Dear Colleague Letters offer reminders regarding foreign schools

The U.S. Department of Education released Dear Colleague Letter GEN-03-10 to remind foreign schools of requirements for Title IV participation. The letter outlines key areas in which foreign schools must comply, including submitting annual Title IV audits, obtaining a Student Aid Report before certifying a loan, and responding to all requests for information from lenders and guarantors.

The Department issued a corresponding letter to lenders, L-03-242, outlining specific lender responsibilities in the disbursement of loan funds to students attending foreign schools. If the lender is participating with a guarantor under a blanket-guarantee agreement, the lender must work closely with the guarantor to ensure that the school that certifies the loan is eligible to participate in the Federal Family Education Loan Program (FFELP). The lender also must ensure that the student has been accepted for enrollment before making any loan disbursement. The lender must notify the foreign school immediately of each disbursement issued directly to a FFELP borrower for attendance at that school.

GEN-03-10 is available to view and print on the USA Funds^® Web site. You will need Adobe Acrobat Reader to access the document.