Department of Education: Federal Perkins Loan Program, Federal Family Education Loan Program, and William D. Ford Federal Direct Loan Program
GAO-13-181R, Nov 16, 2012
GAO reviewed the Department of Education's (Education) new rule on Federal Perkins Loan Program, Federal Family Education Loan Program, and William D. Ford Federal Direct Loan Program. GAO found that (1) the final rule amends the Federal Perkins Loan (Perkins Loan) program, the Federal Family Education Loan (FFEL) program, and the William D. Ford Federal Direct Loan (Direct Loan) program regulations. Specifically, it implements a new Income-Contingent Repayment (ICR) plan in the Direct Loan program based on the "Pay As You Earn" repayment initiative, incorporates recent statutory changes to the Income-Based Repayment (IBR) plan in the Direct Loan and FFEL programs, and streamlines and adds clarity to the total and permanent disability (TPD) discharge process for borrowers in loan programs under title IV of the Higher Education Act of 1965, as amended; and (2) GAO found that Education complied with applicable requirements in promulgating the rule.