If you use a financial-aid-management system developed specifically for your institution, you and your technology staff should consider the following potential issues regarding the Federal Default Fee:

• Does the system calculate or estimate loan fees for each borrower?
• In what ways does the system calculate or “know about” the exact fee charged by a guarantor?
• In what ways does the system calculate or “know about” the exact fee actually applied to an individual loan?
• Where in the system is the fee for a particular guarantor stored?
• Can the system accommodate more than one fee per year for each guarantor?
• What information currently is uploaded from the financial-aid system to the bursar’s office? Does this information need to be modified to account for a Federal Default Fee?
• How is the student-accounts module affected when the actual net disbursement is different from the expected net disbursement?
• Are there any impacts on calculating refunds or returns?
• How do loan fees affect system-generated reports? Do reports already contain data fields that show gross or net loan amounts as needed?

For additional assistance, contact your USA Funds ^® Services representative .