Summary: Provisions of Public Law 105-78 affecting the consolidation of student loans in the Federal Family Education Loan Program.
SUBJECT: Provisions of Public Law 105-78 affecting the consolidation of student loans in the Federal Family Education Loan Program.
REFERENCE: Section 428C of the HEA.
On November 13, 1997, President Clinton signed Pub. L. 105-78, the Departments of Labor, Health and Human Services, and Education, and Related Agencies Appropriations Act of 1998. Section 609 of that Appropriations Act made changes to the Federal Family Education Loan consolidation provisions contained in section 428C of the Higher Education Act of 1965 ("HEA"). [Note: Pub. L. 105-78 refers to section 609 as the "Emergency Student Loan Consolidation Act of 1997."]
This letter describes the changes made to section 428C of the HEA by the new law, and provides guidance (in the form of responses to questions from student loan program participants) about how these changes should be implemented. It also contains information about how the Department is processing Consolidation Loan verification certificates received from FFEL lenders, and copies of the forms used in that process. If you have questions about the requirements of this new legislation, please contact the Policy Development Division at (202) 708-8242.
Acting Deputy Assistant Secretary
Student Financial Assistance Programs