Publication Date: September 2002
Bulletin ID: DLB-02-33
Summary: Certain Statutory Exceptions to Multiple Disbursement and 30-Day Delayed Disbursement Requirements Expire on September 30, 2002
Posted on 09-30-2002
September 2002
DLB-02-33
Subject: Certain Statutory Exceptions to Multiple Disbursement and 30-Day Delayed Disbursement Requirements Expire on September 30, 2002
Dear Partner,
We would like to take this opportunity to remind you that certain statutory exceptions to the multiple disbursement and 30-day delayed disbursement requirements will expire on September 30, 2002. The exceptions that will expire on September 30, 2002 have allowed a school that has a cohort default rate of less than 10 percent for each of the three most recent years:
- To disburse a loan in one installment if the loan period is only one term or, for non-term and non-standard term programs, the loan period is equal to or less than four months; and
- To disburse a loan for a first-time, first-year undergraduate borrower earlier than 30 days after the first day of the student's program of study.
As explained in GEN-02-06 (August 2002), the expiring exceptions will no longer apply to Direct Loans that you originate on or after October 1, 2002. That is, for any Direct Loan that you originate on or after October 1, 2002, you may not make an exception to the multiple disbursement and 30-day delayed disbursement requirements based on the fact that your school's three most recent cohort default rates are each less than 10 percent. For your reference, you can view GEN-02-06 at http://www.ifap.ed.gov/dpcletters/GEN0206.html
If you have any questions about this bulletin, please contact COD School Relations at 800/848-0978 or via email at CODSupport@afsa.com. We thank you for your continued partnership in the Direct Loan Program.
Sincerely,
Jane Holman
Acting Director, Title IV Delivery
Schools Channel