[Oasfaa] Default Fee Clarification

[Mowdy, Mary]

OGSLP is pleased to see that discussion is taking place within the
financial aid community about the new Default Fee. 

The Deficit Reduction Act, signed into law one month ago, mandates that
for loans guaranteed on or after July 1, a Default Fee must be collected
and deposited into the guarantor's Federal fund. This means that when
the new law takes full effect this year, no guarantor may waive the
collection of the fee.  Further, the fee is required to be collected
from a non-federal source. 

We are among a very small group of guarantors who have announced to
their constituents the implementation of the new fee.  While we expect
that most guarantors will soon be making similar announcements, we
thought our community would appreciate an earlier notice for planning
purposes.  You may or may not be aware that both NELA and USA Funds have
made announcements similar to ours. 

I hope this has provided some clarification to the new Federal mandate.


Mary Mowdy, Executive Director
Oklahoma Guaranteed Student Loan Program
A division of the Oklahoma State Regents for Higher Education
P. O. Box 3000
Oklahoma City, OK 73101-3000
405-234-4310  fax: 405-234-4565
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