To: Sallie Mae School Customers
Sallie Mae has been an ongoing participant in the Negotiated Rulemaking ("Neg Reg") process for federal student loan programs and was disappointed that the process ended without consensus.
Along with the school representatives at the table, we worked diligently to help establish rules that would benefit students and families.
There were many factors that complicated the process. For example, despite the fact that the Secretary of Education already has authority to sanction schools and lenders that engage in prohibited activities, the agency proposed expansive new draft regulations on the use of preferred lender lists and prohibited inducements, among other issues.
Beginning in 2006, the U.S. Department of Education held the first of three scheduled negotiating sessions. At these meetings, representatives from the Department, public interest groups, higher education institutions, as well as others, were tasked with developing new regulations and/or making changes to existing regulations under the Higher Education Act. A fourth overtime rulemaking session was held April 18–20.
Shortly thereafter, U.S. Secretary of Education Margaret Spellings announced the creation of a special committee called the Task Force on Student Loans. This group is tasked with continuing the work of the Negotiated Rulemaking committee and providing recommendations on key student loan issues, including preferred lender lists, prohibited inducements and proper use of the National Student Loan Data System (NSLDS).
Following the recommendations by the Task Force, which are due to the Secretary on May 31, the Secretary will release draft regulations for a period of public comment (typically 30 days) before the final regulations will be posted in the Federal Register on or before November 1, 2007. If nothing changes the schedule as announced, any final regulations would not become effective until July 1, 2008.
The Task Force on Student Loans includes representatives from the Department's Office of Postsecondary Education, Federal Student Aid and Office of the General Counsel. In addition, representatives from the Inspector General's Office will participate in an advisory role.
Sincerely,
Kevin Moehn
Executive Vice President