Bulletin ID
DLB - 98 - 48
| PublicationDate: 12/1/98 BulletinID: DLB - 98 - 48 December 1998 DLB 98-48 Subject: Benefits to Schools with Low Default Rates NOTE: This bulletin replaces DLB 98-46 Dear Colleague: We understand that many of you are eager to implement the new provisions under the Higher Education Amendments of 1998. The Amendments exempt some schools from certain provisions of the Higher Education Act and allow certain benefits to schools with default rates that are less than five or 10 percent. Specifically: · Schools with cohort default rates of less than 10 percent for each of the three most recent fiscal years have a limited exemption from the multiple disbursement requirement. These schools may opt to disburse all loan funds in one disbursement if the loan period is not more than one quarter, one semester, one trimester, or four months. · Schools with cohort rates of less than 10 percent for each of the three most recent fiscal years are exempt from the 30-day delayed delivery of disbursements for first-time, first year borrowers. · Schools with cohort rates of less than five percent for the most recent fiscal year are exempt from the multiple disbursement requirement and from delayed delivery of disbursements in the case of a loan made to a student to cover the cost of attendance in a program of study abroad approved by the home eligible institution. If a school is eligible, it may use these exemptions in disbursing applicable loans made at the school on or after October 1, 1998. Eligible schools that use EDExpress Direct Loan software should use the experimental site field in the EDExpress software setup in order to make a single disbursement. From the main menu, click tools, setup, Direct Loan, and system. Under system, select the experimental site option. After this selection is made, a school will be able to originate loans with one disbursement, and the Loan Origination Center will be able to accept single-disbursement loans from schools. We hope this information helps you to implement these changes. Thank you for your ongoing support of the Direct Loan Program. Sincerely, Joe L. McCormick Chair Direct Loan Task Force |