Publication Date: August 26, 2004
DCL ID: FP-04-07
Completion of Loan Verification Certificates (LVCs) by Direct Loan Servicing
Posted on 08-26-2004
August 2004
FP-04-07
Subject: Completion of
Loan Verification Certificates (LVCs) by Direct Loan Servicing.
Summary: This letter announces
the resumption by Direct Loan Servicing of the completion of LVCs in instances
where the borrower has only a Direct Consolidation Loan or has only a Direct
Consolidation Loan and a Federal Perkins Loan(s).
Reference: Section 428C
of the Higher Education Act (HEA)
Dear Colleague:
Recently, the Department's
Office of Federal Student Aid (FSA) stopped completing LVCs submitted by Federal
Family Education Loan (FFEL) lenders in support of an application for a FFEL
Consolidation loan for borrowers who only have a Direct Consolidation Loan or
who only have a Direct Consolidation Loan and a Federal Perkins Loan(s). In
light of the fact that the HEA reauthorization bill introduced in the U.S. House
of Representatives on May 5, 2004 -- H.R. 4283, the "College Access and
Opportunity Act of 2004" -- addresses the issue of reconsolidation of Direct
Loans, the Department has decided to not take action in this area before the
Congress has spoken to the issue. Consequently, FSA will again complete requested
certifications upon receiving LVCs that are submitted by FFEL lenders seeking
to make FFEL Consolidation loans for borrowers who only have a Direct Consolidation
Loan or who only have a Direct Consolidation Loan and a Federal Perkins Loan(s).
Sincerely,
Sally L. Stroup
Assistant Secretary
Office of Postsecondary Education
