Bulletin ID
DLB - 99 - 54
| PublicationDate: 8/1/99 BulletinID: DLB - 99 - 54 August 1999 DLB 99-54 Subject: Loan Default Timeframe Extended Dear Partner: The Higher Education Amendments of 1998 extended the timeframe for loan default. The amount of time a borrower may be delinquent on loan payments before the loan is considered to be in default has been extended by 90 days. Under the new law, a Stafford, PLUS, or Consolidation loan that is repayable in monthly installments must now be delinquent for 270 days before it defaults. Previously, a loan defaulted when it remained delinquent for 180 days. This new default provision is in effect now for loans that became delinquent on or after October 7, 1998. As a result, the first Direct Loan defaults under this new provision occurred in July 1999 based on the October effective date. However, final regulations will not be published in the Federal Register until November 1999. Thank you for your ongoing partnership in the Direct Loan Program. Sincerely, Margaret E. White Chair Direct Loan Task Force |