Student Loans Negotiated Rulemaking Concludes, Issues Summary Included

Abstract:

Negotiated rulemaking (negreg) on student loan issues concluded its first of three separate sessions yesterday after only two days of negotiations. The quick conclusion was due in part to a fluid negotiation process where negotiators found themselves in agreement on several agenda items. The quick conclusion also stems from the fact that the first round of negotiations consists of fact finding and information gathering so the Department can draft proposed regulations to be discussed at the next round of negreg in February.

The Department divided the agenda items into two separate packages for consideration. The first package of regulatory issues focuses solely on provisions related to the College Cost Reduction and Access Act (CCRAA). The second package focuses on the issue of the preemption of state law by a Federal law, i.e. when is it appropriate that a federal statute takes precedence over and, in effect, nullifies a state statute. A third package was introduced by Mark Pelesh from Corinthian Colleges that focused on trying to find ways to address what he sees as a credit crisis amongst lenders.

The full article was originally published in NASFAA’s Today’s News on 1/16/08.