Bulletin ID
DLB - 99 - 36
| PublicationDate: 6/1/99 BulletinID: DLB - 99 - 36 June 1999 DLB 99-36 Subject: Reduction in the Loan Origination Fee for Direct Loan Borrowers Dear Partner: We are pleased to share the attached press release with you. The press release from Secretary Rileys office announces several changes for Direct Loan borrowers, including a one- point reduction in the loan origination fee for all borrowers of Federal Direct Subsidized and Federal Direct Unsubsidized Loans. The loan origination fee will be reduced from four to three percent. The reduction aids in lowering the cost of student loans to Direct Loan borrowers and could save students hundreds of dollars. We will issue a follow up bulletin early next week that will provide you with detailed information on processing Stafford loans with the three percent loan origination fee. Until you receive this bulletin, we urge that you do not create new 1999-2000 Stafford loan records that have a first disbursement date of 8/15/99 or later. In addition, you should not send records for such loans to the Loan Origination Center (LOC). The forthcoming bulletin will provide details on what the LOC, mainframe, and EDExpress schools will need to do to process loans at the lower rate. Thank you for your continued partnership in the Direct Loan Program. Sincerely, Margaret E. White Acting Chair Direct Loan Task Force Enclosure |