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Publication Date: October 24, 2008 Bulletin ID: DLB-08-24 Summary: Operational Procedures -- Deferment Options for Parent Direct PLUS Loan Borrowers Based on Student Enrollment Status Posted on 10-24-2008 Dear Direct Loan Colleague: In Direct Loan Bulletin (DLB) 08-17, we outlined changes to Direct PLUS Loan terms and conditions made by the Ensuring Continued Access to Student Loans Act (the ECASLA). One of the changes provided parent PLUS loan borrowers with a delayed repayment option. At that time, we explained the ECASLA provision and informed schools that parent Direct PLUS Loan borrowers should contact the Direct Loan Servicing Center to request the delayed repayment option until we finalized our operational procedures related to the change and issued additional guidance. Subsequent to publication of DLB-08-17 and before we were able to issue additional operational guidance on the delayed repayment option for parent Direct PLUS Loan borrowers, the Higher Education Opportunity Act (the HEOA) was enacted. This legislation established deferment provisions for PLUS loan borrowers that superseded the changes made by the ECASLA. The Department of Education (the Department) will issue guidance on all of the changes made to the Title IV federal student aid programs by the HEOA through forthcoming communications posted on the Information for Financial Aid Professionals (IFAP) Web site and training opportunities. The purpose of this bulletin is to assist schools and parent Direct PLUS Loan borrowers by providing guidance on the operational procedures the Direct Loan Servicing Center is following for parent borrowers who wish to defer repayment based on the enrollment status of the dependent student on whose behalf a Direct PLUS Loan was obtained. The operational procedures are outlined in the attachment to this bulletin titled "Operational Procedures - Deferment Options for Parent Direct PLUS Loan Borrowers Based on Student Enrollment Status." If you have questions about the information contained in this bulletin or the attachment, please contact the Direct Loan Servicing Center’s School Services Team at 888/877-7658. Sincerely,
William Leith Attachments/Enclosures: |
