news
release
October 27, 2008
CONTACT:
James Carroll
(202) 466-3686 ext. 102
www.equaljusticeworks.org
FINAL REGULATIONS RELEASED FOR
COLLEGE COST REDUCTION AND ACCESS ACT
COLLEGE COST REDUCTION AND ACCESS ACT
Although the final regulations are significantly similar to the previously issued proposed rules, there are some important clarifications and changes:
- The Department rejected suggestions for annual certification of eligibility, but stated that “we will continue to examine ways to assist borrowers who are interested in, or already employed in public service, to determine and document their eligibility for the loan forgiveness program.” Equal Justice Works continues to advise borrowers to collect and retain records that support the borrower’s eligibility for Public Service Loan Forgiveness.
- The Department announced its intention to develop a form for borrowers to use to apply for the public service loan forgiveness which will include “all the information the borrower and the borrower’s employer need regarding the eligibility criteria, applicable definitions, and procedures for applying for the loan forgiveness benefit.” Equal Justice Works will work with the Department to develop clear and simple administrative procedures.
- The Department revised the definition of full-time to apply the 30 hours per week annual average as the governing full-time standard when a borrower is working in more than one qualifying job.
- The Department specified that leave taken for a condition that is a qualifying reason for leave under the Family Medical Leave Act does not count in determining whether a borrower meets the full-time definition.
- The Department clarified that Income-Based Repayment eligibility will be based on the amount owed when the borrower first entered repayment, rather than the current amount owed.
- The Department agreed that intergovernmental or public regional agencies are included in the definition of government: “Federal, State, local, or Tribal government organization, agency, or entity” depending on governance and the funding source for salaries.
- The Department determined that an individual serving in the Peace Corps may meet the loan forgiveness payment requirement by declining the economic hardship deferment during service or by making a lump sum payment on the loan from the Peace Corps transition allowance.
According to Heather Jarvis, Senior Program Manager at Equal Justice Works and an educational debt expert, the comments to the Department of Education overwhelmingly supported Public Service Loan Forgiveness as an important tool for recruiting and retaining public servants.
“Reducing the financial barriers to public service is a goal of many in the law school and professional legal communities,” said Ms. Jarvis. “You see those efforts reflected in the comments to the Department of Education and in the Department’s response.”
The final regulations will now be published in the Federal Register and serve to implement the provisions of the College Cost Reduction and Access Act.
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Equal Justice Works, a nonprofit, nonpartisan 501(c)(3) organization, was founded in 1986 by law students dedicated to working for equal justice on behalf of underserved communities and causes. Today, Equal Justice Works is the national leader in creating summer and postgraduate public interest opportunities for law students and lawyers as well as in advocating for more public interest programming at law schools. For more information, visit www.equaljusticeworks.org.
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JUSTICE WORKS | 2120 L Street, NW | Suite 450 | Washington, DC 20037
tel: (202) 466-3686 | fax: (202) 429-9766 | www.equaljusticeworks.org
tel: (202) 466-3686 | fax: (202) 429-9766 | www.equaljusticeworks.org