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<P><FONT SIZE=2 FACE="Arial">OGSLP is pleased to see that discussion is taking place within the financial aid community about the new Default Fee. </FONT>
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<P><FONT SIZE=2 FACE="Arial">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. </FONT></P>
<P><FONT SIZE=2 FACE="Arial">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. </FONT></P>
<P><FONT SIZE=2 FACE="Arial">I hope this has provided some clarification to the new Federal mandate. </FONT>
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<P><FONT SIZE=2 FACE="Tahoma">Mary Mowdy, Executive Director</FONT>
<BR><FONT SIZE=2 FACE="Tahoma">Oklahoma Guaranteed Student Loan Program</FONT>
<BR><FONT SIZE=2 FACE="Tahoma">A division of the Oklahoma State Regents for Higher Education</FONT>
<BR><FONT SIZE=2 FACE="Tahoma">P. O. Box 3000</FONT>
<BR><FONT SIZE=2 FACE="Tahoma">Oklahoma City, OK 73101-3000</FONT>
<BR><FONT SIZE=2 FACE="Arial">405-234-4310 fax: 405-234-4565</FONT>
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