Publication Date: September 2005
| DCL ID: | GEN-05-14 |
Sample Default Prevention and Management Plan
Summary: This letter announces the revised Sample Default Prevention and Management Plan
Note: On July 15, 2011, Federal Student Aid launched a new Default Prevention Resource Information Web page that links schools to this Sample Default Prevention and Management Plan posted in September 2005. We are finalizing updates to the sample plan and will post refreshed guidance on the Information for Financial Aid Professionals (IFAP) Web site in the near future.
In the meantime, you may find that some resource links in the attached sample plan are outdated and will not work properly. We regret this inconvenience and direct you to our newly implemented e-mail address for Default Prevention Assistance. You may e-mail defaultpreventionassistance@ed.gov for assistance with the sample plan and your school’s default prevention efforts.
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:
- Calling 202-377-4259;
- Visiting the Default Prevention and Management Team’s web site at http://ifap.ed.gov/DefaultManagement/DefaultManagement.html; or
- E-mailing to fsa.schools.default.management@ed.gov.
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 Microsoft Word Format, 92KB, 9 pages
Sample Default Prevention and Management Plan in PDF Format, 156KB, 9 pages
