20 U.S.C. § 1098a — Regional meetings and negotiated rule-

Page 723 TITLE 20—EDUCATION § 1098a priate, regarding early needs assessment and infor- mation for first-year high school students; and ‘‘(4) assess the adequacy of methods of monitoring student debt burden.’’ Subsec. (k). Pub. L. 105–244, § 490C(7), substituted ‘‘2004’’ for ‘‘1998’’. Subsec. (l). Pub. L. 105–244, § 490C(8), struck out head- ing and text of subsec. (l) which directed Advisory Com- mittee to conduct a study of means of simplifying all aspects of loan programs under part B of this sub- chapter. 1993—Subsec. (d)(1). Pub. L. 103–208, § 2(h)(45), struck out ‘‘sections 1070a–1 through 1070a–5 of this title and’’ after ‘‘established under’’. Subsec. (h)(1). Pub. L. 103–208, § 2(h)(46), substituted ‘‘subchapter III’’ for ‘‘subtitle III’’ before ‘‘of chapter 53 of such title’’. 1992—Subsec. (b). Pub. L. 102–325, § 496(a), inserted after first sentence ‘‘Notwithstanding Department of Education policies and regulations, the Advisory Com- mittee shall exert independent control of its budget al- locations and expenditures, personnel decisions and processes, procurements, and other administrative and management functions. The Advisory Committee’s ad- ministration and management shall be subject to the usual and customary Federal audit procedures.’’ Subsec. (d)(3). Pub. L. 102–325, § 496(b)(1), struck out ‘‘and in assessing the impact of legislative and admin- istrative policy proposals’’ after ‘‘student aid’’. Subsec. (d)(4) to (9). Pub. L. 102–325, § 496(b)(2)–(6), added par. (4), redesignated former pars. (4) to (7) as (5) to (8), respectively, and added par. (9). Subsec. (h)(4). Pub. L. 102–325, § 496(c), substituted ‘‘without regard to’’ for ‘‘in accordance with’’ and in- serted before period at end ‘‘and to set pay in accord- ance with such section’’. Subsec. (i). Pub. L. 102–325, § 496(d), substituted ‘‘$750,000’’ for ‘‘$500,000’’. Subsecs. (j) to (l). Pub. L. 102–325, § 496(e), added sub- secs. (j) to (l) and struck out former subsec. (j), which related to special institutional lender study. 1987—Subsec. (b). Pub. L. 100–50, § 15(16), inserted at end ‘‘The Secretary’s authority to terminate advisory committees of the Department pursuant to section 1233g(b) of this title ceased to be effective on June 23, 1983.’’ Subsec. (i). Pub. L. 100–50, § 15(17), substituted ‘‘In each fiscal year not less than $500,000’’ for ‘‘An amount, not to exceed $500,000 in any fiscal year’’. Subsec. (j). Pub. L. 100–50, § 15(18), added subsec. (j). Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2009 AMENDMENT Amendment by Pub. L. 111–39 effective as if enacted on the date of enactment of Pub. L. 110–315 (Aug. 14, 2008), see section 3 of Pub. L. 111–39, set out as a note under section 1001 of this title. EFFECTIVE DATE OF 1998 AMENDMENT Amendment by Pub. L. 105–244 effective Oct. 1, 1998, except as otherwise provided in Pub. L. 105–244, see sec- tion 3 of Pub. L. 105–244, set out as a note under section 1001 of this title. EFFECTIVE DATE OF 1993 AMENDMENT Amendment by Pub. L. 103–208 effective as if included in the Higher Education Amendments of 1992, Pub. L. 102–325, except as otherwise provided, see section 5(a) of Pub. L. 103–208, set out as a note under section 1051 of this title. EFFECTIVE DATE OF 1987 AMENDMENT Amendment by Pub. L. 100–50 effective as if enacted as part of the Higher Education Amendments of 1986, Pub. L. 99–498, see section 27 of Pub. L. 100–50, set out as a note under section 1001 of this title. REFERENCES IN OTHER LAWS TO GS–16, 17, OR 18 PAY RATES References in laws to the rates of pay for GS–16, 17, or 18, or to maximum rates of pay under the General Schedule, to be considered references to rates payable under specified sections of Title 5, Government Organi- zation and Employees, see section 529 [title I, § 101(c)(1)] of Pub. L. 101–509, set out in a note under section 5376 of Title 5. § 1098a. Regional meetings and negotiated rule- making (a) Meetings (1) In general The Secretary shall obtain public involve- ment in the development of proposed regula- tions for this subchapter. The Secretary shall obtain the advice of and recommendations from individuals and representatives of the groups involved in student financial assistance programs under this subchapter, such as stu- dents, legal assistance organizations that rep- resent students, institutions of higher edu- cation, State student grant agencies, guaranty agencies, lenders, secondary markets, loan servicers, guaranty agency servicers, and col- lection agencies. (2) Issues The Secretary shall provide for a com- prehensive discussion and exchange of infor- mation concerning the implementation of this subchapter through such mechanisms as re- gional meetings and electronic exchanges of information. The Secretary shall take into ac- count the information received through such mechanisms in the development of proposed regulations and shall publish a summary of such information in the Federal Register to- gether with such proposed regulations. (b) Draft regulations (1) In general After obtaining the advice and recommenda- tions described in subsection (a)(1) and before publishing proposed regulations in the Federal Register, the Secretary shall prepare draft regulations implementing this subchapter and shall submit such regulations to a negotiated rulemaking process. Participants in the nego- tiations process shall be chosen by the Sec- retary from individuals nominated by groups described in subsection (a)(1), and shall in- clude both representatives of such groups from Washington, D.C., and industry participants. The Secretary shall select individuals with demonstrated expertise or experience in the relevant subjects under negotiation, reflecting the diversity in the industry, representing both large and small participants, as well as individuals serving local areas and national markets. The negotiation process shall be con- ducted in a timely manner in order that the final regulations may be issued by the Sec- retary within the 360-day period described in section 1232(e) of this title. (2) Expansion of negotiated rulemaking All regulations pertaining to this subchapter that are promulgated after October 7, 1998, shall be subject to a negotiated rulemaking (including the selection of the issues to be ne- gotiated), unless the Secretary determines that applying such a requirement with respect to given regulations is impracticable, unneces- Page 724 TITLE 20—EDUCATION § 1098a sary, or contrary to the public interest (within the meaning of section 553(b)(3)(B) of title 5), and publishes the basis for such determination in the Federal Register at the same time as the proposed regulations in question are first published. All published proposed regulations shall conform to agreements resulting from such negotiated rulemaking unless the Sec- retary reopens the negotiated rulemaking process or provides a written explanation to the participants in that process why the Sec- retary has decided to depart from such agree- ments. Such negotiated rulemaking shall be conducted in accordance with the provisions of paragraph (1), and the Secretary shall ensure that a clear and reliable record of agreements reached during the negotiations process is maintained. (c) Applicability of chapter 10 of title 5 Chapter 10 of title 5 shall not apply to activi- ties carried out under this section. (d) Authorization of appropriations There are authorized to be appropriated in any fiscal year or made available from funds appro- priated to carry out this part in any fiscal year such sums as may be necessary to carry out the provisions of this section, except that if no funds are appropriated pursuant to this sub- section, the Secretary shall make funds avail- able to carry out this section from amounts ap- propriated for the operations and expenses of the Department of Education. (Pub. L. 89–329, title IV, § 492, as added Pub. L. 102–325, title IV, § 497, July 23, 1992, 106 Stat. 633; amended Pub. L. 105–244, title IV, § 490D, Oct. 7, 1998, 112 Stat. 1755; Pub. L. 110–315, title IV, § 494D, Aug. 14, 2008, 122 Stat. 3324; Pub. L. 111–39, title IV, § 407(b)(12), July 1, 2009, 123 Stat. 1953; Pub. L. 117–286, § 4(a)(148), Dec. 27, 2022, 136 Stat. 4322.) Editorial Notes AMENDMENTS 2022—Subsec. (c). Pub. L. 117–286 substituted ‘‘chapter 10 of title 5’’ for ‘‘Federal Advisory Committee Act’’ in heading and ‘‘Chapter 10 of title 5’’ for ‘‘The Federal Advisory Committee Act’’ in text. 2009—Subsec. (a)(1). Pub. L. 111–39, § 407(b)(12)(A), sub- stituted ‘‘regulations for this subchapter. The’’ for ‘‘regulations for parts B, G, and H of this subchapter. The’’. Subsec. (a)(2). Pub. L. 111–39, § 407(b)(12)(B), sub- stituted ‘‘The Secretary shall provide’’ for text from beginning of par. (2) through ‘‘provide’’, resulting in text identical to that after execution of the amend- ment by Pub. L. 105–244, § 490D(a)(2)(A). See 1998 Amend- ment note below. 2008—Subsec. (a)(1). Pub. L. 110–315, § 494D(a)(1), in- serted ‘‘State student grant agencies,’’ after ‘‘institu- tions of higher education,’’. Subsec. (a)(2). Pub. L. 110–315, § 494D(a)(2), struck out ‘‘, as amended by the Higher Education Amendments of 1998’’ before ‘‘through such mechanisms’’. Subsec. (b)(1). Pub. L. 110–315, § 494D(b), struck out ‘‘as amended by the Higher Education Amendments of 1998’’ before ‘‘and shall submit’’, substituted ‘‘The Sec- retary’’ for ‘‘To the extent possible, the Secretary’’, and inserted ‘‘with demonstrated expertise or experi- ence in the relevant subjects under negotiation,’’ after ‘‘select individuals’’. 1998—Subsec. (a)(1). Pub. L. 105–244, § 490D(a)(1)(C), substituted ‘‘The Secretary shall obtain the advice of and recommendations from’’ for ‘‘Such meetings shall include’’. Pub. L. 105–244, § 490D(a)(1)(B), which directed the sub- stitution of ‘‘this subchapter;’’ for ‘‘parts B, G, and H of this subchapter,’’, could not be executed because ‘‘parts B, G, and H of this subchapter,’’ does not appear in text. Pub. L. 105–244, § 490D(a)(1)(A), struck out ‘‘convene regional meetings to’’ before ‘‘obtain public involve- ment’’. Subsec. (a)(2). Pub. L. 105–244, § 490D(a)(2)(B)–(D), sub- stituted ‘‘this subchapter’’ for ‘‘parts B, G, and H’’, ‘‘1998 through such mechanisms as regional meetings and electronic exchanges of information’’ for ‘‘1992’’, and ‘‘through such mechanisms in’’ for ‘‘at such meet- ings in’’. Pub. L. 105–244, § 490D(a)(2)(A), which directed substi- tution of ‘‘The’’ for ‘‘During such meetings the’’, was executed by making the substitution for ‘‘During such meetings, the’’ before ‘‘Secretary shall provide’’, to re- flect the probable intent of Congress. Subsec. (b). Pub. L. 105–244, § 490D(b), designated ex- isting provisions as par. (1), inserted par. (1) heading, substituted ‘‘obtaining the advice and recommenda- tions described in subsection (a)(1)’’ for ‘‘holding re- gional meetings’’, ‘‘this subchapter’’ for ‘‘parts B, G, and H of this subchapter’’, ‘‘1998’’ for ‘‘1992’’, ‘‘360-day’’ for ‘‘240-day’’, and ‘‘section 1232(e)’’ for ‘‘section 1232(g)’’, struck out ‘‘The Secretary shall follow the guidance provided in sections 305.82–4 and 305.85–5 of chapter 1, Code of Federal Regulations, and any suc- cessor recommendation, regulation, or law.’’ after ‘‘rulemaking process.’’ and ‘‘participating in the re- gional meetings’’ after ‘‘nominated by groups’’, and added par. (2). Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2009 AMENDMENT Amendment by Pub. L. 111–39 effective as if enacted on the date of enactment of Pub. L. 110–315 (Aug. 14, 2008), see section 3 of Pub. L. 111–39, set out as a note under section 1001 of this title. EFFECTIVE DATE OF 1998 AMENDMENT Amendment by Pub. L. 105–244 effective Oct. 1, 1998, except as otherwise provided in Pub. L. 105–244, see sec- tion 3 of Pub. L. 105–244, set out as a note under section 1001 of this title. INAPPLICABILITY OF MASTER CALENDAR AND NEGOTIATED RULEMAKING REQUIREMENTS This section inapplicable to amendment made by sec- tion 100302(a) of Pub. L. 112–141 or to any regulations promulgated under such amendment, see section 100302(b) of Pub. L. 112–141, set out as a note under sec- tion 1089 of this title. This section inapplicable to amendments made by section 309 of Pub. L. 112–74 or to any regulations pro- mulgated under such amendments, see section 309(h) of Pub. L. 112–74, set out as a note under section 1089 of this title. This section inapplicable to amendments made by title V of Pub. L. 112–25 or to any regulations promul- gated under such amendments, see section 504 of Pub. L. 112–25, set out as a note under section 1089 of this title. This section inapplicable to amendments made by section 1860(a)(2) of Pub. L. 112–10 or to any regulations promulgated under such amendments, see section 1860(c) of Pub. L. 112–10, set out as a note under section 1089 of this title. This section inapplicable to amendments made by title IV of Pub. L. 111–39 or to any regulations promul- gated under such amendments, see section 409 of Pub. L. 111–39, set out as a note under section 1089 of this title. This section inapplicable to amendments made by section 402(a) of Pub. L. 110–315 or to any regulations Page 725 TITLE 20—EDUCATION § 1098e promulgated under such amendments, see section 402(b) of Pub. L. 110–315, set out as a note under section 1089 of this title. This section inapplicable to amendments made by Pub. L. 110–227 or to any regulations promulgated under such amendments, see section 11 of Pub. L. 110–227, set out as a note under section 1089 of this title. § 1098b. Authorization of appropriations for ad- ministrative expenses There are authorized to be appropriated such sums as may be necessary for fiscal year 1993 and for each succeeding fiscal year thereafter for administrative expenses necessary for car- rying out this subchapter, including expenses for staff personnel, program reviews, and com- pliance activities. (Pub. L. 89–329, title IV, § 493, as added Pub. L. 102–325, title IV, § 497, July 23, 1992, 106 Stat. 634.) § 1098c. Repealed. Pub. L. 110–315, title IV, § 494E, Aug. 14, 2008, 122 Stat. 3324 Section, Pub. L. 89–329, title IV, § 493A, as added Pub. L. 105–244, title IV, § 490E, Oct. 7, 1998, 112 Stat. 1756, re- lated to Year 2000 requirements at the Department of Education. § 1098d. Procedures for cancellations and deferments for eligible disabled veterans The Secretary, in consultation with the Sec- retary of Veterans Affairs, shall develop and im- plement a procedure to permit Department of Veterans Affairs physicians to provide the cer- tifications and affidavits needed to enable dis- abled veterans enrolled in the Department of Veterans Affairs health care system to docu- ment such veterans’ eligibility for deferments or cancellations of student loans made, insured, or guaranteed under this subchapter. Not later than 6 months after October 7, 1998, the Sec- retary and the Secretary of Veterans Affairs jointly shall report to Congress on the progress made in developing and implementing the proce- dure. (Pub. L. 89–329, title IV, § 493B, as added Pub. L. 105–244, title IV, § 490F, Oct. 7, 1998, 112 Stat. 1758.) Statutory Notes and Related Subsidiaries EFFECTIVE DATE Section effective Oct. 1, 1998, except as otherwise pro- vided in Pub. L. 105–244, see section 3 of Pub. L. 105–244, set out as an Effective Date of 1998 Amendment note under section 1001 of this title. § 1098e. Income-based repayment (a) Definitions In this section: (1) Excepted PLUS loan The term ‘‘excepted PLUS loan’’ means a loan under section 1078–2 of this title, or a Federal Direct PLUS Loan, that is made, in- sured, or guaranteed on behalf of a dependent student. (2) Excepted consolidation loan The term ‘‘excepted consolidation loan’’ means a consolidation loan under section 1078–3 of this title, or a Federal Direct Consoli- dation Loan, if the proceeds of such loan were used to the discharge the liability on an ex- cepted PLUS loan. (3) Partial financial hardship The term ‘‘partial financial hardship’’, when used with respect to a borrower, means that for such borrower— (A) the annual amount due on the total amount of loans made, insured, or guaran- teed under part B or D (other than an ex- cepted PLUS loan or excepted consolidation loan) to a borrower as calculated under the standard repayment plan under section 1078(b)(9)(A)(i) or 1087e(d)(1)(A) of this title, based on a 10-year repayment period; exceeds (B) 15 percent of the result obtained by calculating, on at least an annual basis, the amount by which— (i) the borrower’s, and the borrower’s spouse’s (if applicable), adjusted gross in- come; exceeds (ii) 150 percent of the poverty line appli- cable to the borrower’s family size as de- termined under section 9902(2) of title 42. (b) Income-based repayment program authorized Notwithstanding any other provision of this chapter, the Secretary shall carry out a pro- gram under which— (1) a borrower of any loan made, insured, or guaranteed under part B or D (other than an excepted PLUS loan or excepted consolidation loan) who has a partial financial hardship (whether or not the borrower’s loan has been submitted to a guaranty agency for default aversion or had been in default) may elect, during any period the borrower has the partial financial hardship, to have the borrower’s ag- gregate monthly payment for all such loans not exceed the result described in subsection (a)(3)(B) divided by 12; (2) the holder of such a loan shall apply the borrower’s monthly payment under this sub- section first toward interest due on the loan, next toward any fees due on the loan, and then toward the principal of the loan; (3) any interest due and not paid under para- graph (2)— (A) shall, on subsidized loans, be paid by the Secretary for a period of not more than 3 years after the date of the borrower’s elec- tion under paragraph (1), except that such period shall not include any period during which the borrower is in deferment due to an economic hardship described in section 1085(o) of this title; and (B) be capitalized— (i) in the case of a subsidized loan, sub- ject to subparagraph (A), at the time the borrower— (I) ends the election to make income- based repayment under this subsection; or (II) begins making payments of not less than the amount specified in para- graph (6)(A); or (ii) in the case of an unsubsidized loan, at the time the borrower— (I) ends the election to make income- based repayment under this subsection; or