Dear Colleague Letter Addresses Consolidation-Loan Issues

The U.S. Department of Education provided an update on consolidation-loan issues. In Dear Colleague Letter GEN-06-20, the Department addresses revised eligibility requirements for loan consolidation through the Federal Family Education Loan Program and Federal Direct Loan Program, and reminds FFELP participants of their obligation to promptly complete and return Loan Verification Certificates. The letter also provides information about implementing restrictions on a borrower’s eligibility to consolidate existing consolidation loans.