Publication Date: March 2006

DCL ID: GEN-06-02
               FP-06-01

This Dear Partner letter has been revised as of March 14, 2006. Please see GEN-06-03.

SUBJECT: Enactment of the Higher Education Reconciliation Act of 2005 (“the HERA”), Pub. L. 109-171

SUMMARY: This letter contains information on changes made to the loan programs under Title IV of the Higher Education Act of 1965, as amended (the “HEA”), by Pub. L. 109 171

Posted on 03-10-2006

On February 8, 2006, President Bush signed the Higher Education Reconciliation Act of 2005 (the “HERA”), Pub. L. 109 171, which made significant changes to the Higher Education Act of 1965, as amended (the “HEA”), and reauthorized the Federal Family Education Loan (FFEL) Program. The enclosure attached to this Dear Colleague Letter discusses the effect of the changes made to the HEA by the HERA that affect the William D. Ford Federal Direct Loan Program, the Federal Perkins Loan Program, and the Federal Family Education Loan (FFEL) Program. A separate Dear Colleague Letter will be issued shortly that will discuss the changes made by the HERA that are not limited to the HEA Title IV loan programs.

Topics in this letter are grouped alphabetically under two general categories:

· Topics that primarily affect institutions and borrowers.
· Topics that primarily affect lenders and guaranty agencies.

Unless otherwise noted, the changes made by the HERA are effective on July 1, 2006. If you have any questions on the matters discussed in this letter please contact Pam Moran at (202)-502-7732 or George Harris at (202) 502-7521.

We appreciate your assistance and cooperation as we work to implement these statutory changes.

Sincerely,

Enclosure:

GEN-06-02/FP-06-01: Enactment of the Higher Education Reconciliation Act of 2005 ("the HERA"), Pub. L. 109-171 in PDF Format, 1.33MB, 1 page

(Revised March 14, 2006) - Enactment of the Higher Education Reconciliation Act of 2005 Loan Issues (Enclosure to GEN-06-02 and FP-06-01) in PDF Format, 67KB, 17 page