Hot Off the Press! CCRAA DCL Released
The Department of Education (ED) recently released Dear Colleague Letter (DCL) GEN-08-01/FP-08-01, which discusses the major changes made to the Title IV loan and grant programs by the College Cost Reduction and Access Act (CCRAA), Pub. L. 110-084. Stay tuned for more information.
ED Announces Revised Promissory Note Addenda and PLDs
In DCL FP-08-02, ED provides the revised promissory note addenda and Plain Language Disclosures (PLDs) for Stafford loans and PLUS loans, and a new promissory note addendum for Consolidation loans.
The revised documents include the changes made to loan terms and conditions by both the Higher Education Reconciliation Act of 2005 (HERA) and the CCRAA.
Until a revised Stafford Master Promissory Note is developed and approved for use, the revised documents must be used with the current promissory notes to inform borrowers of loan term changes enacted by HERA and/or CCRAA. Program participants are advised to discontinue use of current addenda and PLDs and begin using the revised addenda and PLDs as soon as possible.
CCRAA Technical Corrections
Public Law 110-153, dated December 21, 2007, contains technical corrections to the CCRAA regarding the definition of untaxed income and benefits, income-based repayment for married borrowers filing separately, and TEACH Grants.
Determination of Not-For-Profit Holder Status for SAP Billing
In DCL FP-07-12, ED provides guidance on the process that will be used to designate entities that meet the statutory definition of an eligible not-for-profit holder for purposes of special allowance payment (SAP) billings in the FFEL Program.
ED earlier advised in DCL FP-07-11 that additional guidance would be forthcoming when announcing the new LaRS SAP reporting codes for loans first disbursed on or after October 1, 2007. DCL FP-07-12 provides guidance and instructions to serve until final regulations are developed.
OGSLP will keep you advised. We encourage you to visit our Legislation Page often to view important updates and access detailed information about legislative activity. If you have questions, please contact Policy, Compliance, and Training at (405) 234-4432 or email@example.com.