Competitive Loan Auction Pilot Program; Cancellation of Auction for the Right to Originate PLUS Loans to New Parent Borrowers

Federal Register: April 29, 2009 (Volume 74, Number 81)

Notices

Page 19539-19540

From the Federal Register Online via GPO Access [wais.access.gpo.gov]

DOCID:fr29ap09-54

DEPARTMENT OF EDUCATION

Office of Postsecondary Education; Title IV, Part I, Section 499 of the Higher Education Act of 1965, as Amended--Competitive Loan

Auction Pilot Program

AGENCY: Office of Postsecondary Education, U.S. Department of

Education.

Page 19540

ACTION: Notice of cancellation of the auction under the Competitive

Loan Auction Pilot Program for the right to originate PLUS loans to new parent borrowers under the Federal Family Education Loan (FFEL)

Program.

SUMMARY: Through this notice, the Secretary of Education (the

Secretary) announces the cancellation of the auction (Auction) that was scheduled to occur on April 15, 2009 under the Competitive Loan Auction

Pilot Program (Auction Program) for the rights to originate PLUS loans to parent borrowers under the FFEL Program.

FOR FURTHER INFORMATION CONTACT: For information about the Auction

Program go to http://www.ed.gov/ope/plus-auction or contact: Donald

Conner, U.S. Department of Education, 1990 K Street, NW., room 8030,

Washington, DC 20006. Telephone (202) 502-7818, or by fax to (202) 502- 7873. You may also e-mail your questions about the Auction Program to: donald.conner@ed.gov.

If you use a telecommunications device for the deaf (TDD), call the

Federal Relay Service (FRS), toll free, at 1-800-877-8339.

Individuals with disabilities can obtain this document in an accessible format (e.g., braille, large print, audiotape, or computer diskette) by contacting the program contact person listed in this section.

SUPPLEMENTARY INFORMATION: In the Federal Register of March 3, 2009, the Secretary announced his intention to conduct, and invited eligible

FFEL lenders to participate in, an Auction for the rights to originate

PLUS loans to new parent borrowers under the FFEL Program (74 FR 9232).

Through the Auction, the Secretary would award the rights to originate

PLUS loans to new parent borrowers under the Federal PLUS Program authorized by section 428B of Title IV of the Higher Education Act of 1965, as amended (HEA), for loan periods beginning on or after July 1, 2009 and ending on or before June 30, 2011.

The period for the submission by lenders of pre-qualification requests for the Auction closed on April 1, 2009. In order for the

Auction to have been considered successful for any State, at least two lenders must have submitted pre-qualification requests for that State.

However, the Department failed to receive two requests for pre- qualification for any State, and for the vast majority of States the

Department received no requests. For this reason, the Secretary has determined that the purpose of the Competitive Loan Auction Pilot

Program has been frustrated, and he is cancelling the Auction that was scheduled to occur on April 15, 2009. During the 2009-10 and 2010-11 award years, Parent PLUS loans under the FFEL Program may be made by any eligible lender selected by the parent borrower.

Electronic Access to This Document: You can view this document, as well as all other documents of this Department published in the Federal

Register, in text or Adobe Portable Document Format (PDF), on the

Internet at the following site: http://www.ed.gov/news/fedregister.

To use PDF, you must have Adobe Acrobat Reader, which is available free at this site. If you have questions about using PDF, call the U.S.

Government Printing Office (GPO), toll free, at 1-888-293-6498; or in the Washington, DC area at (202) 512-1530.

Note: The official version of this document is the document published in the Federal Register. Free Internet access to the official edition of the Federal Register and the Code of Federal

Regulations is available on GPO Access at: http://www.gpoaccess.gov/ nara/index.html.

Delegation of Authority: The Secretary of Education has delegated authority to Daniel T. Madzelan, Director, Forecasting and Policy

Analysis for the Office of Postsecondary Education, to perform the functions of the Assistant Secretary for Postsecondary Education.

Dated: April 24, 2009.

Daniel T. Madzelan,

Director, Forecasting and Policy Analysis.

FR Doc. E9-9884 Filed 4-28-09; 8:45 am

BILLING CODE 4000-01-P

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