Federal Default Fee Processing

Higher Education Reauthorization Act (HERA) requires guarantors to collect a federal default fee for any Stafford or PLUS loans it guarantees on or after July 1, 2006.

HESC charges the federal default fee for Stafford and PLUS loans guaranteed on or after May 1, 2008.

The Federal Default Fee Bill is created monthly and is available on the second day after month end.

To help lenders or servicers to appropriately receive and respond to the Federal Default Fee bill, HESC offers the following resources. Please direct any questions to defaultfee@hesc.org or eftbanking@hesc.org.


Federal Default Fee Bulletins
Bulletin TitleBulletin IDReleased
Federal Default Fee Processing UpdateFinancial Aid Services Bulletin 2008 - 00705-08-2008
Federal Default Fee ImplementationFinancial Aid Services Bulletin 2008 - 00604-22-2008
Federal Default Fee Processing Resources
ResourceUpdated
CAM Manual (Chapter 9, Record Layout)10-01-2007
Billing Fields05-05-2008
Billing Webinar Replay06-03-2008
Reconciliation Guide06-01-2008
Lender Profile04-22-2008