Department Releases Clarification About Special-Allowance Guidance

On April 19, 2006, the U.S. Department of Education provided clarification to lenders regarding the billing and payment of special allowance on PLUS loans made on or after Jan. 1, 2000, and prior to July 1, 2006. The letter states that because final guidance for processing Lender’s Interest and Special Allowance Request and Report billings is pending, Federal Student Aid will process billings for the quarter ending March 31, 2006, as usual, but will omit payment for the PLUS loans affected by statutory changes. Read the details of the letter using Adobe Acrobat Reader.