DCL ID: GEN-05-14
Subject: Sample Default Prevention and Management Plan
Summary: This letter announces the revised Sample Default Prevention and Management Plan
Posted on 09-30-2005
Dear Partner:
We have updated the Secretary's Sample Default Management Plan, first published in June 2001, adding new material and expanding the information previously provided. We have also renamed the document the Sample Default Prevention and Management Plan to better reflect the objectives sought when implementing the original plan. The Sample Default Prevention and Management Plan is an attachment to this letter.
If a school is required to use a default prevention and management plan, under 34 CFR 668.14(b)(15) because it is participating in the Federal Family Education Loan (FFEL) Program or the William D. Ford Federal Direct Loan (Direct Loan) Program for the first time or it has undergone a change of ownership that results in a change in control, the school's implementation of the nine activities in the attached Sample Default Prevention and Management Plan will satisfy that requirement. In addition to implementing the regulatory requirements, we encourage all schools to consider adopting the measures described in this Default Prevention and Management Plan.
If a school has applied for participation in the FFEL or Direct Loan Program before the date of this letter, that school may either adopt the Sample Default Management Plan first published in June 2001, or submit their own plan to the Secretary for approval.
If a school is applying for participation in the FFEL or Direct Loan Program for the first time or is applying for approval after a change in ownership that results in a change in control on or after the date of this letter, the school must adopt either this revised Sample Default Prevention and Management Plan or submit their own plan to the Secretary for approval.
If you need technical assistance in implementing a default prevention and management plan, or if you have comments or suggestions about the Sample Default Prevention and Management Plan, you may contact the Default Prevention and Management Team by:
We will consider comments and suggestions you may have during any future update of the Sample Default Prevention and Management Plan.
Sincerely,
Kay Jacks, General Manager
Application, School Eligibility, and Delivery Services
Federal Student Aid
Attachments/Enclosures:
GEN-05-14: Sample Default Prevention and Management Plan in PDF Format, 2.46MB, 2 pages
Sample Default Prevention and Management Plan in PDF Format, 156KB, 9 pages
Sample Default Prevention and Management Plan in Microsoft Word Format, 92KB, 9 pages
