles of Excellence              Required Signatures on the FAFSA,
                                             changes in the borrower’s income or                     (Executive Order 13607, issued April                  SAR, or in Connection With Submitting
                                             family size. Borrowers are required to                  27, 2012) to service members who are                  Corrections Electronically
                                             provide information about their annual                  absent for shorter periods of service.                   Generally, when a dependent
                                             income and family size to the loan                      Institutions agree to comply with the                 applicant for title IV aid submits the
                                             holder each year by a deadline specified                Principles of Excellence through                      FAFSA or submits corrections to a
                                             by the holder. If a borrower who is                     arrangements with the Department of                   previously submitted FAFSA, at least
                                             repaying his or her loans under the IBR,                Defense and the Department of Veterans                one parent’s signature is required on the
                                             PAYE, or ICR plans fails to provide the                 Affairs. Executive Order 13607 is                     FAFSA, SAR, or in connection with
                                             required information by the specified                   available at www.whitehouse.gov/the-                  submitting corrections electronically.
                                             deadline, the borrower’s monthly                        press-office/2012/04/27/executive-                    The Secretary is waiving this
                                             payment amount is adjusted and is no                    order-establishing-principles-                        requirement so that an applicant need
                                             longer based on the borrower’s income.                  excellence-educational-instituti.                     not provide a parent’s signature when
                                             This adjusted monthly payment amount                       Of course, an institution may provide              there is no relevant parent who can
                                             is generally higher than the payment                    such treatment to affected individuals                provide the required signature because
                                             amount that was based on the                            other than those who are called up to                 of the parent’s status as an affected
                                             borrower’s income.                                      active duty or for qualifying National                individual in this category. In these
                                                The Secretary is waiving these                       Guard duty during a war or other                      situations, a student’s high school
                                             statutory and regulatory provisions to                  military operation or national                        counselor or the FAA may sign on
                                             require loan holders to maintain an                     emergency.                                            behalf of the parent as long as the
                                                                                                        Before an institution makes a refund               applicant provides adequate
                                             affected borrower’s payment at the most
                                                                                                     of institutional charges, it must perform             documentation concerning the parent’s
                                             recently calculated IBR, PAYE,
                                                                                                     the required Return of Title IV Funds                 inability to provide a signature due to
                                             REPAYE, or ICR monthly payment
                                                                                                     calculations based upon the originally                the parent’s status as an affected
                                             amount for up to a three-year period,
                                                                                                     assessed institutional charges. After                 individual in this category.
                                             including a three-month transition
                                                                                                     determining the amount that the                          Electronic Access to This Document:
                                             period immediately following the three-                                                                       The official version of this document is
                                                                                                     institution must return to the title IV
                                             year period, if the borrower’s status as                                                                      the document published in the Federal
                                                                                                     Federal student aid programs, any
                                             an affected individual in this category                                                                       Register. Free internet access to the
                                                                                                     reduction of institutional charges may
                                             has prevented the borrower from                                                                               official edition of the Federal Register
                                                                                                     take into account the funds that the
                                             providing documentation of updated                      institution is required to return. In other           and the Code of Federal Regulations is
                                             income and family size by the specified                 words, we do not expect that an                       available via the Federal Digital System
                                             deadline.                                               institution would both return funds to                at: www.gpo.gov/fdsys. At this site you
                                                Category 3: The Secretary is waiving                 the Federal programs and also provide                 can view this document, as well as all
                                             or modifying the following provisions of                                                                      other documents of this Department
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                                                                                                     a refund of those same funds to the
                                             title IV of the HEA and the Department’s                student.                                              published in the Federal Register, in
                                             regulations for affected individuals who                   Category 4: The Secretary is waiving               text or Portable Document Format
                                             are serving on active duty or performing                or modifying the following provisions of              (PDF). To use PDF you must have
                                             qualifying National Guard duty during a                 the HEA and the Department’s                          Adobe Acrobat Reader, which is
                                             war or other military operation or                      regulations for dependents of affected                available free at the site. You may also
                                             national emergency.                                     individuals who are serving on active                 access documents of the Department


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                                             48202            Federal Register / Vol. 82, No. 199 / Tuesday, October 17, 2017 / Rules and Regulations

                                             published in the Federal Register by                    Identification No. EPA–R01–OAR–                       implement and enforce certain provisions of
                                             using the article search feature at:                    2017–0514. Copies of documents                        the NSPS.
                                             www.federalregister.gov. Specifically,                  pertaining to this action are available for           Delegation Request
                                             through the advanced search feature at                  public inspection at our Region 1 office                 VT ANR requested partial delegation to
                                             this site, you can limit your search to                 during normal business hours. All                     implement and enforce the following
                                             documents published by the                              documents in the electronic docket are                provisions of the NSPS at 40 CFR 60.539a
                                             Department.                                             listed in the www.regulations.gov index.              and 60.5482:
                                             (Catalog of Federal Domestic Assistance                 Although listed in the index, some                       1. Enforcement of prohibitions on the
                                             Numbers: 84.007 Federal Supplemental                    information is not publicly available,                installation and operation of affected wood
                                             Educational Opportunity Grant Program;                  i.e., CBI or other information whose                  heaters and central heaters in a manner
                                             84.032 Federal Family Education Loan                    disclosure is restricted by statute.                  inconsistent with the installation and
                                             Program; 84.032 Federal PLUS Program;                                                                         owner’s manual;
                                                                                                     Certain other material, such as
                                             84.033 Federal Work Study Program; 84.038                                                                        2. Enforcement of prohibitions on
                                                                                                     copyrighted material, is not placed on                operation of catalytic wood heaters or central
                                             Federal Perkins Loan Program; 84.063
                                                                                                     the Internet and will be publicly                     heaters where the catalyst has been
                                             Federal Pell Grant Program; and 84.268
                                             William D. Ford Federal Direct Loan                     available only in hard copy form.                     deactivated or removed;
                                             Program.)                                               Publicly available docket materials are                  3. Enforcement of prohibitions on
                                                                                                     available either electronically in                    advertisement and/or sale of uncertified
                                               Program Authority: 20 U.S.C. 1071, 1082,              www.regulations.gov or in hard copy at                model lines;
                                             1087a, 1087aa, Part F–1.                                the Office of Ecosystem Protection, U.S.                 4. Enforcement of prohibitions on
                                                                                                                                                           advertisement and/or sale of affected wood
                                                                                                     Environmental Protection Agency, EPA
                                               Dated: October 12, 2017.                                                                                    heaters and central heaters that do not have
                                                                                                     New England Regional Office, 5 Post                   the required permanent label;
                                             Kathleen A. Smith,
                                                                                                     Office Square, Boston, MA. EPA                           5. Enforcement of proper labeling of
                                             Acting Assistant Secretary for Postsecondary            requests that if at all possible, you
                                             Education.                                                                                                    affected wood heaters and central heaters;
                                                                                                     contact the contact listed in the FOR                 and
                                             [FR Doc. 2017–22489 Filed 10–16–17; 8:45 am]                                                                     6. Enforcement of compliance with other
                                                                                                     FURTHER INFORMATION CONTACT section to
                                             BILLING CODE 4000–01–P
                                                                                                     schedule your inspection. The Regional                labeling requirements for wood heaters and
                                                                                                     Office’s official hours of business are               central heaters.
                                                                                                     Monday through Friday, 8:30 a.m. to                   Delegation of Authority
                                             ENVIRONMENTAL PROTECTION                                4:30 a.m., excluding legal holidays.                     On December 15, 2016, VT ANR adopted
                                             AGENCY                                                  FOR FURTHER INFORMATION CONTACT: Eric                 and amended the Vermont Air Pollution
                                             40 CFR Part 60                                          Wortman, Air Permits, Toxics and                      Control Regulations at § 5–204 for Wood
                                                                                                     Indoor Programs Unit, Office of                       Stoves and Central Heaters. In the May 19,
                                             [EPA–R01–OAR–2017–0514; FRL–9969–57–                    Ecosystem Protection, U.S.                            2017 letter, VT ANR provided copies of its
                                             Region 1]                                                                                                     revised regulations and its authority to accept
                                                                                                     Environmental Protection Agency, EPA
                                                                                                                                                           delegation.
                                                                                                     New England Regional Office, 5 Post                      The EPA has reviewed the pertinent
                                             Notification of Partial Delegation of
                                                                                                     Office Square (OEP05–2), Boston, MA                   regulations of the State of Vermont, and has
                                             Authority; Vermont; New Source
                                                                                                     02109–3912, telephone number (617)                    determined they provide an adequate and
                                             Performance Standards for New
                                                                                                     918–1624, fax number (617) 918–0624,                  effective procedure for implementation of the
                                             Residential Wood Heaters, New
                                                                                                     email wortman.eric@epa.gov.                           requested NSPS provisions. Accordingly, the
                                             Residential Hydronic Heaters, and                                                                             EPA hereby approves your request for partial
                                             Forced-Air Furnaces                                     SUPPLEMENTARY INFORMATION: In a letter
                                                                                                     dated May 19, 2017, the Vermont                       delegation of authority to implement and
                                             AGENCY:  Environmental Protection                                                                             enforce the identified provisions of the NSPS
                                                                                                     Agency of Natural Resources (VT ANR)                  at 40 CFR 60.539a and 60.5482.
                                             Agency (EPA).                                           notified the EPA that VT ANR had                         Please note that this partial delegation of
                                             ACTION: Notification of partial delegation              adopted an amended § 5–204 of the                     authority is subject to the terms and
                                             of authority.                                           Vermont Air Pollution Control                         conditions in the March 6, 1996
                                                                                                     Regulation for Wood Stoves and Central                Memorandum of Understanding between the
                                             SUMMARY:   On September 19, 2017, the                   Heaters and requested partial delegation              VT ANR and the EPA for delegation of
                                             Environmental Protection Agency (EPA)                   to implement and enforce certain                      Section 111 standards. In addition, the EPA
                                             sent the State of Vermont a letter                      provisions of the NSPS. On September                  is not delegating any authorities under 40
                                             approving Vermont’s request for partial                 19, 2017, the EPA sent VT ANR a letter                CFR 60.539a and 60.5482 that specifically
                                             delegation of the New Source                                                                                  indicate they cannot be delegated.
                                                                                                     approving the request for partial                        Since this delegation is effectively
                                             Performance Standards for New                           delegation to implement and enforce the
                                             Residential Wood Heaters, New                                                                                 immediately, there is no need for VT ANR to
                                                                                                     NSPS as specified by VT ANR in its                    notify the EPA of its acceptance. Unless we
                                             Residential Hydronic Heaters, and                       notification to the EPA. A copy of the                receive written notice of objections from VT
                                             Forced-Air Furnaces (NSPS). To inform                   EPA’s September 19, 2017 letter to VT                 ANR within ten (10) days from the date of
                                             regulated facilities and the public of                  ANR follows:                                          this letter, VT ANR will be deemed to have
                                             EPA’s approval of Vermont’s request for                                                                       accepted all of the terms as stated herein. We
                                             partial delegation of authority to                      Heidi Hales, Division Director
                                                                                                                                                           will publish a notice of delegation of
                                                                                                     Department of Environmental Conservation
                                             implement and enforce the NSPS, the                     One National Life Drive
                                                                                                                                                           authority in the Federal Register informing
                                             EPA is making available a copy of EPA’s                 Montpelier, VT 05620–3802                             the public of this action.
                                             letter to Vermont through this                                                                                   The EPA appreciates Vermont’s efforts to
                                                                                                     Dear Ms. Hales:                                       accept partial delegation and implement and
                                             document.                                                 On March 16, 2015, the EPA promulgated
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                                                                                                                                                           enforce the Wood Heater and Central Heater
                                             DATES: On September 19, 2017, EPA                       Standards of Performance for New                      NSPS delegated provisions. If you have any
                                             sent the State of Vermont a letter                      Residential Wood Heaters, New Residential             questions regarding this matter, please don’t
                                             approving Vermont’s request for partial                 Hydronic Heaters, and Forced-Air Furnaces
                                                                                                                                                           hesitate to contact Eric Wortman at (617)
                                                                                                     (NSPS) at 40 CFR part 60, subparts AAA and
                                             delegation of the NSPS.                                                                                       918–1624.
                                                                                                     QQQQ. In your letter dated May 19, 2017, the
                                             ADDRESSES: The EPA has established a                    Vermont Agency of Natural Resources (VT               Sincerely,
                                             docket for this action under Docket                     ANR) requested partial delegation to                  Deborah A. Szaro



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Document Created: 2017-10-17 01:11:17
Document Modified: 2017-10-17 01:11:17
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionRules and Regulations
ActionUpdated waivers and modifications of statutory and regulatory requirements; republication.
DatesThe waivers and modifications began on September 29, 2017. The waivers and modifications in this document expire on September 30, 2022.
ContactFor provisions related to the title IV loan programs (Federal Perkins Loan Program, Federal Family Education Loan (FFEL) Program, and Federal Direct Loan (Direct Loan) Program): Barbara Hoblitzell, U.S. Department of Education, 400 Maryland Ave. SW., Room 6W253, Washington, DC 20202. Telephone: (202) 453-7583 or by email: [email protected] or Brian Smith, U.S. Department of Education, 400 Maryland Ave. SW., Room 7E222, Washington, DC 20202. Telephone: (202) 453-7440 or by email: [email protected] For other provisions: Wendy Macias, U.S. Department of Education, 400 Maryland Ave. SW., Room 6C111, Washington, DC 20202. Telephone: (202) 203-9155 or by email: [email protected]
FR Citation82 FR 48195 
CFR Citation34 CFR 668
34 CFR 674
34 CFR 682
34 CFR 685

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