NEGOTIATED RULEMAKING FOR HIGHER EDUCATION 2014-2015

1 5 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 10 UNITED STATES DEPARTMENT OF EDUCATION OFFICE OF POSTSECONDARY EDUCATION (OPE) + + + + + NEGOTIATED RULEMAKING FOR HIGHER EDUCATION 2014-2015 + + + + + TUESDAY, NOVEMBER 4, 2014 + + + + + Anaheim Marriott 700 West Convention Way Anaheim, California + + + + + DEPARTMENT OF EDUCATION PERSONNEL: LYNN MAHAFFIE, Acting Assistant Secretary for Postsecondary Education TED MITCHELL, Undersecretary, Department of Education NEAL R GROSS (202) 234-4433 COURT REPORTERS AND TRANSCRIBERS 1323 RHODE ISLAND AVE., N.W WASHINGTON, D.C 20005-3701 www.nealrgross.com 5 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 TABLE OF CONTENTS Opening Remarks Lynn Mahaffie Ted Mitchell .3 Public Commenters: Debbie Cochrane 12 Jee Hang Lee 18 Cody Hounanian 24 Patricia Hurley 32 Kay Lewis 37 Gustavo Herrera 43 Melanie Delgado 50 Kurston Cook 54 Makenzie Vasquez 61 Dawn Lueck 63/159 Diana Emuge .69 John Zimmerman 74 Graciela Aponte 82 Christopher Casey 88 Megan McLean 92 Kristen Leaf 98/162 Baldwin Ngai .105 Ann Larson .111 Laura Hanna 115 Elva Munoz .118 Karissa McKelvie 125 Frank Gutierrez 130 Angela Tran 135 Christopher Miller .141 LaTonya Subbs 144 Mike Dear 147 Nathan Horns .149 Tasha Courtright .151/166 Concluding Remarks Ms Mahaffie .168 Dr Mitchell .168 NEAL R GROSS 10 COURT REPORTERS AND TRANSCRIBERS 1323 RHODE ISLAND AVE., N.W WASHINGTON, D.C 20005-3701 (202) 234-4433 www.nealrgross.com P-R-O-C-E-E-D-I-N-G-S (1:03 p.m.) MS like to MAHAFFIE: I’d hearing I’m Lynn Mahaffie Secretary for Postsecondary Education at the U.S Department of Education with Ted you to afternoon Dr welcome Good this public I’m the Acting Assistant Mitchell, I am here who is the 10 Undersecretary of Education 11 the Undersecretary since he was confirmed by 12 the U.S Senate in May 13 the Department, he had a very distinguished 14 career 15 California in education, He has been Prior to coming to much of it in He is the former CEO of the New 16 17 Schools Venture 18 president of the California State Board of 19 Education 20 Occidental College 21 us kicked off this afternoon and Fund the He former is the former president of And he is going to get 22 Thank you 23 DR MITCHELL: Thanks, Lynn, and 24 thanks again to all of you for being here 25 this afternoon 1 I’m pleased to welcome you to the second of two public hearings that we are convening area President Obama’s announced extension of the Pay As You Earn repayment plan to those who borrowed also to solicit suggestions for additional issues together, of all incredible direct that us, around importance; loans should for of prior be 10 Department 11 Negotiating Committee to that 2008, considered regulatory action an is, and by the by the 12 As you all know, and what draws 13 us together, is the knowledge that a college 14 education remains the single most important 15 investment that Americans can make in their 16 future 17 higher 18 unemployment Postsecondary earnings and education lowers the produces risk of 19 Unfortunately, for many low and 20 middle income families, college is slipping 21 out of reach 22 the average tuition at a public four-year 23 college 24 typical family’s income has increased only 25 moderately, if at all has Over the past three decades, more than tripled while a More students than ever are relying on loans to pay for college 71 degree averages $29,400 able burdened by debt, especially as they seek to start business, or begin to save for retirement percent of those graduate to a earning with repay debt, a Today, bachelor’s and that debt While most students are their family, buy loans, a many home, feel launch a Over the past several years, the 10 11 administration has worked to ensure that 12 college remains affordable and student debt 13 manageable 14 the 15 $1,000 16 Opportunity Tax Credit and extended access 17 to 18 monthly 19 borrower’s income and debt 20 These This administration has raised maximum Pell It student Grant has award created loan repayment obligations are the by nearly American plans calibrated income-driven where to a repayment 21 plans, like the Pay As You Earn plan that 22 caps 23 payments at 10 percent of income, can be an 24 effective tool to help individuals manage 25 their debt and pursue their careers while a federal student loan borrower’s 1 avoiding the consequences of defaulting on a federal student loan While this significant administration strides made repayment options available to borrowers and building repayment Currently, federal awareness plans, not direct of more all loans in has income-driven needs student are extending to be done borrowers eligible to of cap 10 their monthly loan payments at 10 percent of 11 income Therefore, 12 14 implement four substantive initiatives that 15 will extend support to struggling federal 16 student loan borrowers 17 initiatives will extend the President’s Pay 18 As 19 borrowers who borrowed federal loans to cap 20 their federal student loan payments at 10 21 percent of income, regardless of when they 22 borrowed 23 No plan to existing of Education has directed Earn Department President 13 You the the to The first of these allow additional repayment options 24 will be affected, and the new repayment plan 25 will also end, to include new features to 1 target Today perspectives representing, it looks to me, like communities, student and consumer advocates, and assure that our regulatory efforts support the proposals intent to ease the burden that some borrowers are experiencing in managing 10 the we a a plan look wide to struggling forward range to of cross-section borrowers hearing higher of your education stakeholders to their student loan debt 11 To fulfill the second initiative, 12 the Department will develop, evaluate, and 13 implement new targeted strategies to reach 14 borrowers 15 their federal student loans, to ensure that 16 they 17 select the best repayment option and avoid 18 future default who have the In 19 may be struggling information addition to they to repay need focusing to on 20 borrowers who have fallen behind on their 21 loan 22 borrowers 23 completing 24 have 25 borrowers, payments, who missed this effort have left their their will college education, first especially focus on without borrowers who loan payment and those with low 1 balances, who have defaulted on their loans in loans with income-based monthly payments order to help Our them rehabilitate third effort their includes partnerships with tax preparation companies H&R Block and Intuit, the makers of Turbo Tax income-based repayment plans during the 2015 tax filing season to the better educate borrowers about Building off of prior 10 work, Departments 11 Treasury are collaborating 12 effective ways to 13 their repayment options as they file their 14 2014 federal taxes and on an ongoing through 15 personalized financial management tools inform Finally, 16 of the Education to and develop borrowers about Departments of 17 Education and Treasury will work together to 18 ensure that students and their families have 19 the information they need to make informed 20 borrowing decisions 21 directed us to work with researchers to test 22 the 23 resources, 24 financial awareness counseling tools 25 effectiveness including The administration has of loan counseling the Department’s own On September 29th, I convened a 1 call with higher student debt researchers to identify ways to evaluate and strengthen loan counseling for federal student loan borrowers, and I look forward to continuing this outreach As I education mentioned experts at the and outset, this is the second of two hearings we will conduct on the new Pay As You Earn plan to solicit suggestions, and to solicit 10 suggestions for additional issues we should 11 take up in negotiated rulemaking Based 12 on the public comments 13 gathered in the first hearing and today, the 14 Department will 15 topics be 16 rulemaking committees 17 any committee established after the public 18 hearings will begin negotiations in February 19 of 20 seeking nominations for negotiators will be 21 issued in advance of that date to 2015, and list draft considered a by a one list or of more We anticipate that Federal Notice Register 22 Again, thank you for dedicating 23 your time and your expertise to this very 24 important 25 productive dialogue, and I appreciate your process I look forward to a 1 willingness to share your perspectives with us this afternoon Thanks (Applause) MS MAHAFFIE: started Many of you have preregistered to speak you would like to speak and you have not registered, please go see Amy at the back 10 table, and we’ve got a few more spaces left 11 If you would please limit your 12 remarks to five minutes, we are going to 13 keep track of the time, and I will let you 14 know when you need to wrap up your remarks 15 If everybody has had a chance to speak and 16 we have additional time left, we will let 17 you 18 time up if we get logistical back before couple come issues A you want If additional Today we have a video crew here 19 20 They 21 Education 22 who are actively wanting to be filmed and 23 not others 24 filmed, 25 beginning of your remarks are not part of the Department of They are going to film people So if you would like to be please let them know at the Otherwise, they ... the former CEO of the New 16 17 Schools Venture 18 president of the California State Board of 19 Education 20 Occidental College 21 us kicked off this afternoon and Fund the He former is the former... 15 on 16 education, and jobs opportunity issues like Thank 17 I am the Western for young health you for adults care, allowing At by higher me to 18 testify on the administration’s effort to 19... into forbearance in order to benefit the school of the students and not for the school rate said before manipulation schools from pressuring about 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