Publication Date: September 2004

Subject: Federal Perkins Loan Program: Default Reduction Assistance Program

Summary: This letter provides information on the Default Reduction Assistance

Program that is available to assist schools in its collection efforts of defaulted

Federal Perkins Loans

Reference: 2004-2005 Federal Student Aid Handbook – Volume 6

Dear Partner:

The U.S. Department of Education’s Default Reduction Assistance Program (DRAP) is available to assist you to bring defaulted Federal Perkins Loan borrowers into repayment. Under DRAP, a school can request that the Department send computer generated letters directly to defaulted Perkins Loans borrowers informing them of the serious consequences of default. The letters also provide school contact information. The intent of DRAP is to get the borrower back into repayment before the account goes to a collection agency.

Although school participation in DRAP is voluntary, we encourage your school to use this service. The following information on DRAP is provided in a question and answer format.

Questions & Answers

Q1 How does my school participate in DRAP?

A1 To participate in DRAP your school should contact Sherraine Green at by

phone at (202) 377-3185, or by email to Sherraine.Green@ed.gov, to request

the DRAP package. Ms. Green will send you a DRAP package that includes the

software needed for the DRAP service.

Q2 How do we submit our DRAP file of defaulted borrowers?

A2 Submission of your DRAP file is easy via the Student Aid Internet Gateway

(SAIG). If you are unsure or unfamiliar with SAIG, you can learn all about it at

www.fsawebenroll.ed.gov.

Q3 Which defaulted borrowers should the school ask the Department to

send letters to under DRAP?

A3 Since the intent of DRAP is to get a defaulted Perkins Loan borrower back

into repayment before the account goes to a collection agency, this service

should not be requested once the account has been referred to a collection

agency. DRAP service is usually provided during the 30-day period when the

school is waiting for a response from the defaulted Perkins Loans borrower to

the final demand letter.

Q4 How many letters will the Department send to a defaulted borrower?

A4 The Department will send each defaulted Perkins borrower only one letter.

Therefore, each school must ensure that a borrower is included in a DRAP

request only once to prevent the mailing of duplicate letters from the

Department.

Q5 How much does using DRAP cost the school?

A5 The Department provides this service at no cost to the school.

Q6 What if I have other questions about DRAP?

A6 If you have any questions regarding participation in DRAP, please contact

Sherraine Green of my staff directly by phone at (202) 377-3185 or by email at

Sherraine.Green@ed,gov.

We look forward to working with you under DRAP to help you with your school’s collection efforts with defaulted borrowers.

Sincerely,

Richard Coppage, Director

Campus-Based Operations Branch