The U.S. Department of Education (ED) has issued Dear Colleague Letter (DCL) GEN-08-08 summarizing provisions included in the recently enacted ECASLA (Pub. L. 110-227). The purpose of the legislation is to ensure access to the Federal Family Education Loan program for students and parents.

Key provisions discussed in the DCL include:

    • Purchasing of FFEL loans by ED from lenders
    • Lender-of-Last Resort program
    • Increased Stafford Loan limits
    • PLUS eligibility and Extenuating Circumstances
    • Postponement of payments for parent PLUS borrowers
    • ACG and National SMART Grant program changes

Please direct questions regarding this announcement to the ED contacts listed on the DCL or, for loan program related issues, to the Office of Counsel and Regulatory Compliance at 1-518-473-3986: for toll-free calls dial 1-866-431-HESC (866-431-4372), press 6 or askpolicy@hesc.org.

Date Posted: 06/24/08