Barring Delinquent Debtors From Obtaining Federal Loans or Loan Insurance or Guarantees
other · Fiscal Service · Rule · Published 1998-12-08 · Effective 1999-01-07 · 63 FR 67754
Document
Document number
98-32479
Federal Register citation
63 FR 67754
CFR reference
31 CFR 285
Type
Rule
Action
Final rule.
Category
other
Sub-agency
Fiscal Service
Publication date
1998-12-08
Effective date
1999-01-07
Abstract
The Debt Collection Improvement Act of 1996 (DCIA) mandated a new eligibility requirement for persons seeking Federal financial assistance, namely that delinquent Federal debtors are ineligible for Federal direct and indirect loan assistance (other than disaster loans). On April 22, 1998, the Financial Management Service issued a notice of proposed rulemaking proposing rules to define when a debt is in delinquent status and when a delinquency is resolved for purposes of determining whether the DCIA bars a person from receiving financial assistance. The notice of proposed rulemaking also proposed rules governing when the Secretary of the Treasury may exempt a class of delinquent debts from affecting a debtor's loan eligibility, and proposed factors for authorized agency officials to consider when deciding whether to waive the DCIA eligibility requirement. This final rule finalizes the proposed rule, with changes, and addresses issues raised in comments received on the notice of proposed rulemaking.