OGSLP Legislative Update


Ensuring Continued Access to Student Loans Act of 2008

The Ensuring Continued Access to Student Loans Act of 2008 (H.R. 5715) was signed by the President on May 7, 2008. The bill increases annual and aggregate loan limits for undergraduate dependent and independent students; includes an in-school deferment provision for parent PLUS loans, including extenuating circumstances; clarifies the Lender of Last Resort program (LLR); and grants temporary authority to the U.S. Department of Education (ED) to purchase student loans, improving program liquidity.

Provisions of the new law:

Lender of Last Resort

On May 5, ED released GEN-08-05/FP-08-05, providing additional guidance to guaranty agencies regarding the LLR, which is designed to ensure that borrowers have continued access to Federal Family Education Loan Program (FFELP) loans. The letter outlines LLR implementation details and provides a ‘questions and answers’ (Q&A) attachment. It’s important to note that Q&A item 37 advises that schools that help a student find a conventional lender after being turned down for a loan will not be in violation of the preferred lender list requirements published in the November 1 Federal Register, which are effective July 1, 2008.

Additional LLR guidance is expected from ED now that the President has signed the Ensuring Continued Access to Student Loans Act of 2008 (H.R. 5715). While OGSLP and others in the FFELP community are hopeful that LLR won’t be needed, we’re working to prepare for the program in the event it becomes necessary for any students. Preparation tasks include:

For additional information and assistance, please contact your School/Lender Support Representative or Penny Gandy, School/Lender Services Manager, or call the department number at 800.247.0420, ext. 4329. We’re here to help!

Higher Education Act Update

A one-month extension of programs under the Higher Education Act (HEA) of 1965 – until May 31, 2008 - is expected to be signed by the President this week.  The anticipated action would be the twelfth extension of the HEA, as the law has not been fully renewed since 1998.

OGSLP will continue to keep you informed about HEA and other legislative activity. We encourage you to visit our Legislation Page often to view important updates and access more detailed information. If you have questions, please contact our Policy, Compliance, and Training department at (405) 234-4432 or pct@ogslp.org.

OGSLP Communications
P.O. Box 3000
Oklahoma City, OK 73101-3000