83 FR 7460 - Request for Information on Evaluating Undue Hardship Claims in Adversary Actions Seeking Student Loan Discharge in Bankruptcy Proceedings
DEPARTMENT OF EDUCATION Federal Register Volume 83, Issue 35 (February 21, 2018)
Federal Register Volume 83, Issue 35 (February 21, 2018)
| Page Range | 7460-7462 | |
| FR Document | 2018-03537 |
[Federal Register Volume 83, Number 35 (Wednesday, February 21, 2018)] [Notices] [Pages 7460-7462] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2018-03537] ======================================================================= ----------------------------------------------------------------------- DEPARTMENT OF EDUCATION [Docket ID ED-2017-OPE-0085] Request for Information on Evaluating Undue Hardship Claims in Adversary Actions Seeking Student Loan Discharge in Bankruptcy Proceedings AGENCY: Office of Postsecondary Education, U.S. Department of Education. ACTION: Request for information. ----------------------------------------------------------------------- SUMMARY: The U.S. Department of Education (Department) seeks to ensure that the congressional mandate to except student loans from bankruptcy discharge except in cases of undue hardship is appropriately implemented while also ensuring that borrowers for whom repayment of their student loans would be an undue hardship are not inadvertently discouraged from filing an adversary proceeding in their bankruptcy case. Accordingly, the Department is requesting public comment on factors to be considered in evaluating undue hardship claims asserted by student loan borrowers in adversary proceedings filed in bankruptcy cases, the weight to be given to such factors, whether the existence of two tests for evaluation of undue hardship claims results in inequities among borrowers seeking undue hardship discharge, and how all of these, and potentially additional, considerations should weigh into whether an undue hardship claim should be conceded by the loan holder. DATES: Responses must be received by May 22, 2018. ADDRESSES: Submit your comments through the Federal eRulemaking Portal or via U.S. mail, commercial delivery, or hand delivery. We will not accept comments by fax or by email or those submitted after the comment period. To ensure that we do not receive duplicate [[Page 7461]] copies, please submit your comments only once. In addition, please include the Docket ID and the term ``Evaluating Undue Hardship Claims in Bankruptcy'' at the top of your comments.Federal eRulemaking Portal: Go to www.regulations.gov to submit your comments electronically. Information on using Regulations.gov, including instructions for accessing agency documents, submitting comments, and viewing the docket, is available on the site under the ``Help'' tab. U.S. Mail, Commercial Delivery, or Hand Delivery: If you mail or deliver your comments, address them to Jean-Didier Gaina, U.S. Department of Education, Office of Postsecondary Education, 400 Maryland Avenue SW, Washington, DC 20202-6110. Though this Request for Information (RFI) is not regulatory in nature, the Department has elected to use the Federal eRulemaking Portal for submissions to ensure the process is transparent to all interested parties. Privacy Note: The Department's policy for comments received from members of the public (including comments submitted by mail, commercial delivery, or hand delivery) is to make these submissions available for public viewing in their entirety on the Federal eRulemaking Portal at www.regulations.gov. Therefore, commenters should be careful to include in their comments only information that they wish to make publicly available on the internet. Note: This RFI is issued solely for information and planning purposes and is not a request for proposal (RFP), a notice inviting applications (NIA), or a promise to issue an RFP or NIA. This RFI does not commit the Department to provide a response to any of the comments or take any action proposed in any comment. The Department will not pay for any information or administrative costs that you may incur in responding to this RFI. The documents and information submitted in response to this RFI become the property of the U.S. Government and will not be returned. FOR FURTHER INFORMATION CONTACT: Jean-Didier Gaina, U.S. Department of Education, Office of Postsecondary Education, 400 Maryland Avenue SW, Washington, DC 20202-6110. Telephone: 202-453-7551. If you use a telecommunications device for the deaf (TDD) or a text telephone (TTY), call the Federal Relay Service (FRS), toll free, at 1- 800-877-8339. SUPPLEMENTARY INFORMATION: Background A. Statutory Authority The U.S. Bankruptcy Code, 11 U.S.C. 523(a)(8), currently provides that student loans can be discharged in bankruptcy only if excepting the debt from discharge would impose an ``undue hardship'' on the borrower and the borrower's dependents: Section 523 Exceptions to Discharge (a) A discharge under . . . this title does not discharge an individual debtor from any debt-- (8) unless excepting such debt from discharge under this paragraph would impose an undue hardship on the debtor and the debtor's dependents, for-- (A)(i) an educational benefit overpayment or loan made, insured, or guaranteed by a governmental unit, or made under any program funded in whole or in part by a governmental unit or nonprofit institution; or (ii) an obligation to repay funds received as an educational benefit, scholarship, or stipend; or (B) any other educational loan that is a qualified education loan, as defined in section 221(d)(1) of the Internal Revenue Code of 1986, incurred by a debtor who is an individual. 11 U.S.C. 523(a)(8). Congress has amended the student loan bankruptcy discharge provision several times, tightening the restrictions on discharge with each amendment. B. ``Undue Hardship'' Case Law Congress has never defined the term ``undue hardship'' in the Bankruptcy Code and has not delegated to the Department the authority to do so. Federal courts have established the legal standard for a student loan debtor to prove ``undue hardship'' as authorized by Congress. In general, the courts have used one of two tests to analyze whether undue hardship is proven: The Brunner test (named after the case in which that test was first articulated, Brunner v. New York State Higher Educ. Serv. Corp., 831 F.2d 395 (2d Cir. 1987)) or the Totality of the Circumstances test (Long v. Educ. Credit Mgmt. Corp., 322 F.3d 549 (8th Cir. 2003). Under the Brunner test, the debtor must show that: (1) He or she cannot maintain, based on current income and expenses, a minimal standard of living for himself or herself and any dependents if forced to repay the loans; (2) additional circumstances exist indicating that this state of affairs is likely to persist for a significant portion of the repayment period of the student loans; and (3) he or she has made good faith efforts to repay the loans. Under the Totality of the Circumstances test, the court examines: (1) The debtor's past, present, and likely future financial resources; (2) his or her reasonably necessary living expenses; and (3) any other relevant facts and circumstances. Regardless of which test is used, the burden of proof is on the debtor to meet the standard and prove undue hardship. C. Regulatory Requirements: Direct 34 CFR 685.212(c), FFELP 34 CFR 682.402(i)(1) & Perkins 34 CFR 674.49(c) Department regulations currently require holders to evaluate each undue hardship claim to determine whether requiring repayment would constitute an undue hardship. If a holder determines that requiring repayment would impose an undue hardship, the holder must concede an undue hardship claim by the borrower in an adversary proceeding. The Department's current guidance to guarantors and educational institutions in defending bankruptcy proceedings is summarized in a July 7, 2015, Dear Colleague Letter (GEN-15-13 https://ifap.ed.gov/dpcletters/GEN1513.html) and provides for a two-step analysis when evaluating whether or not to object to a borrower's claim of undue hardship. The Department follows the same two-step analysis when defending bankruptcy proceedings for Direct loans. After receiving input from this notice, we will consider whether that analysis is still appropriate. Context for Responses and Information Requested: The undue hardship standard established under either test requires a variety of factors to be evaluated when determining whether repaying a debt will cause a debtor and his or her dependents an undue hardship, such as, but not limited to, the debtor's: Medical, work, or family history; history of mental illness; level of educational attainment; future employment prospects; payment history, including a borrower's willingness to avail himself or herself of all available repayment plans, including income- driven repayment plans; and necessary expenses in excess of ordinary unique to the debtor. The Assistant Secretary for Postsecondary Education invites the public, including individuals, advocacy groups, and professional organizations, as well as other State or Federal agencies or components, to provide comment on, and offer information regarding: (1) Factors to be considered in evaluating undue hardship claims; (2) weight to be given to any such factors; (3) whether the use of two tests results in inequities among borrowers; (4) circumstances under which loan holders should concede an undue hardship claim by the borrower; and (5) whether and how the 2015 Dear Colleague Letter should be amended. The Department will review the data collected to determine whether there is any need to modify how undue hardship claims by student loan borrowers in bankruptcy are evaluated. [[Page 7462]] You may provide comments in any convenient format (i.e., bullet points, charts, graphs, paragraphs, etc.) and may also provide relevant information that is not responsive to a particular question but may nevertheless be helpful. Accessible Format: Individuals with disabilities can obtain this document in an accessible format (e.g., braille, large print, audiotape, or compact disc) upon request to the person listed under FOR FURTHER INFORMATION CONTACT. Electronic Access to This Document: The official version of this document is the document published in the Federal Register. 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 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. Program Authority: 20 U.S.C. 1082(a). Dated: February 15, 2018. Frank T. Brogan, Principal Deputy Assistant Secretary and Delegated the duties of the Assistant Secretary, Office of Planning, Evaluation and Policy Development, Delegated the duties of the Assistant Secretary, Office of Postsecondary Education. [FR Doc. 2018-03537 Filed 2-20-18; 8:45 am] BILLING CODE 4000-01-P
![7460 Federal Register / Vol. 83, No. 35 / Wednesday, February 21, 2018 / Notices
information. This will be followed with desiring to make an oral presentation. CHARACTERIZATION TECHNIQUE//
a briefing on Marketing Strategies. Then Oral presentations by members of the and Patent No. 9,877,208 (Navy Case
the Committee will have two panel public will be permitted only on No. 200240): SYSTEM AND METHODS
discussions on the following topics: Wednesday, March 21, 2018 from 11:00 FOR UNOBTRUSIVELY AND
Healthy Unit Climate, and Women’s a.m. to 11:30 a.m. in front of the full RELOCATEABLY EXTENDING
Mental Health. The second day of the Committee. The number of oral COMMUNICATION COVERAGE AND
meeting will open with a panel presentations to be made will depend SUPPORTING UNMANNED AERIAL
discussion on Personal Protective on the number of requests received from VEHICLE (UAV) ACTIVITIES.
Equipment/Gear for Women. This will members of the public. Authority: 35 U.S.C. 207, 37 CFR part 404.
be followed by an update briefing on Dated: February 15, 2018.
Marine Corps Recruit Training. Day two Dated: February 13, 2018.
Aaron Siegel,
will end with a public comment period. E.K. Baldini,
Alternate OSD Federal Register Liaison
Agenda: Tuesday, March 20, 2018, Officer, Department of Defense.
Lieutenant Commander, Judge Advocate
from 8:30 a.m. to 12:00 p.m.—Welcome, General’s Corps, U.S. Navy, Federal Register
[FR Doc. 2018–03485 Filed 2–20–18; 8:45 am] Liaison Officer.
Introductions, and Announcements;
BILLING CODE 5001–06–P
Request for Information Status Update; [FR Doc. 2018–03442 Filed 2–20–18; 8:45 am]
Briefing: Marketing Strategies; Panel BILLING CODE 3810–FF–P
Discussion: Healthy Unit Climate; Panel
DEPARTMENT OF DEFENSE
Discussion: Women’s Mental Health;
Public Dismissed. Wednesday, March Department of the Navy DEPARTMENT OF EDUCATION
21, 2018, from 8:30 a.m. to 11:30 a.m.—
Welcome and Announcements; Panel Notice of Availability of Government- [Docket ID ED–2017–OPE–0085]
Discussion: Personal Protective Owned Inventions; Available for
Equipment/Gear for Women; Briefing: Request for Information on Evaluating
Licensing
Marine Corps Recruit Training Update; Undue Hardship Claims in Adversary
Public Comment Period; Public AGENCY: Department of the Navy, DoD. Actions Seeking Student Loan
Dismissed. ACTION: Notice. Discharge in Bankruptcy Proceedings
Meeting Accessibility: Pursuant to 5 AGENCY: Office of Postsecondary
SUMMARY: The Department of the Navy
U.S.C. 552b, as amended, and 41 CFR Education, U.S. Department of
(DoN) announces the availability of the
102–3.140 through 102–3.165, this Education.
inventions listed below, assigned to the
meeting is open to the public, subject to
United States Government, as ACTION: Request for information.
the availability of space.
represented by the Secretary of the
Written Statements: Pursuant to 41 SUMMARY: The U.S. Department of
Navy, for domestic and foreign licensing
CFR 102–3.140, and section 10(a)(3) of Education (Department) seeks to ensure
by the Department of the Navy.
the Federal Advisory Committee Act of that the congressional mandate to
1972, interested persons may submit a ADDRESSES: Requests for copies of the
patents cited should be directed to except student loans from bankruptcy
written statement for consideration by discharge except in cases of undue
the DACOWITS. Individuals submitting Naval Surface Warfare Center, Crane
Div, Code OOL, Bldg 2, 300 Highway hardship is appropriately implemented
a written statement must submit their while also ensuring that borrowers for
statement to the point of contact listed 361, Crane, IN 47522–5001.
FOR FURTHER INFORMATION CONTACT: Mr.
whom repayment of their student loans
at the address in FOR FURTHER would be an undue hardship are not
INFORMATION CONTACT no later than 5:00 Christopher Monsey, Naval Surface
Warfare Center, Crane Div, Code OOL, inadvertently discouraged from filing an
p.m., Monday, March 12, 2018. If a adversary proceeding in their
written statement is not received by Bldg 2, 300 Highway 361, Crane, IN
47522–5001, Email bankruptcy case. Accordingly, the
Monday, March 12, 2018, prior to the Department is requesting public
meeting, which is the subject of this Christopher.Monsey@navy.mil.
comment on factors to be considered in
notice, then it may not be provided to SUPPLEMENTARY INFORMATION: The
evaluating undue hardship claims
or considered by the DACOWITS until following patents are available for
licensing: Patent No. 8,857,157 (Navy asserted by student loan borrowers in
its next open meeting. The DFO will
Case No. 200273): STAND-OFF adversary proceedings filed in
review all timely submissions with the
CHARGE SYSTEM INCLUDING AN bankruptcy cases, the weight to be given
DACOWITS Chair and ensure they are
ATTACHMENT BRACKET AND to such factors, whether the existence of
provided to the members of the
RELATED METHODS//Patent No. two tests for evaluation of undue
Committee. If members of the public are
9,860,694 (Navy Case No. 200352): hardship claims results in inequities
interested in making an oral statement,
COMPUTING PLATFORM METHOD among borrowers seeking undue
a written statement should be
submitted. After reviewing the written AND APPARATUS FOR hardship discharge, and how all of
comments, the Chair and the DFO will TRANSMITTING DATA these, and potentially additional,
determine who of the requesting COMMUNICATION VIA RADIO considerations should weigh into
persons will be able to make an oral ACCESS POINT//Patent No. 9,874,625 whether an undue hardship claim
presentation of their issue during an (Navy Case No. 102054): should be conceded by the loan holder.
open portion of this meeting or at a ELECTROMAGNETIC RADIATION DATES: Responses must be received by
future meeting. Pursuant to 41 CFR 102– SOURCE LOCATING SYSTEM//Patent May 22, 2018.
daltland on DSKBBV9HB2PROD with NOTICES
3.140(d), determination of who will be No. 9,874,858 (Navy Case No. 103103): ADDRESSES: Submit your comments
making an oral presentation is at the AUTOMATION CONTROL SYSTEM through the Federal eRulemaking Portal
sole discretion of the Committee Chair AND A METHOD IN AN or via U.S. mail, commercial delivery, or
and the DFO, and will depend on time AUTOMATION CONTROL SYSTEM// hand delivery. We will not accept
available and if the topics are relevant Patent No. 9,876,969 (Navy Case No. comments by fax or by email or those
to the Committee’s activities. Five 200347): ELECTROMAGNETIC (EM) submitted after the comment period. To
minutes will be allotted to persons POWER DENSITY AND FIELD ensure that we do not receive duplicate
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![7462 Federal Register / Vol. 83, No. 35 / Wednesday, February 21, 2018 / Notices
You may provide comments in any DATES: Interested persons are invited to OMB Control Number: 1810–0724.
convenient format (i.e., bullet points, submit comments on or before March Type of Review: A revision of an
charts, graphs, paragraphs, etc.) and 23, 2018. existing information collection.
may also provide relevant information ADDRESSES: To access and review all the Respondents/Affected Public: State,
that is not responsive to a particular documents related to the information Local, and Tribal Governments.
question but may nevertheless be collection listed in this notice, please Total Estimated Number of Annual
helpful. use http://www.regulations.gov by Responses: 14,653.
Accessible Format: Individuals with searching the Docket ID number ED– Total Estimated Number of Annual
disabilities can obtain this document in 2017–ICCD–0133. Comments submitted Burden Hours: 16,447.
an accessible format (e.g., braille, large in response to this notice should be Abstract: The Consolidated State
print, audiotape, or compact disc) upon submitted electronically through the Performance Report (CSPR) is the
request to the person listed under FOR Federal eRulemaking Portal at http:// required annual reporting tool for each
FURTHER INFORMATION CONTACT. www.regulations.gov by selecting the State, the Bureau of Indian Education,
Electronic Access to This Document: Docket ID number or via postal mail, District of Columbia, and Puerto Rico as
The official version of this document is commercial delivery, or hand delivery. authorized under Section 8303 of the
the document published in the Federal Please note that comments submitted by Elementary and Secondary Education
Register. Free internet access to the fax or email and those submitted after Act (ESEA), as amended by the Every
official edition of the Federal Register the comment period will not be Student Succeeds Act (ESSA). The
and the Code of Federal Regulations is accepted. Written requests for CSPR collects data on programs
available via the Federal Digital System information or comments submitted by authorized by:
at: www.gpo.gov/fdsys. At this site you postal mail or delivery should be • Title I, Part A;
can view this document, as well as all addressed to the Director of the • Title I, Part C;
other documents of this Department Information Collection Clearance • Title I, Part D;
published in the Federal Register, in Division, U.S. Department of Education, • Title II, Part A;
text or Portable Document Format 400 Maryland Avenue SW, LBJ, Room • Title III, Part A;
(PDF). To use PDF you must have 216–42, Washington, DC 20202–4537. • Title V, Part A;
Adobe Acrobat Reader, which is FOR FURTHER INFORMATION CONTACT: For • Title V, Part B, Subparts 1 and 2;
available free at the site. specific questions related to collection and
You may also access documents of the activities, please contact Sarah • The McKinney-Vento Act.
Department published in the Federal Newman, 202–453–6956. The information in this collection
Register by using the article search SUPPLEMENTARY INFORMATION: The relate to the performance and
feature at: www.federalregister.gov. Department of Education (ED), in monitoring activities of the
Specifically, through the advanced accordance with the Paperwork aforementioned programs under ESSA
search feature at this site, you can limit Reduction Act of 1995 (PRA) (44 U.S.C. and the McKinney-Vento Act. These
your search to documents published by 3506(c)(2)(A)), provides the general data are needed for reporting on GPRA
the Department. public and Federal agencies with an as well as other reporting requirements
Program Authority: 20 U.S.C. 1082(a). opportunity to comment on proposed, under ESSA. There are significant
revised, and continuing collections of changes between this collection and the
Dated: February 15, 2018. SY2016–17 collection. The SY2016–17
Frank T. Brogan,
information. This helps the Department
assess the impact of its information collection represented the reporting
Principal Deputy Assistant Secretary and requirements under the No Child Left
Delegated the duties of the Assistant
collection requirements and minimize
the public’s reporting burden. It also Behind Act while the SY2017–18 aligns
Secretary, Office of Planning, Evaluation and with the reporting requirements of the
Policy Development, Delegated the duties of helps the public understand the
the Assistant Secretary, Office of Department’s information collection Every Student Succeeds Act.
Postsecondary Education. requirements and provide the requested Dated: February 15, 2018.
[FR Doc. 2018–03537 Filed 2–20–18; 8:45 am] data in the desired format. ED is Tomakie Washington,
BILLING CODE 4000–01–P soliciting comments on the proposed Acting Director, Information Collection
information collection request (ICR) that Clearance Division, Office of the Chief Privacy
is described below. The Department of Officer, Office of Management.
DEPARTMENT OF EDUCATION Education is especially interested in [FR Doc. 2018–03521 Filed 2–20–18; 8:45 am]
public comment addressing the BILLING CODE 4000–01–P
[Docket No.: ED–2017–ICCD–0133]
following issues: (1) Is this collection
Agency Information Collection necessary to the proper functions of the
Activities; Submission to the Office of Department; (2) will this information be DEPARTMENT OF EDUCATION
Management and Budget for Review processed and used in a timely manner;
(3) is the estimate of burden accurate; [Docket No.: ED–2018–ICCD–0018]
and Approval; Comment Request;
Consolidated State Performance (4) how might the Department enhance
the quality, utility, and clarity of the Agency Information Collection
Report Part I and Part II Activities; Submission to the Office of
information to be collected; and (5) how
AGENCY: Office of Elementary and might the Department minimize the Management and Budget for Review
Secondary Education (OESE), burden of this collection on the and Approval; Comment Request;
daltland on DSKBBV9HB2PROD with NOTICES
Department of Education (ED). respondents, including through the use 2008/18 Baccalaureate and Beyond
of information technology. Please note (B&B: 08/18) Full-Scale
ACTION: Notice.
that written comments received in AGENCY: National Center for Education
SUMMARY: In accordance with the response to this notice will be Statistics (NCES), Department of
Paperwork Reduction Act of 1995, ED is considered public records. Education (ED).
proposing a revision of an existing Title of Collection: Consolidated State
ACTION: Notice.
information collection. Performance Report Part I and Part II.
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Document Created: 2018-02-21 01:48:29
Document Modified: 2018-02-21 01:48:29
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
| Publisher | Office of the Federal Register, National Archives and Records Administration | |
| Section | Notices | |
| Action | Request for information. | |
| Dates | Responses must be received by May 22, 2018. | |
| Contact | Jean-Didier Gaina, U.S. Department of Education, Office of Postsecondary Education, 400 Maryland Avenue SW, Washington, DC 20202-6110. Telephone: 202-453-7551. | |
| FR Citation | 83 FR 7460 |
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