Policy Updated on Timely Lender Payment of Federal Default Fee

USA Funds^® advises its lender-partners that the Common Manual recently was revised to reflect a requirement for lenders to remit federal default fee payments to the guarantor within 45 days after any disbursement of loan proceeds. The timely payment standard is effective for federal default fees remitted by lenders for loans disbursed on or after July 1, 2008. If the lender fails to remit the federal default fee in a timely manner, the guarantor may cancel the guarantee on the loan, making it ineligible for interest benefits, special allowance and payment of any claims. For additional information or for assistance in resolving past-due federal default fees, send an e-mail to FDF@usafunds.org.