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69312 Federal Register / Vol. 68, No.
239 / Friday, December 12, 2003 / Rules and Regulations
Current section and paragraph Redesignated section and paragraph
250.1014 ................................................................................................... 250.1019.
■ 4. The headings for newly redesignated § 250.1013 Grounds for forfeiture of § 250.1019 Relinquishment of pipeline
§§ 250.1010 through 250.1014 are pipeline right-of-way grants. right-of-way grants.
revised, and headings for newly * * * * * * * * * *
redesignated §§ 250.1015 through ■ 5. Redesignated § 250.1012 is revised
§ 250.1014 When pipeline right-of-way
250.1019 are added to read as follows: grants expire. to read as follows:
§ 250.1009 Requirements to obtain * * * * * § 250.1012 Required payments for pipeline
pipeline right-of-way grants. right-of-way holders.
§ 250.1015 Applications for pipeline right-
* * * * * of-way grants.
(a) You must pay MMS an annual
rental of $15 for each statute mile, or
§ 250.1010 General requirements for * * * * * part of a statute mile, of the OCS that
pipeline right-of-way holders. your pipeline right-of-way crosses.
§ 250.1016 Granting pipeline rights-of-way.
* * * * * (b) This paragraph applies to you if
* * * * *
you obtain a pipeline right-of-way that
§ 250.1011 Bond requirements for pipeline includes a site for an accessory to the
§ 250.1017 Requirements for construction
right-of-way holders. under pipeline right-of-way grants. pipeline, including but not limited to a
* * * * * * * * * * platform. This paragraph also applies if
you apply to modify a right-of-way to
§ 250.1012 Required payments for pipeline § 250.1018 Assignment of pipeline right-of- change the site footprint. In either case,
right-of-way holders. way grants. you must pay the amounts shown in the
* * * * * * * * * * following table.
If... Then...
(1) Your accessory site is located in water depths of less than 200 me- You must pay a rental of $5 per acre per year with a minimum of $450
ters; per year. The area subject to annual rental includes the areal extent
of anchor chains, pipeline risers, and other facilities and devices as-
sociated with the accessory.
(2) Your accessory site is located in water depths of 200 meters or You must pay a rental of $7.50 per acre per year with a minimum of
greater; $675 per year. The area subject to annual rental includes the areal
extent of anchor chains, pipeline risers, and other facilities and de-
vices associated with the accessory.
(c) If you hold a pipeline right-of-way DEPARTMENT OF EDUCATION • Are serving on active duty during a
that includes a site for an accessory to war or other military operation or
your pipeline and you are not covered 34 CFR Parts 668, 674, 682, and 685 national emergency;
by paragraph (b) of this section, then • Are performing qualifying National
Federal Student Aid Programs Guard duty during a war or other
you must pay MMS an annual rental of
(Student Assistance General military operation or national
$75 for use of the affected area.
Provisions, Federal Perkins Loan emergency;
(d) You may make the rental Program, Federal Direct Loan Program, • Reside or are employed in an area
payments required by paragraphs (a), Federal Family Education Loan that is declared a disaster area by any
(b)(1), (b)(2), and (c) of this section on Program and the Federal Pell Grant Federal, State, or local official in
an annual basis, for a 5-year period, or Program) connection with a national emergency;
for multiples of 5 years. You must make or
the first payment at the time you submit AGENCY: Department of Education. • Suffered direct economic hardship
the pipeline right-of-way application. ACTION: Notice of waivers and as a direct result of a war or other
You must make all subsequent modifications of statutory and military operation or national
payments before the respective time regulatory provisions pursuant to the emergency, as determined by the
periods begin. Higher Education Relief Opportunities Secretary.
(e) Late payments. An interest charge for Students Act of 2003, Pub. L. 108– The Secretary is issuing these waivers
shall be assessed on unpaid and 76. and modifications under the authority
underpaid amounts from the date the of section 2(a) of the Higher Education
SUMMARY: The Secretary of Education Relief Opportunities for Students
amounts are due, in accordance with the
announces waivers and modifications of (HEROES) Act of 2003, Pub. L. 108–76.
provisions found in 30 CFR 218.54. If
statutory and regulatory provisions that Section 2(b) of the HEROES Act requires
you fail to make a payment that is late
are appropriate to assist individuals the Secretary to publish, in a notice in
after written notice from MMS, MMS (referred to in this notice as ‘‘affected the Federal Register, the waivers or
may initiate cancellation of the right-of- individuals’’) who are applicants and modifications of statutory or regulatory
use grant and easement under 30 CFR recipients of student financial assistance provisions applicable to the student
250.1009(d). under title IV of the Higher Education financial assistance programs under title
[FR Doc. 03–30768 Filed 12–11–03; 8:45 am] Act of 1965, as amended (HEA), and IV of the HEA that the Secretary
BILLING CODE 4310–MR–P who— believes are appropriate to ensure that:
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Federal Register / Vol. 68, No. 239 / Friday, December 12, 2003 / Rules and Regulations 69313
• Individuals who are recipients of (B) any other member of an Armed 7048 or GeorgeOPE.Harris@ed.gov and
student financial assistance under title Force on active duty in connection with (202) 502–7521.
IV are not placed in a worse position any war, operation, or emergency or For other provisions: Ms. Wendy
financially in relation to that student subsequent actions or conditions who Macias, U.S. Department of Education,
financial assistance because they are has been assigned to a duty station at a 1990 K Street, NW. (8th Floor),
affected individuals; location other than the location at Washington, DC 20006. Internet and
• Affected individuals who are which the individual is normally Telephone: Wendy.Macias@ed.gov and
recipients of student financial assistance assigned. (202) 502–7526.
are not unduly subject to administrative Qualifying National Guard duty—The If you use a telecommunications
burden or inadvertent, technical term ‘‘qualifying National Guard duty device for the deaf (TDD), you may call
violations or defaults; during a war or other military operation the Federal Information Relay Service
• Affected individuals are not or national emergency’’ means service (FIRS) at 1–800–877–8339.
penalized when a determination of need as a member of the National Guard on Individuals with disabilities may
for student financial assistance is full-time National Guard duty (as obtain this document in an alternative
calculated; defined in 10 U.S.C. 101(d)(5)) under a format (e.g., Braille, large print,
• Affected individuals are not call to active service authorized by the audiotape, or computer diskette) on
required to return or repay an President or the Secretary of Defense for request to the program contact persons
overpayment of grant funds based on a period of more than 30 consecutive listed under FOR FURTHER INFORMATION
the HEA’s Return of Title IV Funds days under 32 U.S.C. 502(f), in CONTACT.
provision; and connection with a war, another military
• Entities that participate in the SUPPLEMENTARY INFORMATION:
operation, or a national emergency Category 1: The Secretary is waiving
student financial assistance programs
declared by the President and supported or modifying the following provisions of
under title IV of the HEA and that are
by Federal funds. title IV of the HEA and the Department’s
located in areas that are declared
disaster areas by any Federal, State, or Section 2(c) of the HEROES Act regulations for ALL affected individuals
local official in connection with a requires the Secretary to provide an specified in the SUMMARY section of this
national emergency, or whose impact report to the Committee on notice:
operations are significantly affected by Education and the Workforce of the U.S.
House of Representatives and the Need Analysis
such a disaster, receive temporary relief
from administrative requirements. Committee on Health, Education, Labor, Section 480 of the HEA provides that,
Section 2(b)(1) of the HEROES Act and Pensions of the U.S. Senate not later in the calculation of an applicant’s
further provides that section 437 of the than 15 months after first exercising the expected family contribution (EFC), the
General Education Provisions Act (20 authority to issue a waiver or term ‘‘total income,’’ which is used in
U.S.C. 1232) and Section 553 of the modification under section 2(a) of the the determination of ‘‘annual adjusted
Administrative Procedure Act (5 U.S.C. HEROES Act. The report will describe family income’’ and ‘‘available income,’’
553) do not apply to the contents of this the impact of any waivers or is equal to adjusted gross income plus
notice. modifications on affected individuals untaxed income and benefits for the
Section 5 of the HEROES Act defines and the programs under title IV of the preceding tax year minus excludable
the following terms used in this notice: HEA, and the basis for that income. The HEROES Act allows an
Active duty—The term ‘‘active duty’’ determination, and will include the institution to substitute adjusted gross
has the meaning given that term in 10 Secretary’s recommendations for income plus untaxed income and
U.S.C. section 101(d)(1), but does not changes to the statutory or regulatory benefits received in the first calendar
include active duty for training or provisions that were the subject of the year of the award year for which such
attendance at a service school (e.g., the waivers or modifications. Therefore, a determination is made for any affected
U.S. Military Academy or U.S. Naval guaranty agency, lender, or institution individual, and for his or her spouse
Academy). must document its application of a and dependents, if applicable, in order
Military operation—The term waiver or modification made in to reflect more accurately the financial
‘‘military operation’’ means a accordance with this notice in such a condition of an affected individual and
contingency operation as that term is manner that the institution can, upon his or her family. The Secretary has
defined in 10 U.S.C. section 101(a)(13). request, report to the Secretary on the determined that an institution has the
National emergency—The term effect of the waivers and modifications. option of using the applicant’s original
‘‘national emergency’’ means a national EFFECTIVE DATE: December 12, 2003. The EFC or the EFC based on the data from
emergency declared by the President of provisions of Pub. L. 108–76, and the the first calendar year of the award year.
the United States. waivers and modifications in this If an institution chooses to use the
Serving on active duty—The term document, expire on September 30, alternate EFC, it should use the
‘‘serving on active duty during a war or 2005. administrative Professional Judgment
other military operation or national procedures established by the Secretary
emergency’’ includes service by an FOR FURTHER INFORMATION CONTACT: For as discussed in the following section on
individual who is— provisions related to the title IV loan ‘‘Professional Judgement.’’
(A) a Reserve member of an Armed programs (Federal Perkins Loan
Force ordered to active duty under 10 Program, Federal Family Education Professional Judgment
U.S.C. 12301(a), 12301(g), 12302, 12304, Loan (FFEL) Program, and Federal Section 479A of the HEA specifically
or 12306, or any retired member of an Direct Loan (Direct Loan) Program): Ms. gives the financial aid administrator
Armed Force ordered to active duty Gail McLarnon or Mr. George Harris, (FAA) the authority to use professional
under 10 U.S.C. 688, for service in Office of Postsecondary Education, U.S. judgment to make adjustments on a
connection with a war or other military Department of Education, 1990 K Street, case-by-case basis to the cost of
operation or national emergency, NW., (8th Floor), Washington, DC attendance or to the values of the items
regardless of the location at which that 20006. Internet and Telephone: used in calculating the EFC to reflect a
active duty service is performed; and Gail.McLarnon@ed.gov and (202) 219– student’s special circumstances. The
69314 Federal Register / Vol. 68, No. 239 / Friday, December 12, 2003 / Rules and Regulations
Secretary is modifying this provision by NSLDS, or refer the overpayment to the Verification of AGI and U.S. Income
removing the requirement that Department. Note that this is a change Tax Paid
adjustments be made on a case-by-case from previous guidance that instructed 34 CFR 668.57(a)(3) provides that
basis for affected individuals. The use of institutions to refer these overpayments when an individual whose income was
professional judgment in Federal need to the Department. However, the used in the calculation of the EFC of an
analysis is discussed in the Student institution must document in the applicant for title IV assistance has not
Financial Aid Handbook. student’s file the amount of any filed an income tax return because he or
The Secretary encourages FAAs to use overpayment as part of the she has been granted a filing extension
professional judgment in order to reflect documentation of the application of this by the IRS, an institution must accept,
more accurately the financial need of waiver. The student is not required to in lieu of an income tax return for
affected individuals. To that end, the return or repay an overpayment of grant verification of AGI or income tax paid:
Secretary encourages institutions to funds based on the Return of Title IV • A copy of IRS Form 4868,
determine need for any affected Funds provision; therefore, an ‘‘Application for Automatic Extension
individual by determining the most institution must not apply any title IV of Time to File U.S. Individual Income
beneficial of: credit balance to the grant overpayment Tax Return,’’ that the individual filed
• The individual’s need as before paying any amount of the title IV with the IRS for the base year, or a copy
determined using the adjusted gross credit balance to the student or parent, of the IRS’s approval of an extension
income plus untaxed income and in the case of a PLUS loan. beyond the automatic four-month
benefits received in the first calendar
Return of Title IV Funds—Amount of extension if the individual requested an
year of the award year;
• The individual’s need as Unearned Funds Owed by the additional extension of the filing time;
determined using professional Institution and
• A copy of each W–2 received for the
judgment; or If the Return of Title IV Funds
• The individual’s need as base year, or for a self-employed
calculation results in the institution individual, a statement signed by the
determined making no modifications. being required to return funds to one or
(For example, in some cases, an individual certifying the amount of AGI
more of the title IV programs, the for the base year.
individual’s income will increase as a institution must do so as it must for any
result of serving on active duty or The Secretary is modifying this
student who withdraws. In many cases provision so that the submission of a
performing qualifying National Guard a return of funds by the institution will
duty.) copy of IRS Form 4868 or a copy of the
reduce the student’s loan debt. IRS extension approval is not required
The FAA must clearly document the
Section 484B(b)(1) of the HEA and 34 if an individual whose income was used
reasons for any adjustment. As usual,
CFR 668.22(g) provide that an in the calculation of the EFC:
any professional judgment decisions
made by an FAA that affect a student’s
institution must return the lesser of (1) • Has not filed and was not required
the total amount of unearned aid to be to file an income tax return by the filing
eligibility for a Federal Pell Grant must
returned; or (2) an amount equal to the deadline because he or she was called
be reported to the Central Processing
student’s total institutional charges for up for active duty or for qualifying
System (CPS).
the payment period or period of National Guard duty during a war or
Return of Title IV Funds—Grant enrollment multiplied by the percentage other military operation or national
Overpayments Owed by the Student of unearned aid. The total (initial) emergency; and
Section 484B(b)(2) of the HEA and 34 amount of institutional charges is used • Was not required to file for an
CFR 668.22(h)(3)(ii) require a student to even if the institution fully refunds or extension.
return or repay, as appropriate, 50 otherwise adjusts the amount of For these individuals, an institution
percent of any unearned grant funds for institutional charges after the student must accept, in lieu of an income tax
which the student is responsible under withdraws. For a student who return for verification of AGI or income
the Return of Title IV Funds calculation. withdraws because of his or her status tax paid:
For a student who withdraws from an as an affected individual, the Secretary • A statement from the individual
institution because of his or her status is modifying this provision to exclude certifying that he or she has not filed
as an affected individual, the Secretary from the amount of a student’s total and was not required to file an income
is waiving these statutory and regulatory institutional charges any institutional tax return or a request for a filing
requirements so that a student is not charges that the institution is required extension because he or she was called
required to return or repay an to cover, and has covered, with non-title up for active duty or for qualifying
overpayment of grant funds based on IV sources of aid. For example, assume National Guard duty during a war or
the Return of Title IV Funds provisions. a student receives a state grant of $800 other military operation or national
For these students, the Secretary also that must be used only for tuition emergency; and
waives 34 CFR 668.22(h)(4), which: charges. The institution applies the state • A copy of each W–2 received for the
• Requires an institution to notify a grant toward the total institutional base year, or for a self-employed
student of a grant overpayment and the charges of $1,000. The student individual, a statement signed by the
actions the student must take to resolve withdraws. The institution uses $200, individual certifying the amount of AGI
the overpayment; the difference between the full for the base year.
• Denies eligibility to a student who institutional charges and the amount of The student must submit the tax
owes an overpayment and does not take the state grant the institution was return to the institution once it is filed
an action to resolve the overpayment; required to apply to the institutional with the IRS for the institution to re-
and charges, as the student’s total verify the AGI and taxes paid.
• Requires an institution to refer an institutional charges for the payment Category 2: The Secretary is waiving
overpayment to the Secretary under period or period of enrollment when or modifying the following provisions of
certain conditions. determining the amount of unearned title IV of the HEA and the Department’s
Therefore, an institution is not title IV funds that the institution must regulations for affected individuals who
required to contact the student, notify return. are serving on active duty, performing
qualifying National Guard duty during a documentation of its decision to grant have been credited to the account at the
war or other military operation or the leave of absence must include, in institution. If an institution receives a
national emergency, or who reside or addition to the reason for the leave of loan cancellation request from a
are employed in a disaster area as absence, the reason for waiving the borrower after the 60-day period, the
described in the SUMMARY section of requirement that the waiver be institution may, but is not required to,
this notice: requested in writing. comply with the request.
Return of Title IV Funds— Treatment of Title IV Credit Balances Cash Management—Student and Parent
Postwithdrawal Disbursements When a Student Withdraws Authorizations
Under 34 CFR 668.22(a)(4)(ii)(A)(3) Under 34 CFR 668.164(e), an 34 CFR 668.165(b)(1) provides that an
and (B), a student (or parent for a PLUS institution must pay any credit balance institution must obtain a written
loan) must be provided a to the student, or parent in the case of authorization from a student or parent,
postwithdrawal disbursement if the a PLUS loan, within 14 days after the as applicable, to:
student (or parent) responds to an balance occurred. However, if a student • Disburse title IV funds to a bank
institution’s notification of the (or parent) has provided permission, an account designated by the student or
postwithdrawal disbursement within 14 institution may use a title IV credit parent;
days of the date that the institution sent balance to reduce the borrower’s loan • Use title IV funds to pay for current
the notice. If a student or parent submits debt. charges other than tuition, fees, room,
a late response, an institution may, but Therefore, for students who withdraw and board, if the student contracts with
is not required to, make the because they are affected individuals, the school for room and board; and
postwithdrawal disbursement. The the Secretary is modifying 34 CFR • Hold on behalf of the student or
Secretary is modifying this requirement 668.164(e) to consider an institution to parent any title IV funds that would
so that, for a student who withdraws have met the 14-day requirement if, otherwise be paid directly to the student
because of his or her status as an within that timeframe, the institution or parent.
affected individual in this category and attempts to contact the student to The Secretary is modifying these
is eligible for a postwithdrawal suggest that permission be given to the provisions to permit an institution to
disbursement, the 14-day time period in institution allowing it to return the accept an authorization provided by a
which the student (or parent) must credit balance to the loan program(s). student (or parent for a PLUS loan)
normally respond to the offer of the Based upon the instructions of the orally, rather than in writing, if the
post-withdrawal disbursement is student (or parent), the institution must student or parent is prevented from
extended to 45 days. If the student or promptly return the funds to the title IV providing a written authorization
parent submits a response after the 45- loan programs or pay the credit balance because of his or her status as an
day period, the institution may, but is to the student (or parent). affected individual in this category.
not required to, make the If an institution chooses to attempt to
postwithdrawal disbursement. As contact the student (or parent), it must Satisfactory Academic Progress
required under the current regulations, allow the student (or parent) 45 days to Institutions may, in cases where a
if the student or parent submits the respond. If there is no response within student failed to meet satisfactory
timely response instructing the 45 days, the institution must promptly academic progress standards as a direct
institution to make all or a portion of return the funds to the title IV programs. result of being an affected individual in
the postwithdrawal disbursement, or the The institution may also choose to pay this category, apply the exception
institution chooses to make a the credit balance to the student (or provision of ‘‘other special
postwithdrawal disbursement based on parent) without first requesting circumstances’’ contained in 34 CFR
receipt of a late response, the institution permission to return the funds to the 668.34(c)(3) of the regulations.
must disburse the funds within 120 loan program in order to reduce the
Borrowers in a Grace Period
days of the date of the institution’s borrower’s debt.
determination that the student Sections 428(b)(7)(D) and 464(c)(7) of
Cash Management—Borrower Request the HEA and 34 CFR 674.31(b)(2)(i)(C),
withdrew.
for Loan Cancellation 682.209(a)(6), and 685.207(b)(2)(ii) and
Leaves of Absence Under 34 CFR 668.165(a)(4)(ii), an (c)(2)(ii) exclude from a Federal Perkins
34 CFR 668.22(d)(4)(iii)(B) requires a institution must return loan proceeds or Loan, FFEL, or Direct Loan borrower’s
student to provide a written, signed, and cancel the loan, or both, if the (title IV borrower’s) initial grace period,
dated request, which includes the institution receives a loan cancellation any period, not to exceed three years,
reason for that request, for an approved request from a borrower within 14 days during which a borrower who is a
leave of absence prior to the leave of after the date of the institution’s notice member of an Armed Forces reserve
absence, or at a later date if the student to the borrower, or by the first day of the component is called or ordered to active
is prevented from providing a prior payment period if the institution sends duty for a period of more than 30 days.
written request by unforeseen the notice more than 14 days before the The statutory and regulatory provisions
circumstances. It may be appropriate in first day of the payment period. If an further require that any single excluded
certain limited cases for an institution to institution receives a late loan period may not exceed three years and
provide an approved leave of absence to cancellation request from a borrower, must include the time necessary for the
a student who must interrupt his or her the institution may, but is not required borrower to resume enrollment at the
enrollment because he or she is an to, comply with the request. For a next available regular enrollment
affected individual. Therefore, the borrower who is an affected individual period. Lastly, borrowers are entitled to
Secretary is waiving the requirement in this category, the Secretary is another full six- or nine-month grace
that the student provide a written modifying this provision to require an period, as applicable, upon completion
request for affected individuals who institution to allow at least 60 days, of the excluded period of service.
would have difficulty providing a rather than at least 14 days, for the The Secretary is modifying these
written request as a result of being an borrower to request the cancellation of statutory and regulatory provisions to
affected individual. The institution’s all or a portion of loan proceeds that exclude from a title IV borrower’s initial
grace period, any period, not to exceed course of study that is part of a graduate immediately after they are no longer
three years, during which a borrower is fellowship program; or engaged in affected individuals.
an affected individual in this category. graduate or post-graduate fellowship- In order to grant the borrower
Any excluded period must include the supported study outside the United forbearance beyond the initial period,
time necessary for an affected States. The borrower’s deferment period supporting documentation from the
individual in this category to resume ends when the borrower no longer borrower, a member of the borrower’s
enrollment at the next available meets one of the above conditions. The family, or another reliable source is
enrollment period. Affected individuals Secretary is waiving the statutory and required.
in this category are also entitled to regulatory eligibility requirements for 34 CFR 682.211(i)(1) requires an FFEL
another full six- or nine-month grace this deferment for title IV borrowers borrower who requests forbearance
period upon completion of the excluded who were required to interrupt a because of a military mobilization to
period of service. graduate fellowship deferment or who provide the loan holder with
were in an in-school deferment but who documentation showing that he or she
Borrowers in an ‘‘In-School’’ Period is subject to a military mobilization. The
left school because of their status as an
A title IV borrower is considered to be affected individual in this category. The Secretary is waiving this requirement to
in an ‘‘in-school’’ status and is not holder of the loan is required to allow the borrower to receive
required to make payments on a title IV maintain the loan in a graduate forbearance at the request of the
loan that has not entered repayment as fellowship deferment or in-school borrower, a member of the borrower’s
long as the borrower is enrolled at an deferment status for a period not to family, or another reliable source for a
eligible school on at least a half-time exceed three years during which the one-year period, including a three-
basis. Under sections 428(b)(7) and borrower is an affected individual. This month transition period that
464(c)(1)(A) of the HEA and 34 CFR period includes the time necessary for immediately follows that period,
674.31(b)(2), 682.209(a), and 685.207(b), the borrower to resume his or her without providing the loan holder with
(c), and (e)(2) and (3), when a title IV graduate fellowship program or resume documentation. In order to grant the
borrower ceases to be enrolled at an enrollment in the next regular borrower forbearance beyond this
eligible institution on at least a half-time enrollment period if the borrower period, documentation supporting the
basis, the borrower is obligated to begin returns to school. The Secretary will pay borrower’s military mobilization must
repayment of the loan after a six- or interest that accrues on a subsidized be submitted to the holder of the loan.
nine-month grace period, depending on Stafford Loan as a result of extending a The Secretary will apply the
the title IV loan program and the terms borrower’s eligibility for deferment forbearance waivers and modifications
of the borrower’s promissory note. The under this waiver. in this section to loans held by the
Secretary is modifying the statutory and Department of Education.
regulatory provisions that obligate an Forbearance
‘‘in-school’’ borrower who has dropped Under section 464(e) of the HEA and Collection of Defaulted Loans
below half-time status to begin 34 CFR 674.33(d)(2), there is a 3-year In accordance with 34 CFR Part 674,
repayment if the borrower is an affected cumulative limit on the length of Subpart C-Due Diligence and 682.410,
individual in this category by requiring forbearances that a Federal Perkins Loan schools and guaranty agencies must
the holder of the loan to maintain the borrower can receive. To assist Perkins attempt to recover amounts owed from
loan in an ‘‘in-school’’ status for a borrowers who are affected individuals defaulted Perkins and FFEL borrowers.
period not to exceed three years, in this category, the Secretary is waiving The Secretary is waiving the regulatory
including the time necessary for the these statutory and regulatory provisions that require schools and
borrower to resume enrollment in the requirements so that any forbearance guaranty agencies to attempt collection
next regular enrollment period, if the based on a borrower’s status as an on defaulted loans for the time period
borrower is planning to go back to affected individual is excluded from the during which the borrower is an
school. The Secretary will pay interest 3-year cumulative limit. affected individual. The school or
that accrues on a subsidized Stafford Under section 464(e) of the HEA and guaranty agency may stop collection
Loan as a result of the extension of a 34 CFR 674.33(d)(2) and (3), a school activities upon notification by the
borrower’s in-school status under this must receive a written request and borrower, a member of the borrower’s
modification. supporting documentation from a family, or another reliable source that
Federal Perkins Loan borrower before the borrower is an affected individual in
Borrowers in an In-School or Graduate granting the borrower a forbearance, the this category. Collection activities must
Fellowship Deferment terms of which must be in the form of resume after the borrower has notified
Under sections 427(a)(2)(C)(i), a written agreement. The Secretary is the school or guaranty agency that he or
428(b)(1)(M)(i), 428B(a)(2), waiving these statutory and regulatory she is no longer an affected individual
428C(b)(4)(C), 455(f)(2)(A), and provisions to require an institution to and must include the 3-month transition
464(c)(2)(A)(i)(I) of the HEA and 34 CFR grant forbearance based on the period. The loan holder must document
674.34(b)(1), 682.210(b)(1)(i) and (ii), borrower’s status as an affected in the loan file why it has suspended
682.210(s)(2), 682.210(s)(3), and individual in this category for a one- collection activities on the loan, and the
685.204(b)(1)(i), a title IV borrower is year period, including a 3-month loan holder is not required to obtain
eligible for a deferment on the loan ‘‘transition period’’ that immediately evidence of the borrower’s status while
during periods after the commencement follows that period, without supporting collection activities have been
or resumption of the repayment period documentation or a written agreement, suspended. The Secretary will apply the
on the loan when the borrower is based on the written or oral request of waivers described in this paragraph to
enrolled and in attendance as a regular the borrower, a member of the loans held by the Department of
student on at least a half-time basis (or borrower’s family, or another reliable Education.
full-time, if required by the terms of the source. The purpose of the 3-month
borrower’s promissory note) at an ‘‘transition period’’ is to assist Loan Cancellation
eligible institution; enrolled and in borrowers so that they will not be Depending on the loan program,
attendance as a regular student in a required to reenter repayment borrowers may qualify for loan
cancellation if they are employed full- ‘‘satisfactory repayment arrangement’’ Military Deferment
time in specified occupations, such as in 34 CFR 668.35(a)(2), 674.2(b), Under section 455(f)(4) of the HEA
teaching, childcare, or law enforcement, 682.200(b), and 685.102(b), a defaulted and 34 CFR 674.35(c)(1), 674.36(c)(1),
pursuant to sections 428J(b)(1), title IV borrower may make six 674.37(c)(1), 682.210(b)(2), and
428K(d)(1), 460(b)(1)(A), and consecutive, monthly, on-time 685.204(d), certain borrowers are
465(a)(2)(A)–(I) and (a)(3) of the HEA, payments to reestablish eligibility for eligible for a deferment on their title IV
and 34 CFR 674.53(d), 674.55(a)(2), title IV student financial assistance. To loans for periods, not to exceed 3 years,
674.55(b)(5), 674.55(c)(2), 674.56(d)(1), assist title IV borrowers who are affected during which the borrower is on active
674.57(b)(1), 674.58(b), 674.60(b), individuals in this category, the
duty status in the United States Armed
682.215, and 685.217. Generally, to Secretary is waiving statutory and
Forces. This provision includes a
qualify for loan cancellation, borrowers regulatory provisions that require the
member of the National Guard or the
must perform uninterrupted, otherwise borrower to make consecutive payments
Reserves serving a period of full-time
qualifying service for a specified length in order to reestablish eligibility for title
active duty in the Armed Forces. The
of time (for example, one year) or for IV student financial assistance. Loan
Secretary is modifying the statutory and
consecutive periods of time, such as 5 holders should not treat any payment
regulatory requirements that limit
consecutive years. For borrowers who missed during the time that a borrower
military deferments to a 3-year
are affected individuals in this category, is an affected individual as an
cumulative period so that the time
the Secretary is waiving the interruption in the six consecutive,
during which affected individuals in
requirements that apply to the various monthly, on-time payments required for
loan cancellations that such periods of reestablishing title IV eligibility. When this category are serving on active duty
service be uninterrupted and/or the borrower is no longer considered to is excluded from this time limit. The
consecutive, if the reason for the be an affected individual or in the 3- Secretary will pay interest that accrues
interruption is related to the borrower’s month transition period for purposes of on subsidized Stafford Loans during an
status as an affected individual. this notice, the required sequence of extended period of deferment under this
Therefore, the period during which the qualifying payments may resume at the modification.
borrower is an affected individual in point they were discontinued as a result Under 34 CFR 674.38(a)(1) and
this category, including the 3-month of the borrower’s status. The Secretary 682.210(a)(4), a borrower must request
transition period, will not be considered will apply the waivers described in this the deferment and provide the
an interruption in the required service paragraph to loans held by the institution or lender with supporting
for the borrower to receive an otherwise Department of Education. documentation to receive a deferment.
eligible loan cancellation. The Secretary The Secretary is modifying the
Consolidation of Defaulted Loans regulations to allow a loan holder to
will apply the waivers described in this
paragraph to loans held by the Under the definition of ‘‘satisfactory grant an affected individual in this
Department of Education. repayment arrangement’’ in 34 CFR category a military deferment based on
682.200(b) and 685.102(b), a defaulted a request from a family member or
Rehabilitation of Defaulted Loans FFEL or Direct Loan borrower may another reliable source. The Secretary is
A borrower of an HEA, title IV loan establish eligibility to consolidate a also waiving documentation
must make 12 consecutive, monthly, on- defaulted loan by making three requirements to allow a loan holder to
time payments to rehabilitate a consecutive, monthly, on-time grant an affected individual in this
defaulted loan in accordance with payments on the loan. The Secretary is category a military deferment for a one-
sections 428F(a) and 464(h)(1) of the waiving the regulatory requirement that year period without documentation. In
HEA and 34 CFR 674.39(a)(2), 682.405, such payments be consecutive. FFEL order to grant a military deferment
and y685.211(f)(1). To assist title IV loan holders should not treat any beyond the initial period, supporting
borrowers who are affected individuals payment missed during the time that a documentation from the borrower, a
in this category, the Secretary is waiving borrower is an affected individual in member of the borrower’s family, or
the statutory and regulatory this category as an interruption in the another reliable source is required. The
requirements that payments made to three consecutive, monthly, on-time Secretary will apply the waivers
rehabilitate a loan be consecutive. Loan payments required for establishing described in this paragraph to loans
holders should not treat any payment eligibility to consolidate a defaulted held by the Department of Education.
missed during the time that a borrower loan. When the borrower is no longer
Institutional Charges and Refunds
is an affected individual in this considered to be an affected individual
category, or the 3-month transition in this category or in the 3-month The HEROES Act encourages
period, as an interruption in the number transition period, the required sequence institutions to provide a full refund of
of consecutive, monthly, on-time of qualifying payments may resume at tuition, fees, and other institutional
payments required for loan the point they were discontinued as a charges for the portion of a period of
rehabilitation. When the borrower is no result of the borrower’s status as an instruction that a student was unable to
longer considered to be an affected affected individual. The Secretary will complete, or for which the student did
individual in this category, the required apply the waivers described in this not receive academic credit, because he
sequence of qualifying payments may paragraph to loans held by the or she was called up for active duty or
resume at the point they were Department of Education. for qualifying National Guard duty
discontinued as a result of the Category 3: The Secretary is waiving during a war or other military operation
borrower’s status. The Secretary will or modifying the following provisions of or national emergency. Alternatively,
apply the waivers described in this title IV of the HEA and the Department’s the Secretary encourages institutions to
paragraph to loans held by the regulations for affected individuals who provide a credit in a comparable amount
Department of Education. are serving on active duty or performing against future charges.
qualifying National Guard duty during a The HEROES Act also recommends
Reinstatement of Title IV Eligibility war or other military operation or that institutions consider providing easy
Under sections 428F(b) and 464(h)(2) national emergency as described in the and flexible reenrollment options to
of the HEA and under the definition of SUMMARY section of this notice: such students who are affected
individuals in this category. parent who can provide the required ACTION: Interim final rule.
Specifically, institutions are urged to signature because of the parent’s status
minimize deferral of enrollment or as an affected individual in this SUMMARY: EPA is making an interim
reapplication requirements and to category. In these situations, a student’s final determination to stay and defer
provide the greatest flexibility possible high school counselor or the FAA may imposition of sanctions based on a
with administrative deadlines related to sign on behalf of the parent as long as proposed approval of revisions to the
those applications. the applicant provides adequate South Coast Air Quality Management
Of course, an institution may provide documentation concerning the parent’s District (SCAQMD) portion of the
such treatment to affected individuals inability to provide a signature due to California State Implementation Plan
other than those who are called up to the parent’s status as an affected (SIP) published elsewhere in today’s
active duty or for qualifying National individual in this category. Federal Register. The revisions concern
Guard duty during a war or other SCAQMD Rule 1168.
military operation or national Electronic Access to This Document DATES: This interim final determination
emergency. You may view this document, as well is effective on December 12, 2003.
However, before an institution makes as all other Department of Education However, comments will be accepted
a refund of institutional charges, it must documents published in the Federal until January 12, 2004.
perform the required Return of title IV Register, in text or Adobe Portable ADDRESSES: Send comments to Andy
Funds calculations based upon the Document Format (PDF) on the Internet Steckel, Rulemaking Office Chief (AIR–
originally assessed institutional charges. at the following site: http://www.ed.gov/ 4), U.S. Environmental Protection
After determining the amount that the news/fedregister. Agency, Region IX, 75 Hawthorne
institution must return to the title IV To use PDF you must have Adobe Street, San Francisco, CA 94105 or e-
Federal student aid programs, any Acrobat Reader, which is available free mail to steckel.andrew@epa.gov, or
reduction of institutional charges may at this site. If you have questions about submit comments at http://
take into account the funds that the using PDF, call the U.S. Government www.regulations.gov.
institution is required to return. In other Printing Office (GPO), toll free, at 1– You can inspect copies of the
words, we do not expect that an 888–293–6498; or in the Washington, submitted rule revisions, EPA’s
institution would both return funds to DC, area at (202) 512–1530. technical support document (TSD), and
the Federal programs and also provide You may also view this document in public comments at our Region IX office
a refund of those same funds to the PDF at the following site: http:// during normal business hours by
student. www.ifap.ed.gov. appointment. You may also see copies
Category 4: The Secretary is waiving Note: The official version of this document of the submitted rule revisions by
or modifying the following provisions of is the document published in the Federal appointment at the following locations:
the HEA and regulations for dependents Register. Free Internet access to the official
Rulemaking Office (AIR–4), Air
and spouses of affected individuals who edition of the Federal Register and the Code
of Federal Regulations is available on GPO Division, U.S. Environmental
are serving on active duty or performing
Access at: http://www.gpoaccess.gov/nara/ Protection Agency, Region IX, 75
qualifying National Guard duty during a
index.html. Hawthorne Street, San Francisco, CA
war or other military operation or
94105.
national emergency as described in the Catalog of Federal Domestic Assistance California Air Resources Board,
SUMMARY section of this notice: Numbers: 84.007 Federal Supplemental Stationary Source Division, Rule
Educational Opportunity Grant Program;
Verification Signature Requirements 84.032 Federal Family Education Loan
Evaluation Section, 1001 ‘‘I’’ Street,
34 CFR 668.57(b) and (c) require Program; 84.032 Federal PLUS Program; Sacramento, CA 95814.
signatures to verify the number of 84.033 Federal Work Study Program; 84.038 South Coast Air Quality Management
family members in the household and Federal Perkins Loan Program; 84.063 District, 21865 E. Copley Drive,
the number of family members enrolled Federal Pell Grant Program and 84.268 Diamond Bar, CA 91765.
in postsecondary institutions. The William D. Ford Federal Direct Loan A copy of the rule may also be
Program. available via the Internet at http://
Secretary is waiving the requirement
that a dependent student submit a Program Authority: 20 U.S.C. 1071, 1082, www.arb.ca.gov/drdb/drdbltxt.htm.
statement signed by one of the 1087a, 1087aa, Pub. L. 108–76. Please be advised that this is not an EPA
applicant’s parents when no responsible Dated: December 8, 2003. website and may not contain the same
parent can provide the required Sally L. Stroup, version of the rule that was submitted
signature because of the parent’s status to EPA.
Assistant Secretary, Office of Postsecondary
as an affected individual in this Education. FOR FURTHER INFORMATION CONTACT:
category. [FR Doc. 03–30781 Filed 12–11–03; 8:45 am] Yvonne Fong, EPA Region IX, (415)
BILLING CODE 4000–01–P
947–4117, fong.yvonnew@epa.gov.
Required Signatures on the Free
SUPPLEMENTARY INFORMATION:
Application for Federal Student Aid
Throughout this document, ‘‘we,’’ ‘‘us’’
(FAFSA), Student Aid Report (SAR),
ENVIRONMENTAL PROTECTION and ‘‘our’’ refer to EPA.
and Institutional Student Information
Record (ISIR) AGENCY I. Background
Generally, when a dependent 40 CFR Part 52 On April 26, 2002 (67 FR 20645), we
applicant for title IV aid submits an published a limited approval and
application (FAFSA) or submits [CA 296–0427; FRL–7594–2] limited disapproval of SCAQMD Rule
corrections to a previously submitted 1168. Table 1 lists the rule addressed by
Interim Final Determination To Stay
application, at least one parental our prior limited approval and
and Defer Sanctions, South Coast Air
signature is required. The Secretary is disapproval with the dates that it was
Quality Management District
waiving this requirement so that an adopted by the local air agency and
applicant need not provide a parent’s AGENCY: Environmental Protection submitted by the California Air
signature when there is no responsible Agency (EPA). Resources Board (CARB).

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69312 Federal Register / Vol. 68, No.

239 / Friday, December 12, 2003 / Rules and Regulations

Current section and paragraph Redesignated section and paragraph

250.1014 ................................................................................................... 250.1019.

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