May 12, 2009

Loan Verification Certificate Completion

The U.S. Department of Education’s (ED) Dear Colleague Letter (DCL) FP-09-03, posted on April 3, 2009, addresses the completion of Loan Verification Certificates (LVCs). This DCL provides updated guidance to FFELP loan holders with respect to the completion and return of LVCs in connection with a borrower’s application to consolidate a single FFELP consolidation loan into a new Federal Direct Consolidation Loan.

Except in the case of a joint FFELP consolidation loan, a loan holder must complete and return an LVC for a borrower who has applied to consolidate into the Direct Loan Program. A loan holder cannot refuse to complete an LVC based solely on the fact that the only loan to be consolidated is a single FFELP consolidation loan.

For more information, refer to the full text of DCL FP-09-03 or contact our Policy, Compliance and Training department at 405.234.4432 or pct@ogslp.org. We’re here to help!